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Faster charity
Charitable organizations typically distribute only 5 percent of their financial assets each year—a sum well below their investment returns, which averaged more than 12 percent in the last decade. Along with new contributions, these returns have allowed nonprofit groups of all types to increase the size of their endowments dramatically. Yet because foundations and nonprofit organizations are paying out less than they are taking in, they are failing to maximize the benefits they can provide to society.
The take-away: In this opinion piece, former senator Bill Bradley argues that foundations and nonprofit organizations need to distribute their money sooner rather than later to deliver social benefits equivalent to the value of the donations they receive.
Articles provided by The McKinsey Quarterly
© 1992-2003 McKinsey & Company, Inc
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