Frozen fund leaves schools reeling
About 1,000 colleges and private schools are scrambling to pay their bills after the $9.3 billion Wachovia Corp. fund that manages their investments froze withdrawals this week, The Wall Street Journal reported Oct. 2 (see fund story). A Wachovia spokeswoman said the bank’s decision to terminate the fund and resign as trustee had no connection with its recent purchase by Citigroup. The schools will be able to withdraw at least 57 percent of their money by year end and the rest in installments through 2011, says Commonfund, a Wilton, Conn.-based nonprofit that advises colleges and schools on money management.
Nonprofit endowments brace for Wall-Street fallout
Foundations, schools and hospitals in the Washington, D.C., area are trying to insulate their endowments from the crises on Wall Street, The Washington Post reported Oct. 2 (see endowment story). Many endowments, including that of the Community Foundation for the National Capital Area, already have taken a hit from the financial meltdown. The community foundation, one of the region’s biggest grantmakers, said its endowment lost about $40 million in the last three months.
U.N. Foundation provides gateway for corporate donors
Launched 11 years ago by cable magnate Ted Turner to facilitate his $1 billion gift to United Nations programs, the U.N. Foundation opened up a channel for corporate givers, The Financial Times reported Sept. 30 (see foundation story). Corporate donations to the U.N. now stand at around $700 million, with the foundation planning to raise another $1 billion by 2017.
* Today’s CEOs could learn much from Paul Newman’s belief that corporations have a duty to give back to their communities, say John C. Whitehead and Peter L. Malkin in an opinion column in The Wall Street Journal Oct. 2.
* A $7.5 million grant from the Los Angeles-based California Community Foundation to the Dallas Foundation’s Triad Fund will provide thousands of North Texas military personnel with emergency assistance and healthcare, The Dallas Morning News reported Oct. 2.
* Pam Iorio, mayor of Tampa, is cracking down on local nonprofits that receive city funds after allegations that Lex Salisbury, CEO of the Lowry Park Zoo, was using zoo resources to create his own for-profit animal park, The Tampa Tribune reported Oct. 2.