A recently released report conducted by Foundation Source summarizes giving and investment trends for nearly a thousand private foundations. Key highlights of the report include:
Giving Trends:
- Private foundation endowments experienced double-digit growth in both 2020 and 2021.
- Strong returns in 2020 presented an opportunity for private foundations to increase their giving in 2021. Larger foundations ($50-500 million in assets) increased their giving by nearly 21% from years 2020-2021.
- In 2021, foundations collectively distributed an average of 7.2% of their assets for charitable purposes, generously exceeding the minimum distribution requirement of 5%.
- Smaller foundations ($1-10 million in assets) gave nearly twice the minimum distribution requirement of 5% in 2021.
- The Education Sector was the largest recipient (21%) of foundation funding in 2021.
Investment Trends:
- Larger foundations have nearly 5-times the exposure to alternative investments than smaller foundations, and the lowest allocation to equities at 47.1% in 2021.
- Foundations of all sizes experienced double-digit annual growth in both 2020 and 2021, gross-of-fees, with larger foundations leading at 16.5% over this two-year time period.
Foundations gave more abundantly in 2021 as they looked to contribute to pandemic recovery efforts. Even through times of economic distress, private foundations have continued to increase their charitable giving as they pursue their respective missions.
Details to Note:
- Endowment Wealth Management maintains a strategic relationship with Foundation Source. View our press release from 2020 Here.
- Foundation Source has been releasing its annual report on foundations since 2008.
View the Full Report Here.
