Measuring Giving in Dollars and as a Percent of Assets Examining foundation giving is best approached from two perspectives, first, in terms of actual dollars distributed by foundations each year, and secondly as a percentage of assets. Below we provide answers to both. In doing so, we hope to demonstrate the relationship between asset levels and giving, as well as provide … [Read more...] about How Much do Foundations Give Per Year?
Last summer our research indicated that foundation assets crossed the $1 trillion threshold for the first time at some point in 2017, about 18 months prior to our discovery. Curious to learn more about this watershed moment, we looked for news stories but found none. After triple checking all our data, we mentioned this to the leading philanthropic publication, the Chronicle … [Read more...] about Measuring Foundation Asset Levels
Mandated Five Percent is a Floor Not a Ceiling Most people in the philanthropic world are familiar with the 5% payout requirement that nonprofits must observe to maintain their tax exempt status. Therefor, it's quite natural to assume that foundations take that 5% rate as scripture and rarely deviate from it. The filings of some of the largest foundations - Ford, Lilly, … [Read more...] about Foundations Pay Out 8% of Average Assets in Grants and Expenses per Year
One of the most basic concepts in portfolio management is that asset allocation typically determines the lion's share of investment returns. If your portfolio is mostly U.S. stocks, it will probably perform similarly to the stock market indices (assuming a diversified portfolio), alternatively if your portfolio has a significant weight in bonds, it will probably skew to fixed … [Read more...] about Asset Allocation Different Perspectives
How Much are Foundation Assets Down? Preliminary March estimates from our affiliate, FoundationMark, indicate that foundation assets are down about 12.7% since the beginning of the year. As seen in the chart and table above, the coronavirus pandemic has had a chilling impact on global equity markets, just one month after … [Read more...] about First Quarter Update: How the Stock Market Decline is Likely to Affect Foundation Assets and Giving