The HBS 2007 Annual report described the mix of revenue sources in the School's financial model as follows:

"More than 50 percent of the School's revenue comes from Harvard Business School Publishing (HBSP) and Executive Education, and thus originates in sales of products and services that are highly competitive. Gifts to HBS, through distributions from the endowment and revenue from unrestricted current use giving, account for nearly a quarter of revenue. Nineteen percent of the School's revenue comes from MBA tuition and fees.

"Fiscal 2007 was the first time in the School's history that endowment distributions and current use gifts contributed a larger percentage of revenue than MBA tuition. Reflecting the success of the School's campaign earlier in this decade and Harvard University's extraordinary investment returns, the endowment has become a major source of funding for the School's operations. In addition, unrestricted giving by HBS alumni and friends has set new records in each of the past two years. Unrestricted gifts provide flexible funding for new research and teaching initiatives.

"Unlike other Harvard University schools, faculty at HBS do not seek grants from external sponsors such as government agencies, foundations, and corporations. Instead, their research is funded primarily by the School with revenue from HBSP and Executive Education. This business model allows faculty to pursue the research opportunities they believe have the greatest potential to create new knowledge and advance the practice of management.

"In a self-sustaining cycle, Executive Education and HBSP disseminate the knowledge produced by the faculty through programs and through periodicals, books, cases, and eLearning products, respectively, enabling the School to influence the practice of management on a global scale, while generating significant operating margins. These margins complete the cycle by providing vital funding for the faculty's research."