The concept of intetergenerational equity provides a framework for studying risk sharing between generations of students. Risk sharing between the budget and the endowment is best understood by looking at various spending models. Franklin & Marshall undertook such a study in late 2008 to find a model that reduced the effective spending rate of the endowment while providing sustainable and more predictable income for the operating budget. Implemented in fiscal year 2011, our spending policy is on track to accomplish both objectives.
Learn more about how we re-engineered our spending policy from our special report.