Institutional Fragility Simulator

Compare how traditional endowment-funded institutions vs PSC-backed institutions respond to economic shocks, donor loss, and sector crises.

Shock Scenario

Institution Parameters

Initial Endowment: $5.0M

Annual Donations: $500K

Operating Costs: $400K

PSC Recycling Rate: 80%

Shock Occurs: Year 5

Traditional Model

Survives

PSC Model

Survives

Reserve Levels Over Time

Simulation Analysis

Under a Economic Recession scenario starting in Year 5, the traditional endowment model maintains solvency through the 20-year period. The PSC model remains stable due to recycled capital providing additional income streams during the crisis.

Why PSC Builds Resilience

•Diversified income: Recycled capital provides revenue independent of new donations
•Counter-cyclical buffer: Previous cycles' beneficiaries continue repaying during downturns
•Compounding effect: Longer operation means more recycled capital in the system