FoundationMark models indicate that U.S. foundations’ assets rose by $100 billion, over 8%, in the first half of 2023. The most recent three quarters have all shown asset growth of about 4% per quarter after a terrible stretch in the first none months of 2022, which saw assets drop by over $250 billion.
Foundation asset levels are a function of three variables: incoming contributions, outgoing grants and expenses, and investment performance. The Grantmaker Investment Value (“GIV”) Index was up 11.3% in the first six months of 2023, correspondingly investment performance accounted for most of the gain with the balance comprised of outflows for grants and expenses somewhat offset by new contributions.
*The data in the chart above combines historic information drawn from foundations’ reported asset levels and disbursements obtained from their annual tax filings, along with projected values based on the FoundationMark Grantmaker Investment Value (“GIV”) Index which estimates monthly returns for the foundation universe based on reported asset allocations and market returns. Gifts, grants, and operating expenses projections are based on historic disbursement ranges.