Reconsidering the philanthropic foundation minimum payout policy under a “new normal”

Zvika Afik and Hagai Katz

Journal of Policy Modeling, 2019, vol. 41, issue 2, 219-233

Abstract: With the increasing salience of foundations in many policy fields, and recent changes in market conditions, policies towards foundations designed decades ago seem outdated. In this article we suggest reassessing foundation payout minimums. To examine the impact of payout rates on grantmaking foundations lifespan and performance under “new normal” economics, we simulate multiple foundations lifecycles using Monte Carlo methods in diverse capital market conditions, with varied investment and payout strategies.

Keywords: Grantmaking foundations; Payout; Policy; Monte Carlo simulations; Investment (search for similar items in EconPapers)
JEL-codes: C53 H21 L31 L38 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0161893818301467
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:41:y:2019:i:2:p:219-233

DOI: 10.1016/j.jpolmod.2018.09.004

Access Statistics for this article

Journal of Policy Modeling is currently edited by A. M. Costa

More articles in Journal of Policy Modeling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().