How to Think About Risk in Philanthropy
Abstract
Along similar lines, you may well prefer an investment that enables you to buy one burger for certain rather than one that offers a 50 percent chance of four burgers and a 50 percent chance of not being able to buy any burgers at all – even though on average the riskier investment buys twice as many burgers as the safe investment would. Suppose that, like the foundation addressing Ebola, your foundation has the single goal of saving lives through disease reduction. Personal and foundation investments also differ in that while you and your family can rely only on your personal investment portfolio, your foundation is hardly the only entity addressing Ebola and other deadly diseases; other foundations, as well as governments, are concerned with the same problem.