#  What is Harvard's endowment? 

 



Harvard’s endowment is a dedicated and permanent source of funding that maintains the teaching and research mission of the University. Made up of over 14,000 individual funds invested as a single entity, the endowment’s returns have enabled leading financial aid programs, groundbreaking discoveries in scientific research, and hundreds of professorships across a wide range of academic fields.

Each year, a portion of the endowment is paid out as an annual distribution to support the University’s budget, while any appreciation in excess of this annual distribution is retained in the endowment so it can grow and support future generations. As a result, the endowment can provide the financial foundation for the University for generations to come.

Distributions from Harvard’s endowment provide a critical source of funding for the University. The endowment distributed $2.4 billion in the fiscal year ending June 30, 2024 contributing over a third of Harvard’s total operating revenue in that year. The overwhelming majority of the funds that make up Harvard’s endowment are donor directed to specific programs, departments, or purposes (dedicated scholarships, named professorships, etc.), and must be spent in accordance with terms set forth by the donor. Payout from these funds can only be spent in support of the fund’s designated purpose. Unrestricted funds, which account for approximately 20 percent of Harvard’s endowment, are more flexible in nature and are critical in supporting structural operating expenses and transformative, strategic initiatives.

Each of Harvard’s twelve Schools “owns” its share of the endowment. Over 80 percent of the funds that make up the endowment are dedicated by the donor to a specific School. School revenue profiles vary widely, and each draws a different proportion of its budget from its endowment.

   ![A line chart showing the endowment payout rate overlaid on a bar chart showing the endowment distribution in millions of dollars between 2007 and 2024.](/sites/g/files/omnuum12671/files/styles/hwp_1_1__720x720_scale/public/fad/files/fy24_operating_revenue.png?itok=EEjm1s4m) 

 



 

 

 



 

 See also:- [ Endowment ](/faq/endowment)