Giving by foundations, 1968–2008 ($ in billions)

41. 21

31. 41

26. 84

22. 47

14. 20

17.01

9. 90

11. 19

9. 70

9. 53

7. 17

7. 78

6.15

3. 60

1. 60

2.00

2. 17

Current dollars Inflation-adjusted dollars

1968 1973 1978 1983 1988 1993 1998 2003 2008 Source: The Foundation Center. Excludes giving by corporate foundations, which is in giving by corporations.

 

Grantmaking by independent, community, and operating foundations reached an estimated $41.21 billion in 2008, according to a survey by the Foundation Center. This is an increase of 3.0 percent (a drop of 0.8 percent adjusted for inflation) from the revised foundation grantmaking total of $40.0 billion released by the Foundation Center in spring 2009. The final number for 2007 is based on IRS Forms 990 and 990-PF filed by foundations.

Despite a recession and a stock market decline, foundation grantmaking in 2008 is estimated by the Foundation Center to have surpassed all prior records. Grants made in 2008 include distributions from the Bill & Melinda Gates Foundation in the amount of $2.8 billion as well as grantmaking by other private, community, and operating foundations.

The continued growth of foundation grantmaking in 2008 reflects strong foundation asset growth in 2006 and 2007.

While overall grantmaking increased among the foundations surveyed for 2008 giving estimates, the Foundation Center found that nearly half ( 46. 9 percent) reduced their giving in the year.

According to the Foundation Center, about 90 percent of foundations surveyed make grants from investment earnings. Grantmaking is considered “new money” for philanthropy. This may change as more donors arrange for their gifts to foundations to be “spent down” rather than invested in perpetuity.

The Foundation Center cautioned that grantmaking is expected to decline in 2009, although the reduction will likely be far less than market losses might suggest.