FoundationMark models indicate that U.S. foundations’ assets rose by $40 billion, a bit less than 4%, in the first quarter of 2023. After a very difficult 2022 in which foundation assets dropped an estimated $250 bullion, or nearly 20%, the first quarter returns are encouraging.
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 5.5% in the first three 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.