Nonprofit Endowment Returns Tumble as Markets Plummet
October 2, 2008 | Read Time: 1 minute
The nation’s financial crisis is exerting excruciating downward pressure on returns at endowments of nonprofit groups, reports The Washington Post.
Officials at the Community Foundation for the National Capital Area, in Washington, said the organization’s endowment lost approximately $40-million during the quarter that ended Tuesday.
“If you look at these nonprofit institutions that service the neediest people in our community, those people’s own assets are taking a hit personally, and now the community institutions they rely on for support are taking a hit and they don’t know where to turn,” said Eric Kessler, managing director of Arabella Philanthropic Investment Advisors, in Washington.
Meanwhile, officials at Suburban Hospital, in Bethesda, Md., and Adventist HealthCare, a Washington area nonprofit organization that runs two hospitals in the region, said they are monitoring the bond markets to make sure their institutions remain safe from the financial crisis.
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