Comment Re:That's ridiculous (Score 5, Insightful) 694
I suggest you look up "charitable foundation" and remind yourself of what it means. http://en.wikipedia.org/wiki/Charitable_foundation
The whole idea is that a principal is invested so that the recurring interest can be put to good use. It's a way of ensuring stable, sustainable giving. The fact the net worth of the Foundation is growing every year means they have more to give. In that light, 5% sounds about right (or even high) for current interest rates, don't you think?
The whole idea is that a principal is invested so that the recurring interest can be put to good use. It's a way of ensuring stable, sustainable giving. The fact the net worth of the Foundation is growing every year means they have more to give. In that light, 5% sounds about right (or even high) for current interest rates, don't you think?
