Wharton Dean Says Philanthropic Support For The B-School Has Fallen

Wharton School Dean Erika James says new donor contributions to the school has declined due to tension over antisemitism and freedom of speech on campus.

Despite the decrease, James told the Financial Times in an interview  that the shortfall has been balanced by increased tuition revenue and income from other school activities. Wharton boasts the highest annual tuition for its MBA program in the world, with 2024-2025 tuition and fees coming to $89,500, some $10,000 more than the annual MBA tuition at Harvard Business School. The total annual estimated cost of a Wharton MBA, including room and board, is now $127,514 (see What It Costs To Get An MBA From A Top School).

Ahead of the university’s financial year which ends June, she acknowledged a dip in donations but remained optimistic about philanthropy’s recovery, emphasizing that Wharton has “weathered the storm.” James did not reveal the size of the drop in donor funding. Unlike Harvard Business School, which is far more transparent with its financials, Wharton does not publicly disclose its annual budget nor other financial data.

DEAN REACHING OUT TO ALUMS FOR MORE SUPPORT

Wharton Dean Erika James

The difference in costs is even greater than the price tags suggest because Wharton isn’t nearly as generous as Harvard in awarding fellowships to bring the actual cost of its MBA down. In fiscal 2023, 47% of Harvard’s MBA students received a need-based scholarship from the school with awards ranging from $2,500 to $76,000 per year. The average annual award was nearly $45,000. HBS began providing scholarships to cover the total cost of tuition and course fees for roughly 10% of students with the greatest financial need last year.

In response to the funding challenge at Wharton, James has initiated a new series of dialogues with donors to reinforce Wharton’s dedication to “creating knowledge useful to society” and has increased the focus on courses dealing with conflict management, productive engagement, and civil discourse.The backdrop to these developments includes a broader controversy involving the University of Pennsylvania.

The university faced criticism and concerns from donors about antisemitism on campus, particularly in relation to a Palestinian literature festival. This has led to threats from some of Wharton’s alumni, who have significant influence in finance and investment sectors, to retract funding. Critics, including Wharton Board of Advisors Chair Marc Rowan of Apollo Global Management and other prominent businessmen and politicians, have been vocal in their opposition.

WHARTON BOARD OF ADVISORS CHAIR TO DONORS: ‘CLOSE YOUR CHECKBOOKS’

A 1985 Wharton MBA graduate, Rowan believed that University President Liz Magill failed to fully condemn the beliefs of some speakers at a Palestine Writes Literature Festival who called for the elimination of Israel. Little more than a day after Wharton’s Board of Advisors demanded the resignation of Magill in December, she tossed in the towel and gave up her job.

Rowan has been especially vocal, publicly urging donors to “close their checkbooks” to withhold donations to the university. “It is time for the trustees to begin moving UPenn in a new direction,” Rowan wrote. “Join me and many others who love UPenn by sending UPenn $1 in place of your normal, discretionary contribution so that no one misses the point.”

James noted that existing donors with prior commitments to Wharton have continued their support. The situation reflects broader dynamics affecting academic institutions and their relationships with donors, amidst evolving debates over freedom of speech and the responsibility of universities to maintain inclusive and respectful campuses.

DON’T MISS: MEET WHARTON’S MBA CLASS OF 2025 or PENN PRESIDENT RESIGNS AFTER PRESSURE FROM WHARTON’S BOARD OF ADVISORS