Foundation Spending: Where the Money Goes

Foundations are required under law to spend at least 5 percent of their assets each year on charitable purposes. Grant makers can include a portion of the amount they spend on operating costs to meet that standard. A new study shows how the spending on administrative costs compares with the percentage devoted to charitable grants. Community foundations, which raise money from a large number of people, are not required to follow the payout rule.

Percentage of Charitable Spending That Goes for Administrative Costs
Private Foundations
Total compensation	46%
Professional fees	19%
Other expenses	19%
Occupancy	6%
Travel, conferences and meetings	6%
Printing and publications	2%
Interest and taxes	2%
Community Foundations
Other expenses	50.9%
Total compensation	36.3%
Interest and depreciation	4.1%
Occupancy	3.8%
Travel and expenses	2.5%
Printing and publications	1.7%
Other professional fees	1%
Corporate Foundations
Other expenses	66.2%
Professional fees	15.1%
Total compensation	12.1%
Printing and publications	3.8%
Travel, conferences, and meetings	1.7%
Occupancy	0.6%
Taxes	0.5%

Independent foundations
Community foundations
Corporate foundations

What Foundation Executives Make: Compensation Ranges for CEO’s
Less than $30,000	9.3%
	7.4%
$30,000 to $59,999	11.9%
	27.6%
$60,000 to $99,999	19.8%
	35.4%
$100,000 to $149,999	24.0%
	16.9%
$150,000 to $199,999	23.0%
	9.1%
$200,000 or more	11.9%
	3.7%
Percentage Foundations Spend on Compensation Compared With Their Giving
Less than $500,000	5.0%
	10.6%
	1.7%
$500,000 to $999,999	4.4%
	5.9%
	1.8%
$1-million to $4,999,999	4.2%
	5.5%
	3.1%
$5-million to $9,999,999	3.9%
	3.5%
	3.4%
$10-million to $49,999,999	4.3%
	3.0%
	1.5%
More than $50-million	2.9%
	2.8%
	0%
All	4.5%
	4.7%
	1.8%
NOTE: Dollar figures are the amount the foundations give away annually.
Trustee Compensation
Percentage of foundations that compensate trustees	23.8%
	3.2%
	7.6%
Percentage of individual trustees who receive compensation	19.6%
	0.6%
	3.2%
SOURCE: Urban Institute