The fact that the $350 million donation from the Morningside Foundation to Harvard's School of Public Health is unrestricted will allow the university to direct the fund to where they are most need. The university has already stated that is will be used to support increased financial aid for students, loan forgiveness for graduates who working in under served areas, new classrooms and new cutting edge research, not supported by traditional grant funding.
Harvard produces some of the most successful people in the country. It only accepts the best and the brightest into it's school. It is used to getting generous donations so they know how to best use this large sum of money. Will they put some of it towards their sporting program, probably but they will also use it for other good educational things.
Harvard will do good deeds with this massive endowment because they have a record of doing great things with their funds throughout history. The money is going to medical research. This will help find cures and provides jobs for researchers at the school and by extension, outside of the school as well.
The $350 million that Harvard just received will do what donations always do at big institutions; it will go into the Harvard endowment fund to generate interest. The capital itself will go nowhere and be invested for 'future use'. This basically means that the money won't be used at all. Ever.