November 9, 2006 | Read Time: 2 minutes
Despite a flurry of donations spurred by Hurricane Katrina, giving remained essentially flat last year among foundations that operate with few or no paid staff members, says a new report. Nearly $2.6-billion was distributed to charity in 2005 by members of the Association of Small Foundations, in Washington, which compiled the report.
Giving isn’t likely to increase much this year, and could decrease, says Tim Walter, the association’s chief executive officer. He says foundation investments have not been growing fast enough to allow more giving.
The association’s 3,000 members held approximately $55.6-billion in assets last year, an increase of $1.2-billion from 2004. Foundations that belong to the group held assets ranging from about $200,000 to $1-billion last year. The median was $8.3-million, meaning that half of the foundations had less in assets and half had more.
However, those figures are likely to grow. Nineteen percent of the survey’s 920 respondents — many of whom run their own family foundations — anticipated adding gifts of $50-million or more to their foundations, while another 31 percent intend to give at least $25-million to their funds. Among all respondents, 40 percent planned additional gifts and half that number said contributions would come in the next five years.
Nearly a third of survey respondents made grants to aid Hurricane Katrina relief efforts. Such grants totaled nearly $53-million, with a median award of $10,000.
Education groups received the biggest share of the $2.6-billion donated by small foundations, claiming 31 percent of total dollars, followed by human services (20.3 percent), health (13.8 percent), and arts and culture (9.2 percent). The median total grant dollars awarded per foundation was $361,550, and the median grant was $11,223.
Most grants — 65 percent — were directed to the region where the foundation is located, while 11 percent of grants supported national causes and 4 percent helped international causes.
The report, “2006-2007 Foundation Operations and Management Survey,” is available for $95. Association members can receive one copy free and additional copies for $25. Orders can be placed by calling the Association of Small Foundations at (202) 580-6560.
