2 Small Endowments Take Different Paths to Growth

Advocate Charitable Foundation

Endowment’s market value: $45.5-million

Fiscal year ends: December 31

Growth in market value from 2011 to 2012: 27 percent

Growth in market value from 2008 to 2012: 155 percent, after inflation

Behind the numbers: Despite the downturn, the Advocate Charitable Foundation’s endowment grew in each of the past five years. Like many similar-size charities, the group avoided risky investments like venture capital and private equity. The endowment, which supports the Advocate Health Care group, in the Chicago area and Central Illinois, puts nearly three-quarters of its assets in stocks and bonds. Doing so helped the endowment grow by 27 percent last year.

Photograph by Lance Cpl. Nik S. Phongsisattanak

Marine Toys for Tots Foundation

Endowment’s market value: $43.2-million

Fiscal year ends: December 31

Growth in market value from 2011 to 2012: 19 percent

Growth in market value from 2008 to 2012: 69 percent, after inflation

Behind the numbers: In 2008, the Marine Toys for Tots Foundation’s endowment was valued at $25.5-million. Apart from 2011, when the endowment’s market value dropped by 4.4 percent, the group’s assets have steadily risen each year since 2008. The foundation invests heavily in bonds and even more heavily in stocks, with the remainder in cash or cash equivalents. Using this strategy, the foundation expects an investment return of 10 to 19 percent this year.