Community foundations suffered steep investment losses last year, ending a five-year streak of positive returns and damaging their purchasing power, according to a new report from the Council on Foundations, an organization that represents grant makers.

Stocks accounted for just over 53 percent of community foundations investment portfolios last year, down from 61 percent in 2007. Alternative investments, such as hedge funds, accounted for more than 20 percent of foundation portfolios last year, up from less than 1 percent nine years earlier.

The Council on Foundations report, 2008 Investment Performance and Practices of Community Foundations can be ordered from the councils Web site, by faxing an order form to 703-879-0988

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