Giving by U.S. Foundations Rose 18% in 2000, New Report Finds

By ZIYA SERDAR TUMGOREN

American foundations increased their grant making by $4.3-billion last

year, according to a new report by the Foundation Center. Foundations last year gave an estimated $27.6-billion — an 18.4 percent increase from 1999, the report says.

The report, entitled “Foundation Growth and Giving Estimates: 2000 Preview,” attributed the increase to the significant gain in assets held by grant makers: Foundation endowments grew by $63.6-billion last year.

Last year’s expansion was the result of both gains in foundation investment earnings and new donations from foundation benefactors, and follows several years of substantial increases in giving. Experts say the downturn in the stock market, and other weaknesses in the economy, could be a sign that grant making won’t increase as much in coming years.

In 2000, community foundations grew the most among philanthropic institutions: Their 22-percent increase in giving came on top of a nearly 27-percent increase in 1999. Private foundations increased their donations by 20 percent last year, following a similar increase in 1999. Corporate foundations gave 9 percent more last year, compared with a 15-percent increase in giving in 1999.

In addition to releasing preliminary figures for 2000, the Foundation Center also released a report, “Foundation Giving Trends: Update on Funding Priorities,” showing grant-making trends in 1999. The report found that education received the biggest share of foundation giving, capturing nearly a quarter of all grant dollars. Health causes followed, receiving 17 percent of all foundation dollars.

Both reports are part of the Foundations Today Series, published by the Foundation Center. They are available for $95, together with the three other reports in the series, from the Foundation Center, Dept. NO5, 79 Fifth Avenue, New York, N.Y. 10003-3076; http://fdncenter.org.