From CNBC: 2025-04-17 15:33:00

Harvard University refuses to comply with Trump administration’s demands, risking $2.2 billion in grants and $60 million in contracts. The administration has asked the IRS to revoke Harvard’s tax-exempt status, valued at over $465 million in 2023. Harvard faces potential consequences for violating First Amendment rights.

Harvard’s endowment of $52 billion is larger than the GDP of many countries. The endowment generated a 9.6% return last fiscal year. Harvard has a history of large donations from wealthy alumni. The university has shifted its investment strategy to include riskier assets like private equity and hedge funds.

University endowments are not unrestricted funds but are made up of smaller restricted funds. Harvard’s endowment of $9.6 billion is not subject to donor restrictions but could be liquidated in emergencies. Harvard is considering issuing taxable bonds and implementing austerity measures to shore up its finances amidst threats to federal funding.



Read more at CNBC: Harvard’s battle with Trump creates thorny financial situation