Lots of buzz in my world today about this. Let's break it down.
A sea change: the ⁦ rocks the non-profit world with⁩ plans to borrow to spend as much as 10% of its assets to address the crisis - far more than the usual 5%. ⁦⁩ ⁦⁩ ⁦⁩ w
Incredible leadership by and actually issuing bonds and going into debt to help support nonprofits during #COVID19, and 4 other leading foundations following their lead. Inspiring.
Congratulations to the visionary of the for getting US foundations to increase their spending in these exceptional times - and to for joining #ProjectWanda. #COVID19
Increase spending during crisis or preserve endowment? Why not both? will borrow $1B thru 30-, 50-yr bonds, to spend over next 2 yrs. to borrow $125m. Mellon, Kellogg fndtns to increase spending by around half.
SCOOP: Ford Foundation selling $1 billion in bonds so it has more money to hand out in this year of crisis. and me.
The is going to almost double its grantmaking over the next two years by issuing $1B debt against its endowment, and others are joining.
New times these: Ford, MacArthur, Duke, and Kellogg foundations will pledge on Thursday to increase their giving by at least $725 million...by borrowing money. They’re going to issue bonds instead of drawing beyond the usual 5% from their endowments.
Leading Foundations Pledge to Give More, Hoping to Upend Philanthropy
"To raise $1B, Ford is preparing to issue bonds, a financial maneuver extremely rare among nonprofit groups. Four other leading foundations will pledge to join with Ford and increase their giving by at least $725 million." : leadership.
"This is unprecedented for us, but these are unprecedented times."––MacArthur President on today's announcement to help nonprofits with over $1.7 billion in support during a difficult time. #PhilanthropyJoinsForces via
called it a couple of weeks ago. Big Philanthropy, led by , steps up.
Important read for #philanthropy: “Borrow money, spend it quickly and inspire others to follow...” via ⁦⁩ ⁦⁦
You can only stand back and applaud foundations that are leaning in, and lending in, to the moment when the country and its civil society need them most. 🙏⁦⁩ ⁦
Behind 's leadership, the is increasing its grantmaking, not by boosting spend from endowment but through borrowing. Also joining: Maybe good idea for universities too?
With major foundations using borrowing to effectively increase the rate at which they tap their endowments, perhaps universities should follow suit?
Want to applaud and other foundations for taking this step. Leading Foundations Pledge to Give More, Hoping to Upend Philanthropy
The Ford Foundation is borrowing $1 billion to increase its expenditures at this key time. Universities can learn from this case! Have the U.S universities revised down their expectations of their permanent income? If not, listen to that Euler equation!
PFOMO - Philanthropy Fear of Missing Out; a new emotion foundations should feel if they are not doing more of this. #philanthropy #COVID19 #BLM
🇺🇸 This is a significant shift in non-profit giving
“By using borrowed money, foundations would go into debt but wouldn’t erode their endowments”. Please explain.
If you think America has no more heroes, you don't know
Leading Foundations Pledge to Give More, Hoping to Upend Philanthropy. One to watch: where ⁦⁩ ends up on this after the dust settles and the short-term market rationale erodes further.
Maybe the philanthropic foundations can target their aid to the truly needy (unlike government legislation written largely by corporate lobbyists). via
This. Social bonds on steroids, to enable shift upward in foundation giving in these times of need. Well done: . What options for universities? Leading Foundations Pledge to Give More, Hoping to Upend Philanthropy
A bold, creative bet by the (and others) that it can borrow money at low rates and earn more over time by investing their endowment. Either way, they are spending today at the expense of tomorrow. #philanthropy
Very curious to see how the 30 year bonds from end up getting priced: Borrowing rather than just spending down investment funds makes intuitive sense to me.
Large foundations tend to be good money managers, so it's not surprising that they'd take advantage of basically zero interest rates. Cool that they're using this to increase their giving.
Leading Foundations Pledge to Give More, Hoping to Upend Philanthropy, a splurge financed in part by issuing debt.
Glad to see this movement to put endowments to work NOW. Thanks to ⁦⁩ for this #leadership via
Can country governments also pledge to do more? Philanthropy cannot compensate for state failures. Leading Foundations Pledge to Give More, Hoping to Upend Philanthropy
Leading Foundations Pledge to Give More, Hoping to Upend Philanthropy
Well-done ! This is exactly what should happen when the needs are so great and interest rates are so low and one doesn't want to sell investments into soft markets. Leading Foundations Pledge to Give More, Hoping to Upend Philanthropy