Fünf Jahre Niedrigzinsphase und kein Ende in Sicht?

In order to generate sufficient returns despite low interest rates, many German foundations are apparently taking greater risks than previously known. According to a survey by PwC, almost one-third of foundations have already shifted part of their assets into higher-yielding – and thus in principle also riskier – forms of investment. More than half of foundation executives anticipate that the non-profit sector will have to accept higher risks in the next four to five years in order to increase income for the fulfilment of its purpose. However, the survey, in which 208 of Germany's wealthiest foundations participated, also reveals that foundations generally intend to stick to their conservative investment policies. The safety-oriented investment strategy, especially in fixed-income securities, may prevent significant asset losses but also limits profit potential. Most German foundations aim only at nominal capital preservation, which can lead to financial difficulties in the long run. A change in asset management, the professionalisation of asset management and fundraising are gaining importance in order to stabilise foundations financially.

Our publication serves as a guide for those concerned with the long-term financial stability and sustainable growth of foundations. It illustrates, through various practical analyses, how the safety-focused investment strategy of many foundations can lead to limited profit potential and long-term financial challenges.