Oh interesting, I didn’t know that! Do you know what %’s roughly (5 vs 20?) E.g. I know that foundations have a minimum they need to withdraw in the US (5%), and it’s plausible they should be giving more.
Depends on state law in the US, but often linked to rolling average investment returns because the idea is that an endowment is permanent. Generally, organizations with endowments are public charities not private foundations, so the 5 percent minimum doesn’t apply.
Orgs not desiring those restrictions should avoid using the term “endowment” in their pitch and should use terms that convey that the monies raised will be time-unrestricted.
Oh interesting, I didn’t know that! Do you know what %’s roughly (5 vs 20?) E.g. I know that foundations have a minimum they need to withdraw in the US (5%), and it’s plausible they should be giving more.
Depends on state law in the US, but often linked to rolling average investment returns because the idea is that an endowment is permanent. Generally, organizations with endowments are public charities not private foundations, so the 5 percent minimum doesn’t apply.
Orgs not desiring those restrictions should avoid using the term “endowment” in their pitch and should use terms that convey that the monies raised will be time-unrestricted.