A Good Ending

The authors usually think of large private foundations (those with assets of more than $1 billion) as permanent endowments. Names like Ford, Carnegie, Rockefeller, and Packard summon the image of a donor whose vision -- and wealth -- lasts well beyond his or her lifetime. But a countervailing trend is emerging. Many prospective philanthropists and established foundations are now considering or actively pursuing a limited-life strategy. They are, in other words, planning to close at some future date. Researchers at the Sanford School of Public Policy at Duke University have identified 45 foundations that have completed an intentional spend-down, along with 29 other foundations that plan to follow such a course. For them, everything now comes down to ensuring their legacy. That means continuing to make big bets on transformational opportunities -- big bets whose impact will endure beyond the existence of their foundation.