Couple of questions.
I’m assuming risk tolerance between the two is case dependent. Is that true?
I’ve noticed endowments are legally long term and a foundation can be short term or long term. So, if an endowment were to be compared to a short term foundation, the endowment would most likely have a higher risk tolerance.
I’ve noticed that foundations preserving the real value is a desire whereas for a endowment it is a requirement which relays into a higher risk tolerance for foundations.
Secondly, i’ve noticed for risk tolerance certain items are not including with foundations risk tolerance compared to endowments risk tolerance. For example, smoothing rules are not explicitly written about with foundations but I’m assuming foundations could use smoothing rules as well to increase their risk tolerance? And other items as well such as the reliance on operating budget, contributions and stable funding. Any of these are fair topics as well for foundation risk tolerance? Again, these items have come up on endowment questions but not on foundation questions but I’m assuming they overlap.
Thanks,
Much appreciated.