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Why Start a Foundation?

Community, Giving, Money Matters

What is the best way for you and your family to create a lasting legacy? Starting a foundation is one answer. Whether it’s the right answer is what we help our clients fully explore. Heading that effort is Jeanne Goussev, head of Fiduciary Services here at LNWM. Last week, Jeanne was featured in the Puget Sound Business Journal’s Non-profits and Philanthropy issue, in an article by Melissa Crowe. In that, Jeanne explained that foundations are a way to connect family with legacy, and do not have to be the only answer. Some people back donor-advised funds, says Jeanne, along with their own foundation. For more on Donor-Advised funds, read this post by LNWM’s Brian Whitaker.

Managing an Endowment: Three Key Principles

Community, Giving, Money Matters

Managing an endowment means balancing competing needs and goals. How to do that effectively is the topic of an article by Bob Moser, LNWM CEO, and Gino Perrina, LNWM CIO, published in the Puget Sound Business Journal this week. Here is what Bob and Gino advised:

“Many nonprofits rely on endowments as a critical component of their financial strategies. Distributions from endowments can be counted on for general operating expenses or for specific uses, such as capital spending, program expansion or, in the case of colleges and universities, devoting funds to provide scholarships.

But in times of financial uncertainty, the stability of an endowment can seem to slip away. For finance committee members of nonprofits, now is the time to evaluate if you’re using your endowment effectively, and adjust if needed.

In principle, endowments are long-term pools of capital that shouldn’t be negatively impacted when investment returns are expected to decline in the near term. The reality, however, can paint a different picture, especially when an organization sets its distribution level — or draw — too high.

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