Foundation vs Endowment

Foundations do not need to balance the needs of future generations (though they usually seek to maintain purchasing power. This is in the Chen Topic Test.

Do Endowments need to balance the needs of future generations though? I am pretty sure that is the goal of them (perpetuity) but I can’t find this anywhere…

Yes,

D) ENDOWMENT 1 Return Objective:

(To maintain the real value of the investment portfolio

(2) To support [institution/University/Hospital]’s operating expenses over longer term in perpetuity.

(3) Required return: (1+annual spending)(1+Inflation rate)(1+mgmt fee)-1

(4) Spending rule: based in formula:

How come the curriculum says Foundations usually do this but the topic test says it’s not a requirement. Of course it’s not a requirement nothing is a requirement. Shitty question