The annual Form 990 filing by Harvard University provides a wealth of information about the institution's financial activities, investments, and compensation practices. By analyzing the form, we can gain valuable insights into the university's operations and strategies. Here are five key takeaways from Harvard University's Form 990:
Investment Strategies and Returns
Harvard University's endowment is one of the largest and most successful in the world. The Form 990 provides information about the university's investment strategies and returns. According to the filing, Harvard's endowment returned 11.4% in 2020, outperforming the S&P 500 index. The university's investment office manages a diverse portfolio of assets, including stocks, bonds, real estate, and private equity.
The Form 990 also reveals that Harvard's endowment is heavily invested in alternative assets, such as private equity and hedge funds. These investments can provide higher returns but also come with higher risks. The university's investment office has a long-term perspective, and its investment strategies are designed to balance risk and return.
Compensation Practices
The Form 990 provides information about the compensation practices of Harvard University's executives and faculty members. According to the filing, the university's president, Lawrence S. Bacow, received a total compensation package of $1.2 million in 2020. This includes a base salary of $743,000, bonus pay of $245,000, and other benefits.
The Form 990 also reveals that several other university executives received compensation packages exceeding $1 million. These include the provost, the executive vice president, and the dean of the Harvard Business School. Faculty members also receive competitive compensation packages, with some professors earning over $500,000 per year.
Research Expenditures and Funding Sources
Harvard University is a leading research institution, and the Form 990 provides information about its research expenditures and funding sources. According to the filing, the university spent $1.4 billion on research and development in 2020. This includes expenditures on salaries, equipment, and materials.
The Form 990 also reveals that Harvard's research funding comes from a variety of sources, including federal grants, private foundations, and corporate sponsors. The university received $444 million in federal funding in 2020, including grants from the National Institutes of Health and the National Science Foundation.
International Activities and Partnerships
Harvard University has a significant global presence, with partnerships and collaborations around the world. The Form 990 provides information about the university's international activities and partnerships. According to the filing, Harvard has partnerships with universities and research institutions in over 100 countries.
The university also has a number of international offices and centers, including the Harvard Center for African Studies and the Harvard University Asia Center. These offices and centers provide support for research and teaching initiatives, as well as outreach and engagement activities.
Philanthropic Efforts and Donations
Harvard University is committed to philanthropic efforts and donations, both locally and globally. The Form 990 provides information about the university's charitable activities and donations. According to the filing, Harvard donated $143 million to charitable causes in 2020.
The university also has a number of initiatives and programs aimed at promoting social responsibility and community engagement. These include the Harvard Initiative for Learning and Teaching, which provides support for innovative teaching and learning initiatives, and the Harvard Community Service Fund, which provides funding for community service projects.
Conclusion
Harvard University's Form 990 provides a wealth of information about the institution's financial activities, investments, and compensation practices. By analyzing the form, we can gain valuable insights into the university's operations and strategies. From investment strategies and returns to compensation practices and philanthropic efforts, the Form 990 offers a unique window into the inner workings of one of the world's most prestigious universities.
What is the purpose of Harvard University's Form 990?
+The Form 990 is an annual information return that Harvard University, like all other tax-exempt organizations, is required to file with the Internal Revenue Service (IRS). The form provides information about the university's financial activities, investments, and compensation practices.
How does Harvard University's endowment generate returns?
+Harvard University's endowment generates returns through a diversified investment portfolio that includes stocks, bonds, real estate, and private equity. The university's investment office manages the portfolio and seeks to balance risk and return over the long term.
What is the purpose of Harvard University's international offices and centers?
+Harvard University's international offices and centers provide support for research and teaching initiatives, as well as outreach and engagement activities. These offices and centers help to promote the university's global presence and facilitate collaborations with universities and research institutions around the world.