Report on endowment management published
A report published by the Association of Charitable Foundations explores the ways charitable foundations are managing their assets to maximise their impact.
‘The governance and financial management of endowed charitable foundations’, by Richard Jenkins, was written in response to an emerging interest in asset management at foundations including PHF, and is the first research of its kind in the sector. The report finds that, in this tough economic climate, foundations have been thinking independently and creatively, but suggests that by tackling misunderstandings they could further improve performance.
Richard Jenkins commented: “Foundations already provide significant charitable funding and only trustees can decide what is the right way to achieve their aims. But dispelling false notions – for example that trustees have to defer to industry specialists, or that boards must in all circumstances preserve the endowment, or about what appropriate investment benchmarks might be – could lead trustees to use their assets more boldly.”
Research was conducted through a series of interviews and case studies to show the different ways organisations have implemented common principles in order to get the best value for their charitable aims. The publication indentifies 900 endowed foundations in England and Wales with income over £500,000. With collective assets of £48.5bn – nearly half the Voluntary Sector assets of the UK as a whole – they are together responsible for £2.3bn charitable spending each year.
The report has been written for those who run endowed charitable foundations, both trustees and staff, and those who advise them or have an interest in the sector. The publication is aimed at non-expert readers.
The Foundation is one of six funders who have supported the research documented in the report. Other funders include Esmée Fairbairn Foundation, The Joseph Rowntree Charitable Trust, The Nuffield Foundation, Trinity College Cambridge, and Trust for London. PHF’s Director of Finance and Resources, Lucy Palfreyman, was a member of the steering group.