Are foundations and endowments both required to balance the interests of current and future beneficiaries ?
In the CFAI curriculum, Reading 15 section (Foundations) 3.1.2 states that ‘‘Such a policy, if successful, keeps spending constant in real terms, on average over time, achieving what is sometimes called intergenerational equity or neutrality: an equitable balance between the interests of current and future beneficiaries of the foundation’s support.’’
Reading 15 EOC 6C answer states ‘‘JCHE’s (Endowment) long-term spending policy should balance the needs of current and future beneficiaries’’
However, in the CFAI Practice Questions, Edward Chen Case Scenario question 3 guideline answer says that ''The foundation has no obligation to balance the needs of current and future beneficiaries. ''
Is there a mistake somewhere or am I missing something?