A Big Problem That Threatens Your Endowment Fund

If you are a director, donor or staff member of a charitable foundation or endowment fund, you need to be aware of a unique type of investment risk not shared by individual investors. Once identified it can be mitigated, but very few organizations ever talk about, let alone address the issue.

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2. Does your organization have an endowment or charitable foundation?
3. Are the endowment funds invested in a typical asset allocation plan?
4. You could have a problem
5. Guess who else invests their assets in a typical asset allocation plan?
6. Your individual donors
7. And your grantors
8. What happens during an economic and market decline?
9. Demand for your charitable service increases
10. While the ability of your donors and grantors to help has been diminished
11. And your endowment is least able to provide support
12. This is an enormous risk that very few non-profit boards talk about
13. This is an enormous risk that very few non-profit boards talk about
14. The problem has three main challenges
15. 1) Break the “donor correlation” to preserve the ability of your endowment to support your mission when it is most needed.
16. 1) Break the “donor correlation” to preserve the ability of your endowment to support your mission when it is most needed. 2) Preserve the growth potential of your endowment.
17. 1) Break the “donor correlation” to preserve the ability of your endowment to support your mission when it is most needed. 2) Preserve the growth potential of your endowment. 3) Train and educate new board members to maintain consistent discipline over time.
18. This isn’t rocket science
19. This isn’t rocket science But it’s not easy either
20. We can help you in a couple of ways
21. 1) We can consult with your board, finance committee and/or investment advisor to write an investment plan that helps account for these risks in advance.
22. 1) We can consult with your board, finance committee and/or investment advisor to write an investment plan that helps account for these risks in advance. 2) We can manage part or all of your endowment or foundation assets.
23. 1) We can consult with your board, finance committee and/or investment advisor to write an investment plan that helps account for these risks in advance. 2) We can manage part or all of your endowment or foundation assets.
24. PLC ASSET MANAGEMENT We can help. Contact us today to learn more: 800.270.4551 www.plcasset.com pcrook@plcasset.com Strictly intended for individuals residing in the states of AZ, CA, IA, KS, OR and WA. No offers may be made or accepted from any resident outside these states due to various state regulations and registration requirements regarding investment products and services. Patrick Crook is a Registered Representative and Investment Adviser Representative with/and offers securities and advisory services through Commonwealth Financial Network, Member www.FINRA.org/www.SIPC.org, a Registered Investment Adviser. PLC Asset Management, 833 NW Buchanan Ave, Corvallis, OR 97330. (541)753-1808.