High-Risk Investments To Blame For Orgs’ Ailing Budgets

“If the investment goal of arts endowments is the preservation of capital, how can they now face decreases of 35%, aside from the criminal actions of investors like Bernard Madoff? For the answer, look to nonprofit money managers and ‘managers of managers,'” which “have encouraged arts organizations to seek ‘total returns,’ including capital appreciation, from their endowments, rather than merely preserving capital and accruing dividend income.”