Spending down: Opportunity or risk?

Spending down: Opportunity or risk?

Recently, the charity sector received news from two significant trusts and foundations that they plan to spend down their endowment over the next few years.

The Albert Hunt Trust will mark its 50th anniversary by spending down in 2029, and the Lankelly Chase Foundation is spending down its endowment over the next five years.

This comes off the back of the recent closures of the J P Getty Jnr Trust, Monument Trust, Shirley Foundation and the Peter Moores Foundation. 

But what is spending down? In its simplest terms, it refers to a trust or foundation spending its assets over a short time period, rather than using them to accumulate income for distribution to charities on an annual basis. 

In our latest article for Arts Professional, Ben Wilson considers how - by spending down their assets - trusts and foundations are making a strategic change of direction which could pose a threat to the charity sector.

Find out more about our partnership with Arts Professional and explore previous articles