Mostly set up in the legal form of a foundation or a charitable association with the purpose of performing charitable work in the field of society. Such entities fulfill extremely important tasks in a state. Among other things, they fill gaps in state administration, protect the cultural heritage and strengthen social cohesion. Since they are financed in part by assets, they are directly affected by inflation and financial crises and their existence is particularly at risk. For this reason, they have to cut back on their services at a time when their subsidiary function is particularly necessary. For example, Duke University in Durham (North Carolina, USA), probably the world’s largest private university in terms of area – with an area of 38 square kilometers and around 220 buildings, most of them built in perfectly shaped neo-Gothic style – lost around a quarter of its endowment assets as a result of the financial crisis that followed the subprime crisis. As a result, it had to cut back on its generous scholarship awards and also cut back on many research projects. This, in turn, has had a long-term impact on the economy and society here as elsewhere. Preserving the value of money and ensuring financial stability are therefore tasks that must be viewed over a long time horizon. – See inflation-growth relationship, cultural sponsorship, endowment funds, endowment management.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/