A Capital Idea: Total Foundation Asset Management and the Unified Investment Strategy

Jan 01, 2002 | by
  • Description

This paper presents the perspective that the purpose of foundations is not simply to engage in grantmaking, but rather to invest in the creation of social value. The idea is also proposed that available foundation assets for supporting this process of social value creation should be viewed as not simply their grant making ability, but their overall investment strategy for both core assets and philanthropic investments. A strategy for achieving maximum social impact is presented, and the implications of that strategy are discussed. The paper's appendix includes an extended discussion by two foundation trustees regarding the question of fiduciary responsibility.