FoundationMark models indicate that U.S. foundations’ assets rose by nearly $60 billion, or about 3.8%, in the third quarter of 2024 pushing assets to $1.66 trillion. Year-to-date assets have risen by $176 billion or 11.9%
Foundation asset levels are a function of three variables: incoming contributions, outgoing grants and expenses, and investment performance. The Grantmaker Investment Value (“GIV”) Index gained 13.6% year-to-date, correspondingly investment performance accounted for most of the gain with the balance of the difference comprised of outflows for grants and expenses somewhat offset by new contributions.
- Incoming Contributions: FoundationMark models forecast incoming contributions of about $80 billion, slightly lower than immediate prior years, but still higher than the 10 year trend. (link)
- Outgoing Grants and Expenses: Total disbursements are expected to be about $122 billion, comprised of about $106 billion in grants and charitable expenses and $16 billion in noncharitable expenses, of which investment expenses (over $10 billion) represents the lion’s share.
- Investment Gains: FoundationMark estimates that foundations’ investment portfolios notched gains of over $200 billion so far in 2024.
*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.