just remember though that interest rates are currently 0%, even the 10y treasury bond is only marginally above 2%, so giving away 2% a year at least for the nea

just remember though that interest rates are currently 0%, even the 10y treasury bond is only marginally above 2%, so giving away 2% a year at least for the near to medium term assumes capital growth in riskier forms (equities, more donations) well above distribution levels. This is why explicit payments on a recurring basis are more important than ever, even more so than the (certainly still brilliant) 1m donation. Endownments that have been used to payout ratios of the order you mention have relied for most of the past 50 years on long term treasury yields (30y) well above 5%. We're now nudging 3% for the first time since the dawn of the computer era. Tough times.