How much have foundations grown and why is that important?Following a period of decline in the rate of foundation establishment during the 1970s, the 1980s witnessed a dramatic rebound in foundation creation. Three factors contributed to this growth: the loosening of some of the more severe requirements of the 1969 Tax Act; a tremendous increase in personal wealth; and a more favorable attitude toward foundations among donors. This growth continued throughout the 1990s, but has slowed since the start of the new millennium due to the end of the stock market bubble, a recession, and an uneven economic recovery.
- Close to half of larger foundations were formed after 1989.
- Between 1990 and 2005, the number of active grantmaking foundations more than doubled from approximately 32,000 to over 71,000.
- In this same time period, assets of active grantmaking foundations jumped from $142.5 billion to $550.6 billion.
- Following the rise of assets, giving more than quadrupled from $8.7 billion in 1990 to $36.4 billion in 2005.
- According to the Foundation Center's estimates for 2006, giving rose to $40.7 billion, up 11.7 percent from 2005.
- Adjusting for inflation, giving nealy tripled between 1990 and 2005.
The importance of foundation growth lies in its promise for the future. The larger the foundation world, the greater the resources that will be available to the nonprofit sector. While not all nonprofits will benefit equally from these resources, more foundation support will reach communities in the United States and overseas than ever before.
View chart on the Change in Foundation Giving, 1996 to 2006 (PDF).
| Growth
of Foundations, 1990 to 2005* |
|
| |
1990 |
2005 |
Change |
| No.
of Foundations |
32,401 |
71,095 |
119% |
| Total
Assets (in billions) |
$142.5 |
$550.6 |
286% |
| Total
Giving (in billions) |
$8.7 |
$36.4 |
318% |
Source:
The Foundation Center, 2007.
*Percent change in assets and giving represents current dollars. |
|
|
