Setting appropriate spending rates in an uncertain future. With market volatility and unpredictable policy shifts, foundations are wrestling with how to set a sustainable spending rate that protects the long-term health of their foundations, while meeting the immediate needs of their communities. A well-constructed spending policy can help guide foundations during these discussions, ensuring distributions remain consistent enough to support grantees while preserving the long-term value of the endowment.
Designing impact investing strategies that fit mission and community. Community foundations are uniquely positioned to align investments with local priorities, but there’s no one-size fits all model. The conversation centered around tailoring approaches to local priorities, ensuring that impact investing truly amplifies the unique mission of each foundation and its region. A key theme was the intentional allocation of capital in ways that reinforce mission-aligned outcomes—where every investment decision supports both financial resilience and community well-being.
Economic developments are shaping investment decisions. From inflationary pressures to interest rate policy, the broader economic environment is shifting assumptions about portfolio performance. Leaders are asking how to position for both resilience and opportunity. An investment policy provides the framework to help institutions make adjustments around asset allocation, liquidity, risk and long-term spending thoughtfully, to help them stay true to mission and preserve their purchasing power for future generations.
Private equity as a tool for mission-aligned, long-term growth. Private equity is increasingly seen as a potential lever for supporting the long-term growth of the portfolio, which can aide in contributing to the institution’s mission, provided alignment and oversight are strong. While access to individual managers may not be attainable for those with smaller endowments, using a fund of funds approach is a great way for foundations to take advantage of the illiquidity premium and gain exposure to these strategies. Note: Alternatives strategies comprised 25 percent of community foundations’ portfolios on average, according to the recently released Council on Foundations-Commonfund Study of Investment of Endowments for Private and Community Foundations (CCSF).
AI is reshaping philanthropy (and the world). From data-driven analysis to new approaches to donor engagement and fundraising, AI is beginning to change how philanthropy operates. The conversation focused on how to use these new tools responsibly while preserving trust and integrity. A formal AI policy can help set boundaries for which tools will save time, increase productivity and advance impact.
While each community foundation faces a unique set of challenges and opportunities, the themes above represent some of the most pressing issues identified by conference attendees.
Commonfund Institute is committed to the foundation community and to continuing to learn more about growing concerns for this segment. Find out more on how to be a part of the conversation and participate in the next Council on Foundations-Commonfund Study of Foundations (CCSF).