Post by sader1970 on Jun 26, 2018 6:51:35 GMT -5
Poor Harvard!
I guess Holy Cross must depend on "grassroots support" because we just don't have enough Park Smiths or Luths and Edward Bennett Williams is long gone.
Harvard Billionaires Bail Out Alma Mater From Poor Fund Returns
The university’s endowment returns may lag the Ivy League average, but Wall Street’s elite make the school a fundraising powerhouse.
Three years ago, hedge fund billionaire John Paulson offered his alma mater, Harvard Business School, an enormous gift. Nitin Nohria, the school’s dean, responded in a way that would shock most other charitable organizations: Thanks, but we don’t need it. Instead, Nohria suggested that Paulson direct the money toward Harvard’s engineering school, according to people familiar with the exchange. So, in 2015, Paulson did just that, giving $400 million, a gift the university called its largest ever.
This embarrassment of riches helped Harvard University raise more than $9 billion in its most recent fundraising campaign. That record haul represents a key achievement of Drew Faust, who steps down this month as Harvard’s 28th president after an 11-year tenure. Among other bequests, she secured $150 million from hedge fund Citadel Advisors’ Ken Griffin, largely for financial aid. Another $50 million came from the family foundation of Ukrainian-born industrialist and investor Len Blavatnik for biomedical research. The foundation of Glenn Hutchins, co-founder of private equity firm Silver Lake, gave $30 million in part to renovate undergraduate dorms.
Such benefactors, in effect, bailed out Harvard from Faust’s other legacy: a decade of poor investment performance at the university’s $37.1 billion endowment, higher education’s largest. During that time, it returned an annualized 4.4 percent, compared with 5.9 percent for the average Ivy League school. By lagging the average, Harvard missed out on about $6 billion in investment gains over the last decade, according to an estimate by Wellesley College economist Phillip Levine. (His model made various assumptions, such as a 5 percent annual spending rate.)
Like all elite colleges, Harvard and its Cambridge, Mass., campus are growing ever more dependent on a smaller group of super-wealthy philanthropists. Almost one-third of the dollar value of gifts to all colleges in the last year came from only a dozen donors, according to the Council for Aid to Education, a New York nonprofit that tracks higher education gifts. Top universities are vying for multimillion-dollar donations as mega-gifts fuel the record $58.9 billion given last year to education, mostly colleges, according to an estimate by Giving USA, which tracks philanthropy. “We are always striving to hit a new high, because that just gives us a greater opportunity to do more to benefit both our student body and our faculty,” says John Taylor, a higher education fundraising consultant.
[you can read the rest at: www.bloomberg.com/news/articles/2018-06-26/harvard-billionaires-bail-out-alma-mater-from-poor-fund-returns?utm_campaign=news&utm_medium=bd&utm_source=applenews ]
The university’s endowment returns may lag the Ivy League average, but Wall Street’s elite make the school a fundraising powerhouse.
Three years ago, hedge fund billionaire John Paulson offered his alma mater, Harvard Business School, an enormous gift. Nitin Nohria, the school’s dean, responded in a way that would shock most other charitable organizations: Thanks, but we don’t need it. Instead, Nohria suggested that Paulson direct the money toward Harvard’s engineering school, according to people familiar with the exchange. So, in 2015, Paulson did just that, giving $400 million, a gift the university called its largest ever.
This embarrassment of riches helped Harvard University raise more than $9 billion in its most recent fundraising campaign. That record haul represents a key achievement of Drew Faust, who steps down this month as Harvard’s 28th president after an 11-year tenure. Among other bequests, she secured $150 million from hedge fund Citadel Advisors’ Ken Griffin, largely for financial aid. Another $50 million came from the family foundation of Ukrainian-born industrialist and investor Len Blavatnik for biomedical research. The foundation of Glenn Hutchins, co-founder of private equity firm Silver Lake, gave $30 million in part to renovate undergraduate dorms.
Such benefactors, in effect, bailed out Harvard from Faust’s other legacy: a decade of poor investment performance at the university’s $37.1 billion endowment, higher education’s largest. During that time, it returned an annualized 4.4 percent, compared with 5.9 percent for the average Ivy League school. By lagging the average, Harvard missed out on about $6 billion in investment gains over the last decade, according to an estimate by Wellesley College economist Phillip Levine. (His model made various assumptions, such as a 5 percent annual spending rate.)
Like all elite colleges, Harvard and its Cambridge, Mass., campus are growing ever more dependent on a smaller group of super-wealthy philanthropists. Almost one-third of the dollar value of gifts to all colleges in the last year came from only a dozen donors, according to the Council for Aid to Education, a New York nonprofit that tracks higher education gifts. Top universities are vying for multimillion-dollar donations as mega-gifts fuel the record $58.9 billion given last year to education, mostly colleges, according to an estimate by Giving USA, which tracks philanthropy. “We are always striving to hit a new high, because that just gives us a greater opportunity to do more to benefit both our student body and our faculty,” says John Taylor, a higher education fundraising consultant.
[you can read the rest at: www.bloomberg.com/news/articles/2018-06-26/harvard-billionaires-bail-out-alma-mater-from-poor-fund-returns?utm_campaign=news&utm_medium=bd&utm_source=applenews ]
