A nonprofit board of directors is establishing an endowment investment portfolio to earn enough income to match future costs. This is an example of applying the ______ concept.

Question

Quizplus · Accepted Answer

The total return concept focuses on generating enough return to meet future costs or goals, while considering both income and capital appreciation. By establishing an endowment investment portfolio to earn enough income to match future costs, the nonprofit board of directors is practicing the total return concept.

A Nonprofit Board of Directors Is Establishing an Endowment Investment