[Foundation-l] Putting the Foundation back in WMF

Ray Saintonge saintonge at telus.net
Sun Nov 18 00:20:34 UTC 2007


Thomas Dalton wrote:
> On 17/11/2007, Ray Saintonge <saintonge at telus.net> wrote:
>   
>> Thomas Dalton wrote:
>>     
>>> Being able to fund activities off capital gains would be very useful,
>>> but really it requires large endowments to work. Building up a fund
>>> from small fundraisers isn't going to work.
>>>       
>> Capital gains are not a reliable investment, especially not in the short
>> term.  Short term capital gains are mostly a matter of good luck.
>>     
> Putting the cash in a savings account still constitutes capital gains.
> The term doesn't refer just to risky investments.
Money put into a savings account yields interest income, not capital gains.

A capital gain is the increase in the value of an asset.  When the 
market value of a company's share increases from its original cost that 
is a capital gain.  When you sell a piece of land for more than you paid 
for it without having altered it since you bought it, that is a capital 
gain.  If these values go down, it is a capital loss.

Ec



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