The Role of an Endowment:

Philosophies and Considerations

  • January 2023
  • 55 minutes
  • Governance & Policy

Course Description

A critically important asset for many nonprofit organizations is their endowment. For many institutions this pool of financial assets is the difference between fulfilling their missions and being forced to lower their aspirations or even ceasing to operate. This session will examine the purpose of an endowment and how it should deliver on the mission in the long term, why it is important to create a return objective and considerations your institution should take into account when developing one, as well as how to develop a risk profile for your portfolio. 

  • Differentiate between the three different types of endowments and their individual purposes
  • Define intergenerational equity and its importance to the longevity of an institution
  • Identify the key factors that go into determining a risk profile for your organization
  • Define the illiquidity premium
  • List the key decision points in the formulation of a spending policy

Course Information:

  • Cost: Free
  • Program Level: Intermediate
  • Duration:  55 minutes
  • CPE Credits: 1.0
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Instructor

tim.yates

Timothy T. Yates, Jr.

President and CEO
Commonfund OCIO