Grant Making by Big Foundations Rose in 2007 Despite Worrisome Economic Signs

The nation’s largest foundations distributed 13.2 percent more in 2007 than they did in 2006, reaching $21.6-billion, according to a new survey by the Foundation Center.

The increase came despite signs, particularly in the latter half of the year, that the economy was in a downturn, says the report on the survey.

Grants to environmental and animal-welfare causes grew the most, rising 28.5 percent over 2006 figures.

Grant makers also increased spending in human services (up 22.2 percent), science and technology (15.5 percent), public affairs and societal benefit (also 15.5 percent), education (14.8 percent), the social sciences (14 percent), health (11.7 percent), and religion (9.7 percent).

Giving to international affairs, development, and peace declined by 4.3 percent while grants for arts and culture dropped 1.5 percent.

Of the $21.6-billion awarded, education and health received the largest portion of money — 23 percent each, representing nearly half of all grant dollars.

The causes that received the next-largest shares of 2007 foundation dollars were human services (15 percent) and public affairs and societal benefit and the arts and culture, which each received 11 percent.

One-half of grant dollars went to support specific programs, while 19 percent went to general support, and 17 percent went to capital projects. (The remaining grants supported research and student-aid programs.)

Large Donations

The report analyzes grants of $10,000 or more awarded by 1,339 of the largest private and community foundations in the United States in 2007, accounting for roughly half of all giving by American foundations.

Among the other key findings:

• Foundations awarded a record 188 grants of $10-million or more in 2007.

• Of the 10 largest awards, eight were made by the Bill & Melinda Gates Foundation, primarily to finance health and international-development programs.

  In 2006, foundations made 156 grants of at least $10-million; both numbers far outstripped the 21 grants of that size made in 1997.

• Despite the modest decline in support for internationalaffairs projects, grant making for all types of international activities, including education, health, and other efforts, reached an all-time high, accounting for 23.4 percent of grant dollars in 2007.

• Grants benefiting economically disadvantaged people received the largest share of grant dollars compared with those awarded to aid any other specific group of people, receiving approximately $5.3-billion.

• The total number of grants awarded by foundations rose 7.1 percent, from 140,484 to 150,392.

• Foundations in the Midwest, Northeast, and South awarded the largest percentage of their dollars to educationrelated causes, while funds in the West favored support for health programs.

A summary of the report, “Foundation Giving Trends (2009 Edition),” is available on the center’s Web site.

The complete report is available for $45, or as part of the center’s Foundations Today series, which is available for $95.