FoundationMark models indicate that U.S. foundations’ assets rose by about $70 billion, or about 5%, in 2023 through September despite a pullback in the most recent quarter as financial markets wobbled.
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 8.2% in the first nine 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.
New contributions in 2020 and 2021 were historically strong, but contributions can be volatile, so we continue to forecast incoming contribution in line with the ten year average.
*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.