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Foundation Payout Policy in Economic Crises

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The old bromide--whatever goes up must come down--applies as much to markets as to objects tossed in the air, which is to say that while economic downturns may not be wholly predictable, they are absolutely inevitable. That inevitability poses a challenge for philanthropic organizations whose financial resources are in an endowment: when a downturn happens, should they reduce spending to preserve capital for future grantees and beneficiaries, or should they maintain spending to preserve the work of present grantees and beneficiaries?

Author: Larry Kramer


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