A Sharp Rise in Grants to Charities

8.1% increase by foundations follows a two-year decline

Foundation giving increased by 8.1 percent in 2004 following a two-year decline, according to a new study by the Foundation Center, in New York.

Grant dollars awarded by the 1,172 foundations surveyed rose to $15.5-billion.

The average grant size increased from $118,649 to $122,355, although the median grant amount remained unchanged at $25,000, meaning that half the grants were larger and half were smaller.

The total value of grants of $10-million or more jumped nearly 33 percent, to $2.4-billion, according to the study.

The growth was due largely to a $750-million grant from the Bill & Melinda Gates Foundation to the Vaccine Fund, in Washington, to support the work of the Global Alliance for Vaccines and Immunization.

Giving to science and technology projects increased by the largest margin, followed by support for health, international affairs, and arts and culture. Religion and health groups showed the greatest growth in the number of grants received.

Environmental and social-sciences groups were the only types of organization that saw a drop in both grant dollars and number of grants. Support for human-services groups declined 3.8 percent, to $2,146,396.

Education received the largest share of total giving, 23 percent or $3.6-billion. However, foundation support for education grew at a rate of 3.4 percent, far below the gain in overall grant dollars.

Among organizations that work with specific types of recipients, groups that serve children and youths received the biggest share, 20.6 percent or $3.2-billion. Grants to organizations that serve gays and lesbians increased the most sharply (by 64.4 percent), followed by grants to groups that help people with HIV/AIDS (up 62 percent) and those that work with military personnel and veterans (up 53.9 percent). Giving to organizations that assist single parents dropped by more than 20 percent, as did donations to organizations that aid Asians and Pacific Islanders and charities that serve women and girls.

Unrestricted Grants Grow

The study also examined trends in how foundations chose to earmark their money. Unrestricted grants grew 6.8 percent, to $3.2-billion, from 2001 to 2004, a period in which other types of grants declined. But program support continued to account for the biggest share of grant dollars in 2004 (46.8 percent), followed by general support (21 percent), capital support (16.8 percent), and research assistance (8.8 percent).

Foundations in the Northeast awarded more money than grant makers in other parts of the United States, according to the study. Those funds, along with grant makers in the Midwest and South, gave more of their money to education than to other causes. Grant makers in the West donated the largest percentage of their money to health groups.

The 100 largest foundations surveyed also focused their giving on health, as well as on international affairs and the social sciences. Smaller foundations tended to give to education, human services, arts and culture, and religion, the study found.

Human services was the most popular area of support for community foundations. Private foundations gave mostly to health, environment and animals, and international affairs.

The study, “Foundation Giving Trends: An Update on Funding Priorities,” is part of the Foundation Center’s annual Foundations Today Series. It can be purchased at http://www.foundationcenter.org/marketplace for $45 or as part of the three-report series for $95.

HOW FOUNDATION GIVING TO CHARITABLE CAUSES CHANGED FROM 2003 TO 2004 Arts and culture 10.6% Education 3.4% Environment and animals -8.9% Human services -3.8% International affairs and development 16.4% Public and society benefit 9.8% Religion 6.5% Science and technology 31.2% Social science -1.8% All 8.1% FOUNDATION GIVING TRENDS, 2004 Grant Awards, by Size Value of grants Number of grants Percentage of total Dollar amount in thousands Percentage of total $10,000 to $24,999 50,678 40.1% $698,573 4.5% $25,000 to $49,999 28,958 22.9% $891,544 5.8% $50,000 to $99,999 20,031 15.8% $1,233,279 8.0% $100,000 to $499,999 21,701 17.2% $4,034,960 26.1% $500,000 to $999,999 2,792 2.2% $1,726,127 11.2% $1-million to $4,999,999 2,097 1.7% $3,506,053 22.7% $5-million to $9,999,999 159 0.1% $1,022,093 6.6% $10-million and over 81 0.1% $2,364,965 15.3% Foundation Grants, by Region Percentage of grant dollars awarded Percentage of grant dollars received Northeast 32.1% 28.4% Midwest 21.3% 18.5% South 17.8% 20.5% West 27.4% 20.1% NOTE: A total of 7.1 percent of grant dollars was provided to organizations outside the United States. Causes Supported by Foundations Subject Dollar amount Percent Number of grants Percent Arts and culture $1,979,541,000 12.8% $18,516 14.6% Education $3,625,448,000 23.4% $25,689 20.3% Environment and animals $813,320,000 5.3% $7,374 5.8% Health $3,447,203,000 22.3% $16,208 12.8% Human services $2,146,396,000 13.9% $32,294 25.5% International affairs and development $419,965,000 2.7% $2,796 2.2% Public and society benefit* $2,004,661,000 13.0% $16,097 12.7% Religion $362,044,000 2.3% $3,907 3.1% Science and technology $454,848,000 2.9% $2,214 1.8% Social science $214,842,000 1.4% $1,307 1.0% Other $9,329,000 0.1% $95 0.1% Total $15,477,595,000 100.0% $126,497 100.0% * Includes civil rights and social action, community improvement, philanthropy and volunteerism, and public affairs. NOTE: Totals may not add up due to rounding. Distribution of Grants, by Foundation Type Independent foundations Corporate foundations Community foundations Amount Percent Amount Percent Amount Percent Arts and culture $1,364,884,000 11.2% $205,146,000 11.5% $160,197,000 13.9% Education $2,850,159,000 23.5% $453,401,000 25.5% $282,400,000 24.4% Environment and animals $702,092,000 5.8% $51,804,000 2.9% $59,252,000 5.1% Health $3,082,717,000 25.4% $201,570,000 11.3% $141,060,000 12.2% Human services $1,526,666,000 12.6% $335,174,000 18.8% $257,314,000 22.3% International affairs and development $336,895,000 2.8% $46,241,000 2.6% $21,463,000 1.9% Public and society benefit $1,378,290,000 11.3% $430,716,000 24.2% $176,188,000 15.3% Religion $292,823,000 2.4% $10,095,000 0.6% $41,826,000 3.6% Science and technology $405,429,000 3.3% $35,209,000 2.0% $9,713,000 0.8% Social science $201,985,000 1.7% $8,232,000 0.5% $3,810,000 0.3% Other $6,476,000 0.1% $894,000 0.1% $1,958,000 0.2% Total grants $12,148,416,000 100.0% $1,778,482,000 100.0% $1,155,180,000 100.0% NOTE: Percentages may not add up due to rounding. SOURCE: Foundation Center, “Foundation Giving Trends”