February 1, 2017 | Read Time: 2 minutes
Women at small foundations earn about 85 percent of the average salary of men in similar positions, according to a survey released today by Exponent Philanthropy, a membership organization of small and family foundations.
The gap was more pronounced at the smallest grant makers. Foundations with $10 million to $25 million in assets paid top women administrators $102,095, on average, compared with near nearly $135,000 for men. Women lead 57 percent of small foundations, the survey found.
“This is a community dominated by women, yet gender pay inequity exists,” said Henry Berman, Exponent’s chief executive officer. “It is essentially mirroring what is going on in society as a whole.”
Exponent Philanthropy collected data from 495 of its members. About three-quarters of the survey responses came from foundations with assets of less than $75 million.
The survey also found that many small foundations, despite employing few staff members, have instituted grant-making policies and practices intended to make their donations more effective.
For instance, 63 percent of the grant makers surveyed collaborate with other foundations, and 81 percent periodically review grant-making strategies. Nearly three-quarters of small foundations provide board members with reports on grant results.
“Leanly staffed foundations are continuing to increase the professionalization of their operations,” Mr. Berman said. “Even if it is just a family sitting around the kitchen table, it doesn’t mean they can’t act in a professional manner.”
The survey also showed that board members are expected to do more than simply write checks, Mr. Berman said. For instance, 79 percent of trustees go on grantee site visits, 63 percent meet regularly with other supporters, and 61 percent attend conferences or take part in other educational offerings.
“They’re not just dialing it in,” he says. They’re committed to it and really taking it seriously.”
While he was pleased by the progress small foundations have made in professionalizing their approach, Mr. Berman said he was “impatient” for further progress. For instance, only 22 foundations have a donor-intent statement and 16 percent have a board succession plan. Of those surveyed, only 23 percent have a strategic or long-range plan.
The report also found:
- The median grant size was about $22,000.
- Slightly more than 10 percent of small foundations engaged in impact investing, such as a direct investment in a private company or a community-development financial institution. Of those making impact investments, 40 percent initiated the practice within the past five years,
- Small-foundation investment returns in 2015 were flat, trailing the 1.4 percent growth of the S&P 500 index.
