Imagine a foundation with $10 million in assets. To meet the 5% distribution requirement, it must allocate $500,000 each year. While foundations take great care in managing their grant distributions, what happens to the remaining $9.5 million? This section will help you understand how foundations manage investments, including who oversees the money and key fiduciary principles. Smart investing is essential for both perpetual and time-limited foundations to maximize grant-making funds. You will learn how a board’s understanding of financial oversight is crucial and how asset allocation reflects your foundation’s values. Investment choices influence risk and return, and impact investing aligns your endowment with your mission. Program-related investments can further advance your goals. Overall, understanding these options enables informed financial decisions.
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