Carnegie's Kim Lew Voices Concerns on Low-Return Environments for Foundation Endowments
U.S. charitable foundations are facing tough choices about eating into their endowments or cutting activities, after their investment returns plunged to zero last year and advisers warned they are unlikely to meet their financial targets.
New data show that while foundations increased their spending in 2015, their financial position was undercut by weak stock markets, ultra-low interest rates and disappointing returns from hedge funds and other alternative investments.
The result could be increased pressure on public services, if foundations are forced to cut back on their activities, according to Bill Jarvis, chief executive of Commonfund Institute, which gathered the data...