Benjamin Franklin's will is an extraordinary document in the history of endowments.  It created funds in Philadelphia and Boston to last two hundred years.   The funds would lend money at interest for good causes -- to help young "artifacers" like himself get ahead.  After 100 years, part of the trust  would be taken to create educational institutions and the rest re-invested for another century.
Read Benjamin Franklin's will and related materials. Consider the following questions for discussion in class. Calculations may be necessary to answer the questions.

The text of the  will

Eighteenth Century Interest Rate Data
 

Questions:
 

The Plan

1. What was the intention of his gifts to Boston and Philadelphia and why?

2. What role did finance play in the gifts?

3. What was the form of the endowment - who managed it and how was it structured?

4. What rate of return did he expect? Was it the prevailing market rate? How would you assess this?

5. What was the source of the expected return?

6. Were his goals realistic?

7. What kind of futurist was Franklin?
 

The Realization
 

1. Can you calculate the rate of return on Franklin's endowments?

2. Would you have structured the endowments differently?

3. Would you consider creating the same kind of endowment when you die? Why or why not?

4. How effective were the endowments? Do they have a future as well?

5. What lessons about endowment management do you take away from the case?