Charitable organizations certainly prefer to get your money now. But some charities, particularly foundations and endowed nonprofits, don’t use the money they receive right away, either; instead, they aim to grow their endowments by taking in more than they give away each year. For example, in 1999, foundations took in more than $90 billion but distributed less than $25 billion. That is why one analysis concludes that “donors should ask not just how, but how soon, their gifts will be used.”
Foundations grow endowments by taking in more than they disburse
