« Weekend Link Roundup (June 7-8, 2014) | Main | Football (Soccer), Democracy, and Philanthropy »

Have Foundations Recovered From the Great Recession?

June 09, 2014

The answer seems straightforward. According to a preview of the forthcoming edition of Key Facts on U.S. Foundations, estimated foundation giving reached nearly $55 billion last year, a record. That was close to $8 billion more than in 2008 — the peak year for foundation giving before the economic downturn. Even after adjusting for inflation, the country's independent, corporate, community, and operating foundations gave $3.5 billion more in 2013 than they did in 2008. All good, right?

Well, mostly. But helping to boost the overall giving figure were close to 11,000 more foundations — some of them quite large — than we tracked in 2008, as well as approximately $2.8 billion more in product giving by about a dozen operating and corporate foundations created by pharmaceutical manufacturers to distribute medications. What's more, 35 percent of the independent and family foundations that responded to our recent "Foundation Giving Forecast Survey" indicated that they reduced their giving in 2013. In similar years past, a typical figure was 25 percent or less.

FC_KFUSFDNs_page2

 

With a gravity-defying stock market, why hasn't foundation giving recovered faster? In part, because foundation giving didn't tank after the 2008 economic meltdown. The 17 percent drop in foundation assets in 2008 was followed by a roughly 2 percent decline in giving the following year. Looking to provide a secure source of support for struggling grantees, a number of foundations held their giving steady or reduced their giving by far less than the decline in their assets. As the assets of these foundations have  recovered, their payout rates have also returned to more typical levels. The takeaway: foundations are an important source of stability during challenging and volatile economic times.

And the picture for 2014 looks even brighter. Foundation Center projects that independent and family foundations, which account for roughly nine out of 10 U.S. foundations, will increase their giving by 7 percent this year. And while we're forecasting a smaller increase for corporate and community foundations, overall giving in 2014 undoubtedly will outpace inflation.

Have foundations recovered from the Great Recession? As of today, we're willing to say "pretty much." And we're confident they'll be there for grantees when the next one comes.

Steven Lawrence is director of research at Foundation Center and author of the annual Key Facts on U.S. Foundations report. Looking for more data? Check out Foundation Stats, the most comprehensive resource available for generating tables and charts on the size, scope, and giving priorities of the U.S. foundation community.

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Contributors

Quote of the Week

  • "One of the great attractions of patriotism — it fulfills our worst wishes. In the person of our nation we are able, vicariously, to bully and cheat. Bully and cheat, what's more, with a feeling that we are profoundly virtuous...."

    — Aldous Huxley (1894-1963)

Subscribe to Philantopic

Contributors

Guest Contributors

  • Laura Cronin
  • Derrick Feldmann
  • Thaler Pekar
  • Kathryn Pyle
  • Nick Scott
  • Allison Shirk

Tweets from @PNDBLOG

Follow us »

Archives

Other Blogs

Tags