FoundationMark models indicate that U.S. foundations’ assets fell $290 billion in the nine months ended September 30, 2022. Equity and fixed income prices have come under a great deal of pressure during the year due to concern about inflation and the possibility of a recession. The FoundationMark estimates point to asset levels down 22.3% in 2022, bringing them close to 2017 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 20% in the nine months to September 30, 2022, correspondingly investment performance accounted for over $250 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.