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5% isn't small! A charity is typically funded by the returns from investing some pot of money. The stock market returns on average about 7% a year, and infla
by auntienomen 9y ago
5% isn't small! A charity is typically funded by the returns from investing some pot of money. The stock market returns on average about 7% a year, and inflation is typically about 2%. 7-2=5. At 5%, the charity is required to spend on average all inflation adjusted money its endowment provides.
- notyourday 9y ago5% is an extremely small percentage. Foundations are not supposed to operate perpetually. That's the difference between them and charities.