Downturn spurs some foundations to give more

[Iwillnevergiveup]

Downturn spurs some foundations to give more
As need for aid deepens, groups cut into principal
By Irene Sege
Globe Staff / February 16, 2009
– + At a time when most foundations are cutting back or maintaining last year's spending, a few are doing what hedge fund manager Ken Nickerson of the Eos Foundation calls "counter-cyclical giving." They're increasing their grants.

Nickerson heard a story last October that helped him decide how to steer his family foundation through this severe recession: A gentleman visiting a local food pantry offered $5 for his groceries. Even after a pantry worker assured him they were free, the man insisted on paying. "There are people out there who need this $5 more than me," he said. The worker then laid his own $5 on the counter. Others did the same, and within moments the food pantry had collected $50.

Despite losing 30 percent of what a year ago was a $50 million endowment, Eos will spend an additional $15 million over the next five years to fight poverty in Boston. Nicker son and his wife have also contributed an additional $10 million to Eos to begin to offset its losses.

"At a time when we feel compelled to do more, our resources are vastly less," said Nickerson, 46. "It's something that kept us awake at night. . . . We have more money than we need, and the foundation needs it more than us."

While Nickerson recapitalizes his foundation, others dig deeper into their shrinking endowments than would be required to simply maintain spending. There are growing cries for more to do so.