Question 1

Description

Some people argue nonprofit organizations should not have endowments at all. One of their arguments goes something like this: Putting money aside in endowment means depriving today’s generation of the use of those resources so as to benefit future generations, who will receive services supported by income from the endowment.

But there are many people in great need of services today. Why is tomorrow’s needy more deserving than today’s? The funds should be spent now to meet current needs. Let future generations of donors support the needs of people in the future. Since the economy is growing, giving will increase over time, and there should be enough philanthropy to meet those future needs. It is thus especially unjust to provide for the future at the expense of people alive today, who live in less affluent times.

Do you agree? Why or why not? What arguments would you make on the other side of this issue? Would your views be different with regard to different types of nonprofits, for example, homeless shelters, universities, museums, or environmental organizations?

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