The late economics professor Hyman Minsky taught that all stable economies sow the seeds of their own destruction. The reason? Because stability itself induces risk-taking behavior - think speculative borrowing, undisciplined expenditures, etc. - that creates financial instability and eventually leads to panic and crisis. And while DiMeo Schneider is not forecasting an impending recession or market downturn, we do encourage nonprofit stewards to be especially thoughtful and intentional about their financial circumstances, initiatives and portfolio construction.
For additional information or assistance in examining the imbedded risks in your nonprofit’s endowment, foundation or reserve portfolio, please feel free to contact me or any of the professionals at DiMeo Schneider & Associates, L.L.C.