Investment Policies of Foundations, The

Investment Policies of Foundations, The

Ralph L. Nelson
Copyright Date: 1967
Published by: Russell Sage Foundation
Pages: 136
https://www.jstor.org/stable/10.7758/9781610446730
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  • Book Info
    Investment Policies of Foundations, The
    Book Description:

    Focuses on the 133 largest foundations endowed by individuals or families, each of which in 1960 held assets of more than $10 million. While representing less than one percent of the total number, they account for the majority of income, endowment, and spending of all foundations. The author describes the economic dimensions of foundation activities in the context of the general economy and private philanthropy. He examines the process by which the foundations were established, when and how they received initial endowments, their investment patterns over a period of years, and the policies governing investment of their endowed funds.

    eISBN: 978-1-61044-673-0
    Subjects: Business, Sociology

Table of Contents

  1. Front Matter
    (pp. i-vi)
  2. Table of Contents
    (pp. vii-xiv)
  3. 1 INTRODUCTION AND SUMMARY OF FINDINGS
    (pp. 1-21)

    This chapter serves two purposes. First, it introduces the reader to some of the economic dimensions of philanthropic foundations, and places them in the contexts of the general economy and of private philanthropic activity. Second, it summarizes the major research findings of the study, preparing the reader for the detailed substantive chapters that follow.

    Philanthropic foundations in one form or another have been known throughout recorded history. They enjoyed some prominence in the classical civilizations of Greece and Rome and played significant roles in the Renaissance and preindustrial England. Foundations in their present form, however, are primarily creatures of modem...

  4. 2 LARGE ENDOWED FOUNDATIONS: ESTABLISHMENT AND GROWTH
    (pp. 22-42)

    This is the first of three chapters that deal with the large endowed foundations. It examines the time periods in which these foundations were established, when they received their endowments, and how they grew in size from the date their endowments were initially received. It also examines the broad relation between their income and spending and other factors that bear upon the level of their philanthropic activities and its growth over time. Its purpose is to provide the historical and economic context for the more direct examinations of investment policy presented in the two chapters that follow.

    A financial history...

  5. 3 LARGE ENDOWED FOUNDATIONS: INVESTMENT PATTERNS, TRENDS, AND PERFORMANCE
    (pp. 43-83)

    The large endowed foundation receives its initial endowment commonly in the form of assets that the donor has held for a long time. These holdings are most frequently the common stock of the company or companies in which the donor was active and through which he had built his fortune. Circumstances occasionally permit a donor to accumulate cash or a diversified portfolio of investments for transfer to his foundation but this is the exception.

    In acting to endow his foundation, conceivably the donor could liquidate his investments and donate the cash thus realized, which the foundation could then invest in...

  6. 4 LARGE ENDOWED FOUNDATIONS: INVESTMENT POLICIES AND PRACTICES
    (pp. 84-124)

    This chapter describes the ways in which large foundations have provided for the making of investment policy and for changing policy. It describes how they are organized to accomplish these objectives and discusses the kinds of mechanisms they have developed. The investment emphasis that they have had in the recent past is examined, as well as the pattern of portfolio change that has been adopted to achieve this emphasis.

    Unlike the objective financial data that underlie the two preceding chapters, most of the information presented in this chapter could be obtained only from the foundations themselves. As indicated above, it...

  7. 5 COMPANY-SPONSORED FOUNDATIONS
    (pp. 125-146)

    A company-sponsored foundation is a foundation that has been organized by a corporation to conduct all or part of the corporation’s philanthropic program. As with other kinds of foundations, it is usually a nonprofit corporation organized to support cultural, scientific, and educational activities. Contributions by the corporation to its foundation are deductible from corporate income for tax purposes, in the same manner as contributions to any other tax-exempt philanthropic organization. The policies of the company-sponsored foundation are controlled by directors or trustees who are usually also officers and directors of the sponsoring corporation.

    As a financial intermediary between the donor...

  8. 6 COMMUNITY FOUNDATIONS
    (pp. 147-162)

    This chapter is largely descriptive in content. Its objective is to sketch briefly the size and growth of community foundations and to measure the importance of investment income in the support of their giving programs. It also provides information about investment policy arrangements and makes a limited examination of investment patterns and performance. No attempt was made to do the kind of detailed survey and analysis that was done for the large endowed family foundations. Nor was it possible to draw upon published financial records. The Patman Report, the most comprehensive source of detailed financial data presently available for foundations,...

  9. Appendix I QUESTIONNAIRE SURVEY: DESCRIPTION AND ANALYSIS
    (pp. 165-168)
  10. Appendix II INVESTMENT POLICY QUESTIONNAIRE: PHILANTHROPIC FOUNDATIONS
    (pp. 169-173)
  11. Appendix III PROBLEMS IN ESTIMATING THE PERIODS OF ORIGIN OF THE ENDOWMENT FUNDS OF THE 50 LARGEST FOUNDATIONS
    (pp. 174-176)
  12. Appendix IV COMPARISON OF FINANCIAL REPORTING ON ANNUAL REPORTS AND INFORMATION RETURNS (FROM 990-A)
    (pp. 177-180)
  13. Appendix V TABLES
    (pp. 181-196)
  14. INDEX
    (pp. 197-203)