Take Survey
MEDIA, JOBS & RESOURCES for the COMMON GOOD
NEWS  |  General, Research

Researchers Track US Foundation Distributions


Thursday, 1st November 2012 at 9:41 am
Staff Reporter
US philanthropic research organisation, The Foundation Center, has released new research that examines the payout practices and spending patterns of more than 1,000 larger U.S. independent foundations.

Thursday, 1st November 2012
at 9:41 am
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Researchers Track US Foundation Distributions
Thursday, 1st November 2012 at 9:41 am

US philanthropic research organisation, The Foundation Center, has released new research that examines the payout practices and spending patterns of more than 1,000 larger U.S. independent foundations.

Understanding and Benchmarking Foundation Payout explains the concept of payout, which refers to the total amount that a foundation reports as its charitable distribution. (The law requires the vast majority of private U.S. grantmaking foundations to distribute at least 5 percent of their net investment assets for charitable purposes each year.)

The report is described as the first of its kind to track payout practices of the largest U.S. foundations. It finds that during the period 2007-2009, the largest share of endowed foundations (46 percent) reported payout rates in the range of 5 to 5.9 percent, on average.

Nearly one-in-five foundations had payout rates at or above 10%.

"While the very top grantmakers tend to pay out close to the 5% minimum, there is surprising variation in payout levels of larger foundations overall, and annual rates are affected by drastic changes in the stock market," Loren Renz, the author of the report and vice president emeritus for research at the Foundation Center said.

"Only by averaging these rates across multiple years can a balanced view of payout practices be realised."

The amount a foundation spends on staff, overhead, and other program-related administrative expenses is included in the calculation of its qualifying distributions each year. Benchmarking Foundation Administrative Expenses: Update on How Operating Characteristics Affect Spending considers how differences in foundations’ infrastructure, operations, and programmatic activities influence their spending patterns.

The report finds that whether a foundation employs paid staff is the single most important factor affecting its expense levels, followed by staff size. In addition, foundations that regularly engage in international grantmaking, foundation-administered programs, or making grants directly to individuals have expenses-to-qualifying distribution ratios that are roughly twice as high as those that do not.

Understanding and Benchmarking Foundation Payout and Benchmarking Foundation Administrative Expenses can be downloaded at no charge from the Gain Knowledge area of the Foundation Center's web site.

The research was made possible through support from the Charles Stewart Mott Foundation.
 




Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Write a Reply or Comment

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

Philanthropy’s Role in Tackling Climate Change

Luke Michael

Monday, 15th October 2018 at 5:01 pm

Google Reveals Finalists For $5.5 Million Grants Program

Luke Michael

Tuesday, 9th October 2018 at 4:46 pm

$50 million Up For Grabs to Help NFPs Drive Change

Maggie Coggan

Monday, 17th September 2018 at 4:21 pm

New Brooms: How Younger Givers Are Changing Family Philanthropy

Fiona Higgins

Wednesday, 12th September 2018 at 11:11 am

POPULAR

Report Uncovers Shocking Abuse and Neglect of Adults With Disability

Luke Michael

Monday, 5th November 2018 at 5:29 pm

Google Awards Millions to Groups Harnessing Technology For Change

Maggie Coggan

Friday, 2nd November 2018 at 5:50 pm

White Ribbon CEO Puts Hasty Departure Down to Culture Clash

Maggie Coggan

Monday, 12th November 2018 at 5:49 pm

Government Backtracks on Cuts to Food Relief Charity

Maggie Coggan

Monday, 12th November 2018 at 5:42 pm

Take Survey
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!