Assets Grew 14% at Small and Midsize Foundations Last Year

Assets at small to midsize foundations grew by 14 percent in 2013 and gave out more than 7 percent of their assets, according to a report released today.

Those grant makers, which have holdings of less than $50-million, account for 98 percent of all U.S. foundations but only about 30 percent of all foundation wealth nationally, according to the study by Foundation Source, a firm that provides advice and administrative support to grant makers.

Assets at the 714 grant makers in the report (all of which are Foundation Source clients) grew to $2.7-billion by the end of last year compared with nearly $2.4-billion in 2012.

These foundations awarded a total of $148-million to charity last year.

The growth in assets was primarily the result of strong investment performance and new contributions from donors to their foundations, says Andrew Schulz, the firm’s executive vice president and the author of the report.

Donors with foundations in the $10-million to $50-million asset range gave $1.05 to their fund for every $1 their foundation gave to charity, according to the study.

“What we’re seeing at these foundations is there is a serious commitment to giving irrevocable gifts to philanthropy, and then donors are adding more to that,” says Mr. Schulz. “So I think the generosity, the high level of grant making, suggests they have an impact beyond what our conventional understanding of size would be.”

The report shows that grant makers with assets under $10-million gave away almost as much in general support as they gave for programs, while foundations with holdings from $10-million to $50-million gave more than twice as much to programs as to general support.

Among the other findings:

• More than one third of the foundations distributed 10 percent or more of their assets to nonprofits, double the 5 percent required by law.
• Of all grants these foundations gave last year, 29 percent ($42.8-million) went to support education, 17 percent ($25.7-million) went to human services, and 12 percent to arts, culture and the humanities.
• Only 5 percent was directed to the environment and animal welfare and 5 percent to religious groups.

A free copy of “The 2014 Annual Report of Private Foundations” can be found on the Foundation Source website.