HBS Spending $32 Million In MBA Aid

The school’s fundraising efforts also reached record bounties. HBS said that total current use giving, including restricted and unrestricted gifts, increased to $43 million, surpassing the record of $36 million set in fiscal 2011. The school’s annual report shows that its endowment swelled to a record $2,880,000 in fiscal year 2013, up from $2,665,000 a year earlier. The endowment alone threw off $117 million to fund the school’s operations.

“Reflecting the strong recovery in the market value of the endowment since the global economic downturn of 2008– 2009, as well as new endowment gifts, the school’s endowment distribution revenue for fiscal 2013 increased seven percent year-over-year to $117 million,” said Melnick in his analysis of the year.

THE NEW FIELD COURSE IN THE MBA CURRICULUM COSTS HBS $10 MILLION A YEAR

Harvard had no trouble spending those higher revenues. The school noted that the total cost of its global immersion trips in the new MBA curriculum alone cost $10 million a year.

“Fiscal 2013 was the second academic year for FIELD—the school’s innovative course in the MBA Required Curriculum,” noted Melnick. “FIELD is characterized by its focus on team-based learning outside the classroom in a variety of settings. During FIELD 2, all 900-plus students spend 10 days working in an emerging market on a new project or service project with a global partner organization. Providing faculty, travel, and administrative support for the FIELD teams both on campus and internationally has added approximately $10 million to the School’s annualized baseline MBA program delivery costs. MBA tuition and fee revenues cover only a minor portion of these costs. As a result, FIELD has become a major operating expense driver for the School, and has placed a new strain on the operating budget.”

This year, Melnick predicted that operating costs will rise further with higher expenses due to employee compensation, financial aid, the expansion of its executive education facilities, and the introduction of a new online learning platform, HBX.

Fiscal 2013 revenue at Harvard Business School

Fiscal 2013 revenue at Harvard Business School

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