One thing that I have wondered about for some time is what is the rate of return above which a charity would rather receive money say a year from now, rather than now. We can all suspect that a charity would rather receive $200 a year from now than $100 now, and it is also not unreasonable that a charity would rather receive $100 now than $108 a year from now. I suspect that given how important their work is, a charity would want at least 20% (maybe more like 25%) a year from now more money to happily forego receiving money immediately. Perhaps others have ideas on this matter that they would like to share.
One thing that I have wondered about for some time is what is the rate of return above which a charity would rather receive money say a year from now, rather than now. We can all suspect that a charity would rather receive $200 a year from now than $100 now, and it is also not unreasonable that a charity would rather receive $100 now than $108 a year from now. I suspect that given how important their work is, a charity would want at least 20% (maybe more like 25%) a year from now more money to happily forego receiving money immediately. Perhaps others have ideas on this matter that they would like to share.
Eric Seele (hermanseele@yahoo.com)