Foundations Gave $29-Billion Last Year, a 5.1% Increase, Report Says

Grant making by the nation’s foundations grew an estimated 5.1 percent in 2001, a much slower

rate than in previous years, according to a new report released this month.

Foundations distributed an estimated $29-billion to charities last year, a $1.4-billion increase over the $27.6-billion awarded in 2000, according to the report by the Foundation Center, in New York. Giving by private grant makers grew 5.4 percent; by community foundations, 4.6 percent; and by corporate foundations, 2.6 percent, the report said.

The relatively small increases in 2001 grant making — which observers attribute to the drop in stock values in 2000 — pale in comparison to the growth in giving during previous years. Total foundation giving jumped 18.2 percent in 2000, and almost 20 percent in 1999, because of the rise in grant makers’ assets and the creation of new foundations.

Foundation assets increased by 8.4 percent in 2000, from $448.6-billion to $486.1-billion, and about 10,000 new funds have been established since 1998, bringing the total number of grant makers to more than 50,000, according to the report. In 2000, the report said, 6,400 foundations were established, the largest number of new grant makers created in one year.

The Foundation Center figures for 2001 are estimates based on a sample of more than 1,800 foundations and are subject to revision when figures from a larger number of grant makers are available.

The report, titled “Foundation Growth and Giving Estimates: 2001 Preview,” is free online at http://fdncenter.org.

The report is part of a series of five reports, published by the Foundation Center, called the “Foundations Today Series.” To order copies of the series, contact the Foundation Center, Department KP, 79 Fifth Avenue, New York, N.Y. 10003-3076; (800) 424-9836; in New York City, (212) 807-3690; fax (212) 807-3691.