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Giving by foundations

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 (decline of 0.8 percent adjusted for inflation) from the revised foundation grantmaking total for 2007 of $40.0 billion, which the Foundation Center released in March 2009. The final number for 2007 is based on IRS Forms 990 and 990-PF filed by foundations. 1

Despite a recession and a stock market decline, the Foundation Center estimated that foundation grantmaking in 2008 surpassed all prior records. Grants made in 2008 include distributions from the Bill & Melinda Gates Foundation in the amount of $2.8 billion, 2 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 2007.3

While overall grantmaking increased among the foundations surveyed for 2008 giving estimates, the Foundation Center reported that nearly half ( 46. 9 percent) reduced their giving during the year. 4

According to the Foundation Center, about 90 percent of foundations surveyed in 2009 reported making grants from investment earnings. 5 Because grants are issued from investment earnings, grantmaking is considered “new money” for philanthropy.

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

 

Giving USA findings Giving USA reports the Foundation Center’s estimates of foundation grant-making for the year just concluded. 6 Giving USA adjusted the Foundation Center’s figure of $45.64 billion to remove $4.43 billion of corporate foundation grantmaking and added it to the corporate giving estimate for Giving USA. The estimate provided here for 2008 includes only grant-making by independent, community, and operating foundations.

The Foundation Center attributes the 3.0 percent growth (decline of

0.8 percent adjusted for inflation) in grantmaking by independent, community, and operating foundations to:

Two years of double-digit gains in foundation assets (2006 and 2007), which are included in the rolling averages used to determine grantmaking levels at many of the top funders.

Establishment of new foundations in recent years and major contributions