Endowment Spending Amid Record Inflation

Inflation is having a moment. After laying low and playing a minor role in institutional financial decisions for decades, inflation has soared, dominating headlines and raising expectations for future costs. In addition to its impact on financial markets and investment portfolios, inflation increases the costs of delivering the nonprofit mission and makes it more challenging […]

May 2023

Determining the Right Price: A Wealth Management Cost Framework for Families

Families of wealth are always curious about wealth management costs and often want to benchmark those expenses against their peers. Costs are an important consideration when devising an overall wealth management strategy. What is the right price and how is it determined? In some cases, a lower cost approach may not be sufficient to do […]

April 2023

Endowment Radar Study 2022: A Dynamic Role

Endowment Radar is a methodology that Cambridge Associates developed to visually evaluate the endowment’s role in the college and university enterprise. The four components of Endowment Radar measure the endowment’s role in supporting the annual budget (Endowment Dependence), pricing strategy (Endowment Support-to-Financial Aid), balance sheet health (Endowment-to-Debt), and financial sustainability (Net Flow Rate). Our 2022 […]

March 2023

Sustainable and Impact Investing 2022: Insights and Perspectives

Overview Of the 144 Cambridge Associates clients that responded to the 2022 survey, 93 reported engaging in sustainable and impact investing (65%)—up 4 percentage points relative to 2020 and a significant increase of 29 percentage points relative to our 2018 survey results. Foundation and college & university respondents have the highest rates of integration of […]

January 2023

The Work of a Lifetime: Spend-Down Funds

An increasing number of institutions and families are electing to spend down their assets during a limited time period. Why? Some causes—such as climate justice—feel urgent to donors and they respond with more immediate action. Other donors believe greater financial support today through a spend-down fund compounds their impact, leading to better outcomes in totality compared to providing […]

January 2023

Solvency Beyond Relief: Unlocking the Full Potential of SFA Program Assets

The American Rescue Plan Act of 2021 (ARPA) included substantial relief funds for the most troubled US multiemployer pension plans through its Special Financial Assistance (SFA) program. The SFA program was created to help seriously underfunded multiemployer pension plans maintain solvency through 2051. Multiemployer pension plans receiving SFA funds now have a unique opportunity to […]

November 2022

Endowment Governance: Aligning Foundation Investments and Mission

Where Do We Start? An institution considering initiating or adding to a mission-aligned investing strategy must first define its objectives. Next, it should evaluate the available approaches and tools on portfolio structure, impact, and performance expectations. Any planned changes must be balanced with the need to continue support for ongoing operations and grantmaking activities. Drawing […]

November 2022

Investment Governance: Creating a Framework That Works for a Family

Investment governance plays a critical role in the ability of families with substantial wealth to define their financial objectives and formulate a strategy for a diversified portfolio. Investment strategy—including asset allocation, selection and monitoring of investments, and risk management—demands a large amount of attention from families and their advisors. While investment governance is at least […]

September 2022