FoundationMark models indicate that U.S. foundations’ assets fell nearly $250 billion in 2022. After three consecutive down quarters, the fourth quarter saw a significant bounce of over 6% to reduce the drop from the yearly low in September. FoundationMark estimates point to asset levels down 18.9% in 2022, puttting them back to 2019 levels
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 down over 15.5% in 2022, correspondingly investment performance accounted for over $200 billion of the reduction in assets 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.