The differences are evident when examining their investment philosophies. For a charity, even those with highly experienced investment managers and sophisticated board members, almost all of their endowment funds produce income not subject to tax in their nonprofit organization.
Income is income, and it's all generally exempt from income tax.
The same thing can be said about money managers of pension and retirement accounts. Neither has to think about tax efficiency. Consider Susan Barry's CRAT as an example. While she will receive some tax deduction for the gift of a future interest to charity, of more concern to her is the tax treatment of the income she receives from her trust. Considering the Prudent Investor Rule, suppose the trustee chose to use a portfolio of stocks and bonds, believing this to be the most beneficial for both the income and remainder beneficiary.