· 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, S., & Faulk, L. (2014). Financial Analysis for Measuring and Comparing Risk in Grantmaking Portfolios. The Foundation Review, 6(3). https://doi.org/10.9707/1944-5660.1212