From 2013 AM Paper:
The fact that the Foundation is expected to receive annual $2M contribution increases its risk tolerance (Q 6A).
However, Q 6D says that if the contributions stop, that does not affect the return objective.
Don’t we assume that return objective is influeced by risk tolerance? If risk tolerance is increased with the contributions, the contributions stop = reduced risk tolerance, which leads to reduced return objective.
I guess I’m missing something here… Cheers
Tolerance = ability.
Just because it’s ability to absorb risk has increased, does not mean that the return objective should change, neither does the risk exposure. Foundations have specific targets and objectives to fund, it does not have a funding surplus on it’s priority list.
No, the return objective is independent of risk tolerance.
foundations are supposed to run forever. but that is second to carrying out the activities which they were setup to do.
so…
extra money,means you can take more risk.
no extra money, return requirement doesnt change.