One of the applications of financial engineering in the endowment sector, offering several advantages that enhance the ability of endowments to achieve sustainability, such as asset diversification, governance, professional management, predictability, and more effective risk management.

Applying governance principles in large and medium-sized endowments is akin to leading change. It cannot happen overnight, nor can it be achieved by simply purchasing governance products and ready-made regulations. Instead, it must go through the same stages and steps as change management in organizations.

In the context of replacing an endowment’s original asset to achieve betterment and serve the endowment’s best interests, this article highlights a legal precedent for replacing real estate with other non-real estate assets to revitalize endowments.

Since there is no standard for the size of endowments or nonprofit organizations, whether classified as small, medium, or large, it remains unclear for decision-makers or grant seekers. Therefore, Future Investment has adopted an innovative model to practically determine the size of endowments.