HBS finished fiscal year 2011 with a stronger financial performance than expected despite the lingering effects of the recent recession. Revenue for the year July 1, 2010, to June 30, 2011, exceeded the budget by nearly 9 percent, totaling $509 million, according to the 2011 HBS Annual Report.

The School’s two main revenue generators, Executive Education and Harvard Business Publishing, led with strong revenue growth. Driven by newly launched open-enrollment courses and the first increase in custom program participation since the onset of the recession, Executive Education revenue grew by $19 million to $132 million. Although Harvard Business Publishing experienced planned increases for expenses to boost its technology platform and expand its sales organization, revenue grew by $17 million to $152 million. Together, Executive Education and publishing contribute more than half of the School’s operating revenue.

Gifts from alumni and friends are another major source of income, and 2011 proved to be a highly successful year for fundraising. The total dollar value of new gifts increased by $30 million over the year before, reaching $89 million. In addition, unrestricted gifts from reunion classes and annual giving grew by $4 million to $17 million. Unrestricted gifts provide funds to support innovative programs that are not endowed and new strategic priorities for research and teaching.

While remaining on sound financial footing, the School also funded ambitious education and research initiatives, including the new FIELD course required of all first-year students. And it increased investment in capital projects. For example, $16 million went to renovating the former WGBH building at 125 Western Avenue, now Batten Hall, to house the Harvard Innovation Lab and 10 FIELD classrooms.

Looking ahead, the outlook for fiscal 2012 is for continued revenue growth but at a more modest pace.


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