At NACUBO’s Endowment Leadership Forum, Nonprofit Specialist John Griffith and Senior Portfolio Manager Nick Fazzie led a thought-provoking session on Rethinking Liquidity in a Volatile Rate Endowment. Presenting along with Tim Baird, VP of Finance at Geneva College, they tackled a key dilemma for colleges and universities: how much liquidity do you need, and what is it costing you?

With yields down from recent highs, excess cash and bonds can do more harm than good—dragging on returns and eroding long-term purchasing power. The real risk isn’t volatility. It’s failing to grow.

Their session covered many of same topics in our recent paper: How Much Liquidity is Too Much?

Leading institutions are thinking about endowment liquidity with an enterprise-wide lens—aligning liquidity with operating needs and strategic objectives, and thoughtfully incorporating illiquid investments to enhance long-term outcomes.

The question is no longer how much liquidity feels comfortable, but how much is actually optimal.

If you are interested in learning how a strategic approach to liquidity can strengthen your endowment’s long-term impact, we encourage you to read our paper or contact us.