Starvation Diet

A friend who serves on a nonprofit board asked me whether her organization was drawing enough from its endowment each year. “Probably not,” I answered. Then she described her organization’s endowment spending policies. I was right. Endowment spending policies are...

THIS is the Rainy Day!

Twice in recent months, I’ve gotten into heated discussions with nonprofit leaders about the spending rate from their endowments. As you may know, the spending rate is the formula that determines how much an organization pulls from its endowment each year. The federal...