NFP | NFP organizations

Prioritizing action: a crisis framework for endowments and foundations 

While every crisis is unique, the playbook for tackling them is not. This paper outlines Mercer’s ADAPT framework for endowments and foundations. This is intended to help investors set priorities during any crisis scenario, especially those driven by markets and policy issues. 

Crisis can come in any form, at any time. For any operational crisis, a crisis-management plan should be developed to evaluate the issue, understand its importance, and devise a response, at least on a temporary basis.

We have developed a model to help endowments and foundations ADAPT to weather any crisis that comes their way.

  • Assess impact
    Boards and leadership must develop an evaluation and response framework and revisit it periodically as the crisis evolves. 
  • Determine liquidity needs
    Every E&F portfolio supports an institution and its mission, but those organizations face different operational stresses. Institutions pondering layoffs may need cash to pay for severance. Institutions facing programmatic cutbacks need to replace lost revenues. Should mission-driven needs increase, organizations can try to raise cash by increasing fundraising efforts or contemplating mergers.
  • Align portfolio outcomes with needs
    If an E&F knows how the investment pool may react to future market dynamics, then they can adjust its structure seeking to best fit the organizational needs at that time. 
  • Plan further engagement with donors 
    Organizations should lean hard into fundraising. Create an emergency fundraising appeal and feature it prominently on your website. Be clear about your target amount, emphasize that every dollar counts, and thank every donor with a personal call or letter.
  • (be) Transparent internally and externally with stakeholders 
    It is very important to ensure the broader organization staff know how leadership is managing through a crisis and the decisions that have and may be made. This would provide context for staff to understand the company’s broader situation and stability.
No matter the source of disruption, E&Fs need to be aware of how to handle these types of concerns and uncertainty. The ADAPT framework provides steps and considerations for any type of disruption to ensure the viability of operations for the long-term.

Explore our model to help endowments and foundations to weather any crisis that comes their way.

Download the full paper

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