Financial & Investment Information

Foundation board member Peter Damon (left) listens intently as W.E. Phillips asks a question at a Foundation-hosted investment briefing.

The Rhode Island Foundation is both a financial institution and a charitable organization. We employ long-term investment strategies and sound financial principles to ensure that the charitable dollars entrusted to us last forever. We also serve the larger community, requiring us now, more than ever, to maximize our available grantmaking dollars.

Diversified Asset Allocations

The Foundation has a diversified asset allocation and sets high performance standards for investment managers. During the past decade, the Foundation has increased the proportion of equity investments and has expanded its portfolio to include emerging markets, alternative investments, and global fixed income assets. Index funds comprised more than 35 percent of the Foundation’s portfolio in 2008.

The Foundation is committed to a “total return” investment philosophy, including a 5.9% average spending limit, to ensure that our endowment grows in perpetuity. Any investment return earned over the spending limit is added to principal, thus increasing the size of the endowment to combat inflation and overcome cyclical down markets.  Learn more about our investment policies.

Increased Grantmaking

We are proud to report that in the five years from 2004 to 2008, grantmaking grew from $22 million annually to more than $27 million in 2008.  The increase in annual grantmaking can be attributed to the Foundation's spending policy.

Adopted in 1991, the Foundation's spending policy guides us in determining what will be disbursed from the endowment.  Considered necessary to preserve and enhance the principal of the funds, the policy helps maintain the real value of the endowment while providing consistent grantmaking dollars during uncertain and volatile investment markets.

This "smoothing mechanism" will continue to provide a dependable source of spending for current Foundation operations and programs in perpetuity.