Small Foundations Gave Bigger Share in 2011 Than Large Ones, Study Finds

Small and midsize private foundations gave, on average, a larger share of their assets away in 2011 compared with their bigger counterparts and increased their grant making sharply over 2010 levels, according to a new study.

While such foundations account for 98 percent of the nation’s 78,000 foundations, they hold just 31 percent of all foundation assets.

Still, they are an important source of giving, especially for local charities.

Foundations with assets of under $10-million awarded nearly 21 percent more in grants in 2011 than they did in 2010, according to an analysis of 720 grant makers by Foundation Source, a management consultancy that works with small philanthropies.

But the picture isn’t all rosy. Foundations with assets of $10-million to $50-million awarded 8 percent less from 2010 to 2011.

The study also found that small foundations gave a big share of their assets away in 2011. Grant makers with assets of $10-million to $50-million distribute an average of 12 percent of their endowments to charities. Foundations are required by law to give at least 5 percent of their assets annually, on average, over three years. Among all foundations, the share of assets distributed in 2009, the most recent year available, was about 7 percent, according to the Foundation Center.

Giving to Causes

The study of small and mid-sized foundations also found that grants to:

• Arts and culture organizations increased by 41 percent from 2010 to 2011—the largest rise among all causes tracked in the survey—and now account for more than 11 percent of giving by such foundations.
• Schools, colleges, and other education groups declined by 3 percent in the same period and represent 21 percent of all grants by such foundations.
• Science and technology projects fell more than any other category—by 52 percent from 2010 to 2011. But they represent less than 1 percent of grants by the foundations.