· Risk has not been treated in a systematic way that allows for a rich understanding of the extent to which foundations are, or should be, incorporating or evaluating risk in philanthropy.
· In this article, we conceptualize and develop a tool to evaluate the levels of philanthropic risk that foundations maintain through their grant portfolios.
· We create an index of aggregated risk at the portfolio level using several financial indicators based on previous theory and literature. Then, we test the index on a sample of foundations and their grantees in the state of Georgia and compare risk levels across community, corporate, family, independent, and operating foundations.
· Our results show small differences in philanthropic risk levels when measured by financially oriented proxies between foundation types.
Ashley, Sheena and Faulk, Lewis
"Financial Analysis for Measuring and Comparing Risk in Grantmaking Portfolios,"
The Foundation Review:
3, Article 8.
Available at: http://scholarworks.gvsu.edu/tfr/vol6/iss3/8