i am doing an old morning exam from 2013 and got tripped up on a question that asked about liquidity requirement for foundation when a yearly contribution stops occurring. i see that for a foundation the liquidity requirement is anticipated cash needs in excess of contributions made to the foundation. I am wondering if this same concept will apply to endowments? it does not say so in the reading but I can’t see why it would not be the same. if an endowment was receiving a yearly contribution and then it stopped would that increase its liquidity requirement just like a foundation?
its the same concept for everything, bank, foundation, endowment and individuals. Its part of cash flow.
Liquidity requirements are always given to you.