May 3, 2001 | Read Time: 2 minutes
By GRANT WILLIAMS
Many foundations that make a large number of grants to conservative causes and many of those that make grants to mostly liberal ones tend to give away a significantly bigger share of their assets each year than required by law, a new report says. And both types of foundations distribute a larger share than the country’s biggest private foundations.
The report, titled “Payout for Change,” has been published by the National Network of Grantmakers, whose membership includes nearly 200 foundations that support “social-change” causes.
In 1999, the National Network of Grantmakers began promoting a “1% More for Democracy” campaign, calling upon its members to increase their annual payout rate of net assets by 1 percent above the legally required minimum of 5 percent, on average.
The report notes that the particular concern of the National Network of Grantmakers in promoting higher payout rates is to “move more money to social and economic justice work.”
In fact, 86 private foundations that are members of the network distributed in grants an average 8.4 percent of their assets in 1998, the report said.
By comparison, the report said that 23 of the country’s wealthiest foundations had average grants payouts of only 3 percent in 1998.
A review of a dozen “foundations that fund the conservative right and fund organizations apparently in direct opposition to our work” revealed that the foundations awarded an average of 7.8 percent of assets in 1998, “keeping pace with progressive funders,” the report said. Among the 12 foundations examined: the Lynde and Harry Bradley Foundation and the John M. Olin Foundation.
In addition to examining the differences between liberal and conservative funds, the report explains how foundations can find ways to give more money away and analyzes the history behind payout requirements.
Copies of the report, which cost $12 each, may be ordered by contacting the National Network of Grantmakers through its Web site, http://www.nng.org; by sending an e-mail message to nng@nng.org; or by calling the organization at (619) 231-1348.
