Rethinking the Management of Foundation Endowments
<p>In the wake of the recent financial and economic crisis, many foundation executives and investment committees are reassessing their approach to endowment management. In his new essay, <a href="/publications/publication/2010/mar/rethinking-management-foundation-endowments">Rethinking the Management of Foundation Endowments</a>, Commonwealth Fund executive vice president and COO John E. Craig, Jr., reports on the impact the recent turmoil has had on foundation endowments, and offers lessons from the crisis, and earlier ones, that could help boards and investment committees avoid mistakes in the future.</p>
<p>Craig also discusses the strengths and weaknesses of alternative models that foundations can use to manage their endowments.</p>
<p>"Every crisis presents opportunity, and many foundations should at this time take a hard look at their basic structure for managing their endowment," Craig writes. "In doing so, they should aim for accountability on the part of each major player sharing responsibility for the endowment, and for a management model likely to make the most of their resources while protecting against major risks."</p>