Excellent point. We could perhaps apply that thinking to a variety of other social challenges with similar opportunities for future returns, not just global warming.
In this post on my new blog: dogoodgab.blogspot.com, I discuss the concept of evaluating financial investments similar to the way we consider social investments.
Are we really being wise stewards with limited resources by keeping vast amounts of capital out of circulation in the social benefit economy? Economists would shudder at the idea of a similar approach with financial capital markets. They wouldn’t imagine promoting imagine policies that encourage people to hold vast sums of paper cash under their mattresses. Yet—as long as the money is in foundations or endowments, it’s not being used to create additional social benefit, just as paper cash hidden under your mattress is not circulated in the financial markets to create additional wealth.
We do need to save some resources for future or ongoing challenges. Some things, like hiring new staff, require the guarantee of the ongoing funding that an endowment provides. But perhaps it’s time to re-evaluate the importance of keeping such vast sums in foundation assets and away from the people who can do good work with them.
COMMENTS
BY Varden Hadfield
ON February 12, 2008 01:42 PM
Excellent point. We could perhaps apply that thinking to a variety of other social challenges with similar opportunities for future returns, not just global warming.
In this post on my new blog: dogoodgab.blogspot.com, I discuss the concept of evaluating financial investments similar to the way we consider social investments.
Are we really being wise stewards with limited resources by keeping vast amounts of capital out of circulation in the social benefit economy? Economists would shudder at the idea of a similar approach with financial capital markets. They wouldn’t imagine promoting imagine policies that encourage people to hold vast sums of paper cash under their mattresses. Yet—as long as the money is in foundations or endowments, it’s not being used to create additional social benefit, just as paper cash hidden under your mattress is not circulated in the financial markets to create additional wealth.
We do need to save some resources for future or ongoing challenges. Some things, like hiring new staff, require the guarantee of the ongoing funding that an endowment provides. But perhaps it’s time to re-evaluate the importance of keeping such vast sums in foundation assets and away from the people who can do good work with them.