Endowment Management: Building a Portfolio for Generations
Portfolio | Principle IV | Commonfund Institute | Principles of Investment Stewardship Constructing and overseeing an investment portfolio is, as the Principles brochure puts it, the nucleus around...
Beyond the Benchmark: A Decade of Endowment Spending Rate Trends
Rising inflation, falling enrollment, fundraising challenges, and changes in federal funding have left institutions seeking increasing support from their source of perpetual capital: their endowment....
Your Crisis Playbook Needs Guardrails, Too
Why your governance needs stress-testing before the market does it for you
Commonfund Convenes: Institutionally-Related Foundations in Practice
Commonfund recently hosted a webinar on how institutionally-related foundations (IRFs) balance donor intent, institutional priorities and operational structure, the latest in their Commonfund...
Midterms, Tax Exemption, and What’s Next
Commonfund Institute tracks significant policy developments that may affect nonprofit institutional investors. In our most recent article, we summarized the sweeping changes in the 2025 federal...
Governing Through Complexity: Takeaways from the FAOG Annual Conference
The Finance, Administration and Operations Group for Community Foundations (FAOG) 2026 Annual Conference, held in Salt Lake City from September 20-23, highlighted a fundamental shift in community...
Investment Committee Governance: How to Steer, Not Manage
Process | Principle III | Principles of Investment Stewardship The word "governance" comes from a Greek term meaning "to steer." It's a fitting origin for investment committees, whose core...
Impact Investing vs. ESG: Defining Mission-Aligned Investing
Ask ten investment professionals what "mission-aligned investing" means and you are likely to get ten different answers. Some will say environmental, social and governance (ESG). Others will say...
Investment Policy Statement: The Document Behind Every Decision
Policy | Principle II | Principles of Investment Stewardship An investment committee can have talented members, a well-diversified portfolio, and a thoughtful manager roster — and still make poor...
How do Endowments Work? Common Misconceptions
In recent months, institutional endowments, particularly those within higher education, have been subject to heightened scrutiny. This attention has, at times, created tension and contributed to the...
5 Takeaways from the 2026 NACUBO Annual Meeting
If you've already read Inside Higher Ed's recap of the NACUBO Annual Meeting (held in Anaheim from July 18-21), "A Call to Meet the Moment at NACUBO,” you know federal policy uncertainty dominated...
Philanthropy and Fundraising: Trends & Leadership Insights
At the 2026 Investment Stewardship Academy, held at Yale University this past June, three leaders in the philanthropic sector — Dr. Amir Pasic, Eugene R. Tempel Dean at Indiana University's Lilly...
Endowment Purpose and UPMIFA: What Nonprofit Boards Must Ask
Purpose | Principle I | Principles of Investment Stewardship The Question Every Endowment Fiduciary Should Be Asking For many nonprofit organizations, the endowment is the difference between...
The Case for the Seventh P: Progression in Nonprofit Investment Stewardship
At Commonfund Institute, we’ve long adhered to the six guiding principles of nonprofit investment stewardship, often referred to as the "6 Ps": Purpose, Policy, Process, Portfolio, People, and...
Higher Education Endowment Return Assumptions in a Changing Environment
Many colleges, universities, and nonprofit institutions built long-term endowment portfolios on assumptions about investment returns, donor giving, and federal support that once enabled confident...
Religious K-12 Schools: Endowment Trends and Performance
Earlier this year, Commonfund Institute released the 21st annual Commonfund Benchmarks Study of Independent Schools (“CSIS” or the “Study”), reporting on key investment governance trends and insights...
Religious-Affiliated Higher Ed: Endowment Performance & Investment Practices
Earlier this year, Commonfund, in partnership with the National Association of College and University Business Officers (NACUBO), released the 2025 NACUBO-Commonfund Study of Endowments (NCSE). The...
A Closer Look at Institutionally-Related Foundations’ Endowments
Earlier this year, Commonfund, in partnership with the National Association of College and University Business Officers (NACUBO), released the 2025 NACUBO-Commonfund Study of Endowments (NCSE). The...
A Closer Look at Independent Schools with Smaller Endowments
Commonfund, in partnership with NBOA, recently released the 2025 Commonfund Study of Independent Schools (CSIS, or, the “Study”). The Study examines investment performance, governance and management...
Inflation Strategies for Independent School Endowments
Inflation impacts independent schools in a variety of ways: it puts additional pressure on endowments and operating budgets, makes it more difficult to meet inflation-adjusted target returns, and...
Community Colleges: Analyzing Endowment Performance and Trends
Earlier this year, Commonfund, in partnership with the National Association of College and University Business Officers (NACUBO), released the 2025 NACUBO-Commonfund Study of Endowments (NCSE). The...
Fundraising and Gifts: A Growing Area of Concern
Gifts are a critical component of the independent school business model: adequate gifts, endowment returns, tuition and student enrollment enable schools to serve students year after year. This...
A Closer Look at Historically Black Colleges and Universities’ Endowments
Earlier this year, Commonfund, in partnership with the National Association of College and University Business Officers (NACUBO), released the 2025 NACUBO-Commonfund Study of Endowments (NCSE). The...
A Closer Look at Higher Education Endowments Less Often in the Spotlight
Earlier this year, Commonfund, in partnership with the National Association of College and University Business Officers (NACUBO), released the 2024 NACUBO-Commonfund Study of Endowments (NCSE, or,...
A Closer Look at Private Family Foundations
Commonfund, in partnership with the Council on Foundations (COF), recently released the 2024 Council on Foundations-Commonfund Study of Investment of Endowments for Private and Community Foundations...
Higher Ed in 2025: Top 5 Business Concerns and How Institutions Can Respond
For the past four years, NACUBO has surveyed chief business officers and other financial and administrative professionals about the challenges that confront them—and how they are working to support...
A Closer Look at Health Conversion Foundations
Commonfund, in partnership with the Council on Foundations (COF), recently released the 2024 Council on Foundations-Commonfund Study of Investment of Endowments for Private and Community Foundations...
Health Conversion Foundations: Preserving Community Health in a Changing Landscape
In the evolving terrain of American healthcare, health conversion foundations, also known as health legacy foundations, have emerged as powerful stewards of community well-being. These philanthropic...
Themes from the 2025 FAOG Conference for Community Foundations
Last week in Oklahoma City the 2025 FAOG (Finance, Administration & Operations Group) Conference convened experts and over 300 delegates from community foundations around the country to explore the...
Endowments, Nonprofit Sector Face Major Shifts Under New Federal Tax and Education Law
Congress’s newly passed reconciliation bill, H.R.1, introduces sweeping changes that will reshape education financing, nonprofit operations, and endowment management. Here we summarize key provisions...
Tax Regime of Higher Education and Nonprofits Set to Change
On May 12th 2025, the House Ways and Means Committee released its budget proposal that includes major tax changes that, if passed, would apply to many endowments and foundations as described below....
Considerations for Foundations to Meet the Moment
In response to the current political, social, and economic challenges, numerous foundations are increasing their support and adapting their strategies to address pressing issues. There have been...
A Closer Look at Minority-Serving Higher Education Institutions
Following the release of the 2024 NACUBO-Commonfund Study of Endowments (NCSE), Commonfund conducted a focused analysis of data reported by the 97 participating Minority-Serving Institutions (MSIs)....
A Closer Look at Religious Independent Schools
Earlier this year, Commonfund Institute released the 20th annual Commonfund Benchmarks Study of Independent Schools (“CSIS” or the “Study”), reporting on key investment governance trends and insights...
2025 Policy Outlook: What Endowments and Foundations Should Know
On January 30th, Commonfund Institute, in partnership with the National Association of College and University Business Officers (NACUBO), the Council on Foundations (COF), and the Council for...
Three Things You Should Know About Inflation and the Higher Education Price Index
The Higher Education Price Index (HEPI), produced annually by Commonfund Institute, is an inflation measure designed specifically for educational institutions. It is comprised of eight key components...
Four Things we Learned from Foundation Leaders
Following the release of the Council on Foundations–Commonfund Study of Investment of Endowments for Private and Community Foundations (the “Study”), Commonfund Institute hosted a three-part Coffee...
Increasing Use of OCIO Relationships Requires New Governance Considerations
More and more endowments and foundations are entering outsourced chief investment officer (OCIO) relationships as long-term mission-aligned investing becomes mired in the complexity of rapidly...
Commonfund on the Road: Insights from our California Roundtables
For over 50 years, Commonfund has been working with boards and committee members helping endowments and foundations to sustain their missions over many generations and promoting best practices in...
Three Fundamental Duties of Nonprofit Boards
It is essential that trustees of endowed portfolios hold themselves accountable to a set of standards in order to maintain sound governance practices. Fiduciary duty is an important part of the...
Shaping Your Board - Key Considerations for Success
The structure of a board can help, or hamper, its effectiveness, and consideration of these matters is important to improving a board’s performance. Factors such as size, board chair, diversity and...
Drafting Your Investment Policy Statement: 10 Critical Issues
Endowed institutions differ in their missions, capabilities and resources, and investment policy statements naturally mirror these differences. In that sense, there is no single ‘right’ investment...
Excellent Boards Are Made, Not Born
Boards that are exemplary for their adherence to best governance practices have certain identifiable traits. But this is no accident—they have taken steps to elevate their practices and maintain them...
Why Governance Matters to ESG
According to the Financial Times “Investing within an ESG framework is now the fastest-growing segment of the asset management industry.” In line with this growth is the increasing number of...
Investment Objectives? Not Always.
The 2021 Council on Foundations—Commonfund Study of Investment of Endowments for Private and Community Foundations® (CCSF) marked our tenth year in collaboration with the Council on Foundations. The...
Asset Allocation: Controlling for the Variables
Our 2021 Council on Foundations-Commonfund Study of Foundations marked our 10th year in collaboration with Council on Foundations and the Commonfund Institute to measure, analyze and document the...
Research Shows 10-Year Returns for Foundations Reach Highest Point
Our 2021 Council on Foundations-Commonfund Study of Foundations marked our 10th year in collaboration with Council on Foundations and the Commonfund Institute to measure, analyze and document the...
Better Benchmarking: What Makes Your Institution Unique Matters
There is no doubt that benchmarking is a good practice for institutions to follow – we publish studies each year for various nonprofit sectors for that reason. While we think that benchmarking is...
Key Governance Factors for Higher Education Prove to Be Quantifiable
A board self-assessment is one of the most commonly used tools to evaluate how effectively a board performs. The purpose of a board self-assessment is to help board members analyze their present and...
Aligning Spending Policy with Your Institution’s Long-Term Goals
Commonfund has designed a set of questions to help guide a committee—and staff—toward selecting the most appropriate spending policy. We have used these questions as a guideline for conversations...
Is your Spending Policy Getting the Attention it Needs?
Spending policy is the most overlooked aspect of endowment management and many are likely not employing the optimal calculation for their institution. Many investment committees review "strategic...
Spending at Independent Schools Impacted by COVID-19
The effects of COVID-19 have been felt across the entire nonprofit sector and the independent schools’ community is no different. For the Commonfund Benchmarks Study® of Independent Schools (CSIS)...
Managing Financial Challenges During Crisis – A Checklist for Higher Education
Many educational institutions are facing unpredictable financial challenges as a result of the COVID-19 pandemic. Costs associated with implementing technologies for virtual learning, decreased...
What Does the NTSE One-year Number Tell You? As it Turns Out, Not Much.
I love the NACUBO-TIAA Study of Endowments. Every year, I eagerly await the annual report from the National Association of College and University Business Officers on the investment performance and...
Viewpoint | Why are Gifts to Endowments Declining?
For the third straight year, Commonfund Benchmarks Study® of Independent Schools (CSIS) participants reported average new gifts to endowment declined, this year falling to an average of $1.2 million...
What Strategic Decisions are Investment Committees Focused On?
Independent schools have been faced with fundamental shifts in their business model and have adapted to stay true to their educational missions. This year has been particularly difficult for many...
Investment Governance | Are You Asking These Three Questions?
In the midst of a global pandemic, many non-profit business models are being challenged which has put significant pressures on staff, governing boards and committees. These pressures on time and...
The Key Endowment Questions for Challenging Times
During this time of unprecedented challenges, the financial health of colleges and universities is a critical concern. Boards, investment committees, institutional leaders, and their advisors must...
Is It Time to Issue an Investment Manager RFP for Your Nonprofit?
Best practice for nonprofits is to issue a Request for Proposal (“RFP”) for an investment management partner every market cycle. Typically, that is at least every 7 to 10 years, or as it is...
Observations on Diverse Manager Selection Across Asset Classes
At Commonfund, we believe diverse managers offer clients access to investment talent and valuable investment opportunities and therefore should be explored and invested in. Overlooking the merits of...
Stewardship During This Crisis: Five Things for Boards to Consider
As the world continues to grapple with the social, economic, and public health implications of the current COVID-19 crisis, nonprofit organizations and their boards are working tirelessly to...
10 Tips for Stewarding People Remotely
Six key words – Purpose, Policy, Process, Portfolio, People, and Perspective – form a framework for effective endowment stewardship. As trustees, investment committee members, and senior management...
Traits of High-performing Boards … and Steps Toward Becoming One
When this was published, Tom Hyatt was a partner in the Washington. D.C. law firm of Dentons US LLP and an authority on nonprofit governance. This blog is excerpted from a presentation he made at the...
Back to Basics: The ABCs of Nonprofit Governance Models
When this was published, Tom Hyatt was a partner in the Washington. D.C. law firm of Dentons US LLP and an authority on nonprofit governance. This blog is excerpted from a presentation he made at the...
The 5 Top Stewardship Imperatives
Christopher K. Merker, PhD, CFA, is a financial advisor and director of Private Asset Management at Robert W. Baird & Co. and an adjunct professor at Marquette University. He is also the co-author of...
Higher Ed: Philanthropy is an Adjunct, Public Policy Deserves Tenure
In the last few months, high profile nonprofit institutions have come under intense scrutiny for ethical dilemmas pertaining to the stewardship of resources meant to support mission. This is Part...
The Four P’s of Investment Decisions: Lessons from the Commonfund Institute
Three days after becoming Executive Director of the Commonfund Institute, I found myself at Yale University in New Haven giving welcoming remarks at our annual educational program. Although I will...
When Leaks Turn into Floods: Challenges Facing Higher Education
2017’s tax legislation is the latest in a growing list of challenges facing higher education. The new excise taxes on endowment earnings of the largest private universities, coupled with the...
Tax Reform: CPI Plus More
It was another taxing weekend (literally) at Commonfund as we digested 1,097 pages of the conference agreement for the tax reform bill (the “Tax Act”) and its implications for our country and for the...
The Tax Man Cometh (And Not Just for the Ivies)
UPDATE: Since this blog was published there have been further developments related to the Tax Cuts and Jobs Act. Please see our post Tax Cuts and Jobs Act: CPI Plus More for our latest thinking. With...
Spending Policy: Is Yours Ready for the Next Downturn?
In most Investment Policy Statements there is often a reference to two important, but conflicting, objectives: one, to preserve the purchasing power of the long-term portfolio in real terms, and two,...
On Complacency | Why Risk Management Always Matters
Like nearly everything in the financial markets, risk is cyclical. History repeats itself. The echoes of past crises are always heard in present ones, yet new crises are rarely predicted and not...
How Does Board Structure Affect Performance?
The structure of a board has an important influence on its effectiveness, and being cognizant of these matters is essential to improving a board’s performance. In this article, we’ll discuss four...
Fiduciary Responsibility: A Board’s Purpose and Roles
Excellent boards are made, not born. Achieving excellence in board governance requires success in four crucial areas: capable leadership, a sound organizational structure, attention to fiduciary...
Where Did Our Operating Income Go?
Treasury managers face a new challenge to an old problem. Their institutions historically have relied on operating investment income to provide a necessary influx to operating budgets. Prior to 2008,...
Bridging the Gap: Carbon and Fiduciary Responsibility
Most institutional investor discussions and actions regarding global warming have been at two ends of the spectrum: either divest from fossil fuels entirely or remain fully invested. A better...
Top Ten Risks for Practicing CIOs
A Chief Investment Officer’s primary responsibility is to identify and clearly communicate his/her portfolio’s risks to his/her Board, Investment Committee and/or client(s). About eighteen months...
Operating Charity Implements a Risk-Based Investment Policy
An operating charity in the Northeast is in the process of implementing a risk-based investment policy for its $30 million endowment. The organization’s seven-member Investment Committee includes...
What is ESG Investing?
Generally speaking, Environmental Social and Governance, or ESG for short, is used to describe a group of characteristics that can have a material impact on the long-term success of a company and,...