As investors suffer the slings and arrows of today’s market volatility, charities also feel the pain as donations begin to dry up. Private foundations face a particular dilemma.

Required by law to distribute at least 5 per cent of their endowment value each year, foundations need a return of 8 to 9 per cent just to stay even after inflation and expenses, says Janine Racanelli, head of JPMorgan’s Advice Lab.