Wallace Global Fund Has Pledged to Spend Entire Endowment
The foundation will liquidate its $54.6 million in assets to address compounding global crises immediately.
Updated on Sept. 22, 2026 in Philanthropy
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The Wallace Global Fund has announced plans to exhaust its entire $54.6 million endowment to support movement infrastructure and frontline organizers. By spending down its assets, the foundation aims to confront current crises rather than preserving capital for the future.
Why it matters
The fund is urging other institutions to increase their annual payout rates to between 10 and 100 percent to mobilize more capital for social causes. This move challenges the standard practice of holding assets in perpetuity for long-term growth.
The foundation holds $54.6 million in total assets and has distributed $24 million in grants over the last 15 months. This approach exceeds the 2024 median payout rate of 5.1 percent seen among large U.S. foundations holding over $1 billion.
The players
Wallace Global Fund
This private foundation focuses on providing resources to movement infrastructure and frontline organizers working to address global crises.
Institute for Policy Studies
This think tank works to provide research and analysis for social movements and policy alternatives.
Henry Wallace
He was an American politician who served as the 33rd Vice President of the United States and notably wrote about American fascism in 1944.
The details
The organization has already committed $10 million to the Institute for Policy Studies endowment and backed a $15 million fund dedicated to ending female genital mutilation. It argues that by moving beyond the minimum 5 percent legal payout, other foundations could release an additional $23.4 billion into the charitable sector.
Timeline
In 1944, Henry Wallace authored an influential essay regarding American fascism.
The fund divested from fossil fuel investments starting in 2010.
In 2024, the median payout rate for large foundations reached 5.1 percent.
The spend-down decision accelerated during the last 15 months.
Market Landscape
The Wallace Global Fund's complete liquidation contradicts the standard philanthropic model, which relies on the U.S. legal minimum payout threshold of 5 percent to maintain assets in perpetuity. This move positions the fund as a leader in a growing push to challenge traditional endowment accumulation in favor of urgent social impact.
For supporters of the causes championed by the Wallace Global Fund, this decision translates into a significantly higher immediate influx of capital for grassroots organizers and advocacy. The change marks a departure from typical foundation spending, which may force other large institutions to reconsider their own long-term distribution policies.
The takeaway
Foundations are increasingly facing pressure to weigh the benefits of long-term asset preservation against the urgent need for immediate social investment. Donors and stakeholders may find that this spend-down approach provides a model for maximizing the tangible output of charitable capital in volatile times.
Further reading
Learn more about shifting institutional trends in Philanthropy.
Source note: This article includes information reported by Alliance magazine.
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