Foundation - Loss averse tendency?

[FrankCFA]

I know the foundation’s risk tolerence is high becasue of longer time horizon.
But will it also has loss averse tendency especially the source of fund is from public? It looks pretty bad if the donors realized the fund manager is losing their money.

 

[broadex]

Foundations make grants with a certain objectives (not an obligation) eg to save Zimabwe elephants from poachers - see HERE & are funded by gifts (typically only one gifter). They have to spend a minimum amount per year to retain their tax-exempt status otherwise foundations can spend down their principal (although they usually don’t). There are no liabilities to be cover in the future and generally have long time ——-all these adding to high risk tolerance relative to other institutions like DB Pensions, Banks, etc. Im sure about the loss aversion and how this fits in, but i guess with the above factors, there is no reason why they cant take more risk (less loss averse).

 

[CMLSML]

^ +1