University donors during the Israel–Hamas war

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After the October 7 attacks by Hamas on Israel, donors to colleges and universities in the United States halted donations or cut ties with the schools over their responses to the attacks and the resulting antisemitism on campuses. The reaction has been called a donor backlash, [1] [2] a donor revolt, [1] [3] a donor crisis, [4] and a donor uprising. [5]

Contents

Background

At colleges and universities in the United States, private donors give to specific purposes, often site on universities' board of trustees, and can fill funding gaps. According to Indiana University's Lilly Family School of Philanthropy, educational institutions are second only to religious institutions as the largest recipient of donations in the United States. At Harvard University, for example, philanthropy is the single largest contributor of revenue, accounting for 45% of the university's income. [1]

Events

In the aftermath of the October 7 attacks in 2023, there was a rise of anti-Israel speech and antisemitism on campuses, especially at elite universities such as the Ivy League. Major donors announced they would cut their ties and withhold donations to the schools in protest of the colleges' responses. [1]

After the escalation of pro-Palestinian encampments and occupations on college campuses in April 2024, at which there were concerns about antisemitism, safety of Jewish students, and violence, additional donors announced disassociations with colleges and universities and the cessation of donations. [6] [5]

Harvard University

At Harvard University, a coalition of student groups released an anti-Israel statement solely blaming Israel for the attacks on October 8. Only three days later did Harvard address the matter directly with a statement from then-president Claudine Gay that drew criticism from Jewish and Israeli students for not acknowledging the barbarity of the October 7 attacks. [1] [7]

On October 13, philanthropist Idan Ofer stepped down from the executive board of the Harvard Kennedy School, citing "lack of clear evidence of support from the University’s leadership for the people of Israel following the tragic events of the past week, coupled with their apparent unwillingness to recognize Hamas for what it is, a terrorist organization." [7]

On October 16, the Wexner Foundation cut ties with Harvard, citing the "dismal failure of Harvard’s leadership to take a clear and unequivocal stand against the barbaric murders of innocent Israeli civilians by terrorists." [8]

University of Pennsylvania

In September 2023, the University of Pennsylvania (UPenn) hosted the controversial Palestine Writes Literary Festival, prompting more than 4,000 people, including prominent donors, to sign an open letter to university president Liz Magill, saying that "platforming of outright antisemitism without denunciation from the university is unacceptable." In the days after the October 7 attacks in 2023, donors such as Mark Rowan, CEO of Apollo Global Management, called the university's response insufficient, demanded that Magill and Bok step down, and called for other alumni to "close their checkbooks" until their resignations. [9] [10] In 2018, Rowan donated $50 million to the Wharton School, considered the largest donation the school had ever received, and he chaired Wharton's board of advisors. Rowan became a key influential voice encouraging wealthy donors to withhold donations to schools. [3]

After hearing Rowan's criticism of UPenn, investor Steve Eisman asked UPenn to remove his family's name from a scholarship, telling officials that "he does not want my family's name associated with the University of Pennsylvania, ever." Eisman was also frustrated by UPenn's response to Palestine Writes. [3]

On October 15, Jon Huntsman Jr. announced that his family foundation would stop donating to UPenn, writing to Magill that, "Moral relativism has fueled the university’s race to the bottom and sadly now has reached a point where remaining impartial is no longer an option." Huntsman previously served on Upenn's board of trustees. Jon Huntsman Sr. had donated at least $50 million to the Wharton School as of 2014. [10]

Also on October 15, investor and computer scientist David Magerman announced he was withdrawing his grants to the school over the school's handling of the situation. [11]

After Magill's controversial appearance during a U.S. Congressional hearing on antisemitism in December 2023, in which she avoided questions about how students calling for the genocide of Jews would be punished, hedge fund CEO Ross Stevens rescinded a planned $100 million donation to the school. [12]

Columbia University

In April 2024, Robert Kraft announced that he was "not comfortable" supporting Columbia University until actions were taken to end the encampments on campus. Kraft had donated at least $8.5 million to the university since 2000. [6]

That same month, the Russell Berrie Foundation announced it was suspending its giving to Columbia over the university's lack of response to "create a tolerant and secure environment for Jewish members of the Columbia community." The foundation had donated more than $85 million to the university. [5]

Reactions

U.S. Senate Majority Leader Mitch McConnell praised Rowan on the Senate floor, noting that Rowan's call to boycott the school had spread like wildfire, precipitating a crisis that by one account could put a billion-dollar hole in the university's books. [3]

Impact

Financial impact

According to Lee Gardner of the Chronicle of Higher Education in October 2023, the financial impact on schools such as Harvard and UPenn would likely be felt in the long-term, on gifts and donations that would come to fruition over years. Smaller private schools and state flagship schools would be impacted if the donor backlash spread from the Ivy League. Sara Harberson, a former associate dean of admissions at UPenn, said that big donors cutting ties could convince smaller donors to end their contributions, hurt alumni relations, and put pressure on the university president or board of trustees. [1]

In November 2023, Harvard gift officers expressed their fear in the Harvard Crimson that long-time donors would stop giving as a result of the controversy over the university's response to the Israel-Hamas war and concerns about antisemitism on campus. [2] Gifts to Harvard dropped 15% during the 2024 fiscal year, the biggest decrease in donations in 8 years. [13]

Columbia University's Gift Day on October 2, 2024, its first since the October 7 attacks, raised 29% less in gifts compared to 2022 and was the first year that total monetary donations had declined since the first Gifting Day in 2012. [4]

The Penn Fund at the University of Pennsylvania raised less money from fewer donors in 2024 than any year since 2020, with donations down 21% compared to the previous year. [14]

Reallocation

Several donors redirected their giving to Israeli universities or Jewish causes. Two months after cutting financial ties with Columbia University, Robert Kraft directed a $1 million donation to Yeshiva University in June 2024 to fund a program for students seeking to transfer to the Jewish university. [15] That month, an anonymous Columbia University graduate donated $260 million to Bar-Ilan University in Israel. [16] David Magerman redirected $5 million intended for UPenn to five Israeli universities in October, including Jerusalem College of Technology, Tel Aviv University, Technion, and Bar-Ilan University, to create degree tracks in English. [11]

See also

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References

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