How The Chronicle’s 2002 Foundation Survey Was Compiled

The Chronicle’s annual foundation survey is based on financial information provided by 152 of the

nation’s largest private grant makers.

The foundations in the survey held combined assets of $176.6-billion in 2001 and approved $9.5-billion in grants, not counting 10 foundations that did not provide such data for their 2001 fiscal year.

The Chronicle selected most of the foundations in the survey using information supplied by the Foundation Center, in New York. The Chronicle asked the center to rank the nation’s 150 largest foundations by their assets and the amount they gave away during the year. The Chronicle included other foundations in the survey because they have ranked among the largest in the past or because the newspaper expected them to do so in the future.

To be included in the survey, a foundation had to hold at least $230-million in assets or have awarded at least $9-million in grants in its most recent fiscal year. Seventy-two grant makers of that size declined to participate in the survey. Figures for those organizations come from their most recently filed Form 990-PF informational tax returns.

Officials at some of the foundations that declined to participate in the survey said they have policies prohibiting responses to questionnaires. Others said they do not give out unaudited financial figures. Still others said they did not have time to respond.

The Chronicle sent foundations its request for their Forms 990-PF during the last week in January so that organizations would have plenty of time to comply with federal law, which requires that the form be provided within 30 days following a request. Six organizations did not send The Chronicle their most recently completed Forms 990-PF in time to be included in the survey. They are the Atlantic Foundation of New York (whose 2000 return arrived as The Chronicle went to press), the Cullen Foundation (Houston), the Gilder Foundation (New York), the Howard Gilman Foundation (New York), the O’Donnell Foundation (Dallas), and the Ross Family Charitable Foundation (New York).

Officials of the Starr Foundation, in New York, said that the foundation’s Form 990-PF for fiscal 2000 was still at its auditors and that the most recent form available was for fiscal 1999.

Most of the foundations that did respond to the survey said their figures for 2001 and 2002 were estimated or unaudited and could change.

Readers of the survey results should take care in comparing a foundation’s giving from year to year. A sharp increase or decrease from one year to the next in the amount of grants approved or paid may not necessarily mean a change in the foundation’s status or giving priorities. Many foundations pledge large sums to be paid out over several years.

It also is important to keep in mind that foundations have various means of counting the number of grants approved.

For example, one foundation may count each scholarship it awards as one grant, while another may count all of the money that goes to its scholarship program as a single grant. In some cases, the number of grants reported by a foundation may not reflect the actual number of organizations that receive money from the foundation, because some organizations may receive multiple grants.

In addition, the number of grants awarded may not reflect the opportunity for nonprofit organizations to compete for grant money. Because some foundations give only to preselected organizations or do not accept unsolicited proposals, not all the grants represent proposals chosen through a competitive application process.

The survey was compiled under the direction of Martha Voelz with the assistance of Marni D. Larose, Nicole Lewis, and Ian Wilhelm.