Foundation Chiefs Spar on Question of Giving in Perpetuity
Resource type: News
The Chronicle of Philanthropy | [ View Original Source (opens in new window) ]
PALO ALTO, CALIF.—Defenders of foundations created to live forever fought off arguments that they should give away all their money and close up shop, saying that advocates of limited-life foundations were misguided in their assessments of how to do good for society.
The two sides sparred vigorously Monday at the Giving in Time conference at Stanford University’s Center on Philanthropy and Civil Society over which type of foundation provides the best management of assets dedicated to charity.
Jeff Raikes, co-founder of the Raikes Foundation, urged more foundations to spend fast enough to put themselves out of business within a few decades or less. He offered a business analogy to support his position, noting that because of inconsistent management, few companies survive longer than 75 years.
“The idea that we can have a lot of foundations that are going to exist for more than 100 years that are going to have great managerial strategies consistently, I’m just a real skeptic,” said Mr. Raikes, whose foundation has pledged to spend down its assets by 2038. “I think the sense of urgency drives greater impact.”