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Instead, with its reserves mostly depleted and struggling to balance revenues and expenditures, the Society's board of trustees took a step to increase the in­come that could be spent from its endowment: it adopted a "total return" invest­ment policy. Prior to this action, the Society spent only the dividend and interest income generated by its endowment. It did not spend any portion of realized gains generated through capital appreciation of the portfolio. Such a policy encouraged the Society to forgo growth investments (such as small company stocks) for in­vestments that generated the most current return (such as bonds).

The new total return policy allowed the Society to spend up to 5 percent of the endowment's market value annually (based on a three-year moving average of the endowment), irrespective of whether the endowment actually generated that amount of dividends and interest. In the annual report for 1967, Adams, referring to the remarkable growth in the market value of the endowment, ex­plained it this way: "This [1967 investment] performance would not have been possible if the funds had been entirely invested in bonds to secure maximum re­turn. Yet the portion of our money invested in 'growth' stocks produces initially a very low rate of income because of the retention of earnings by rapidly expanding companies. With rising costs of operation, the Society needs to increase income, yet prudent investment for the future in an inflationary economy dictates the pur­chase of substantial percentages of securities whose present yield is low." Adopt­ing a total return philosophy allowed the Society to pursue a goal of maximizing the growth of its endowment without sacrificing current income.

For a detailed explanation of total return and other principles of endowment management, see Chapter Ten.

The impact of the new strategy on the Society's operating budget was sub­stantial. In 1967, for example, proceeds from transferred realized gains (to bring spending up to the 5 percent limit) amounted to $244,204, increasing investment income by 48 percent over the 1966 investment income total of $509,000. This in­crease is represented by the discontinuity, or jump, in the Society's total revenues as depicted in Figure 4.1. It should be pointed out, however, that the newly avail­able realized gains relieved the pressure on Society leadership both to develop new revenue sources and to limit the growth of expenditures. Between 1966 and 1970, total operating expenses increased at a rate of 9.5 percent per year, while revenues were flat, increasing at an average rate of literally 0 percent per year.

See Table C.4-1 in Appendix C.
The growth in expenditures coupled with the lack of growth in revenue created a financial vise that would begin to close on the Society as the 1970s neared.

Nevertheless, the tremendous jump in revenue put Society leadership in an expansive mood. A major building renovation had been completed, the galleries were reinstalled and redecorated, and in the library, the lighting was redesigned and a new carpet was installed. With the renovations complete and the increase in spendable investment income, the Society's focus shifted toward becoming a more popular institution, increasing the emphasis given to the museum, educa­tion, and special programs.

Questions & Answers

where we get a research paper on Nano chemistry....?
Maira Reply
nanopartical of organic/inorganic / physical chemistry , pdf / thesis / review
Ali
what are the products of Nano chemistry?
Maira Reply
There are lots of products of nano chemistry... Like nano coatings.....carbon fiber.. And lots of others..
learn
Even nanotechnology is pretty much all about chemistry... Its the chemistry on quantum or atomic level
learn
Google
da
no nanotechnology is also a part of physics and maths it requires angle formulas and some pressure regarding concepts
Bhagvanji
hey
Giriraj
Preparation and Applications of Nanomaterial for Drug Delivery
Hafiz Reply
revolt
da
Application of nanotechnology in medicine
what is variations in raman spectra for nanomaterials
Jyoti Reply
ya I also want to know the raman spectra
Bhagvanji
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
Damian
yes that's correct
Professor
I think
Professor
Nasa has use it in the 60's, copper as water purification in the moon travel.
Alexandre
nanocopper obvius
Alexandre
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
Rafiq
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
Damian
How we are making nano material?
LITNING Reply
what is a peer
LITNING Reply
What is meant by 'nano scale'?
LITNING Reply
What is STMs full form?
LITNING
scanning tunneling microscope
Sahil
how nano science is used for hydrophobicity
Santosh
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
Rafiq
what is differents between GO and RGO?
Mahi
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
Rafiq
if virus is killing to make ARTIFICIAL DNA OF GRAPHENE FOR KILLED THE VIRUS .THIS IS OUR ASSUMPTION
Anam
analytical skills graphene is prepared to kill any type viruses .
Anam
Any one who tell me about Preparation and application of Nanomaterial for drug Delivery
Hafiz
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
Bob
The nanotechnology is as new science, to scale nanometric
brayan
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Damian
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
Renato
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
?
Kyle
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
Adin
why?
Adin
what school?
Kyle
biomolecules are e building blocks of every organics and inorganic materials.
Joe
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Source:  OpenStax, The new-york historical society: lessons from one nonprofit's long struggle for survival. OpenStax CNX. Mar 28, 2008 Download for free at http://cnx.org/content/col10518/1.1
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