Sunsetting in Style

Ultimately, the foundation may become too small to fulfill its original purpose and face liquidation. Since the 2007-08 global financial crisis, which led to low or even negative interest rates, the number of foundation liquidations in Switzerland has quadrupled. Other foundations convert from perpe...

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Bibliographic Details
Published in:Stanford social innovation review 2024-04, Vol.22 (2), p.65-66
Main Authors: Hengevoss, Alice, Von Schnurbein, Georg
Format: Magazinearticle
Language:English
Subjects:
Endowment
International finance
Planning
Recessions
Social impact
Online Access:Get full text
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Summary:Ultimately, the foundation may become too small to fulfill its original purpose and face liquidation. Since the 2007-08 global financial crisis, which led to low or even negative interest rates, the number of foundation liquidations in Switzerland has quadrupled. Other foundations convert from perpetuity to sunset and increase the level of their payout so that the capital is consumed within a shorter period of time. Without its staff, a foundation will run out of business even before the sunset. [...]the leaders have to pay special attention to the well-being of staff members and offer flexible solutions for their future careers. [...]the foundation needs to evaluate the situation of each of them separately and carefully.
ISSN:1542-7099