"The New York metropolitan area is home to the largest concentration of foundations in the United States," noted Loren Renz, vice president for research at the Foundation Center. "This report examines the size and complexity of the area's foundation community, documents its remarkable growth during the boom years of the late 1990s, and considers its prospects in the current economic environment."
"With New York area foundations providing over 17 percent of the giving by all U.S. foundations, the need for more detailed, focused information on the New York region's philanthropy is great," Barbara Bryan, president of NYRAG, stated. "NYRAG members and other funders want to know what's happening locally to inform their own decision making, and this report will help them. I hope it will also increase philanthropy in the region by bringing attention to the recent growth and vitality of foundations here."
Research on New York Metropolitan Area Foundations
"Highlights" of New York Metropolitan Area Foundations can be accessed at no charge from the "Researching Philanthropy" area of the Foundation Center's Web site, www.foundationcenter.org/research. The full report can be purchased at the Foundation Center's online Marketplace, www.foundationcenter.org/marketplace.
Key Findings from the New York Metropolitan Area Foundations Report
New York metropolitan area foundations surpassed the growth in actual foundation number, giving, and assets reported by most states during the boom years of the late 1990s. As a result, New York metropolitan area grantmakers continued to account for a larger share of U.S. foundation resources than any state in the country. A principal factor propelling this growth was the economic and stock market boom, which especially benefited the area's large financial services sector. The boom boosted the value of foundations' investments, encouraged donors to make new gifts into their foundations, and stimulated the establishment of large numbers of new foundations. In addition, the New York area benefited from the establishment of the "billion-dollar" Doris Duke Charitable Foundation through a bequest from tobacco heiress Doris Duke.
New York metropolitan area foundations were far more likely than U.S. foundations overall to give nationally or internationally. Although the vast majority of New York area foundations limited their giving to the local community, roughly 12 percent were classified as national or international in scopeclose to double the share found among the nation's foundations overall. The greater concentration of larger and older foundationsfactors that tend to correlate with national and international fundingprovide part of the explanation for New York area foundations being on average more likely to give on a national or international basis. The New York metropolitan area is also a leading center of international commerce and home to the United Nations' headquarters and several of the nation's earliest international funders, such as the Rockefeller Foundation and the Carnegie Corporation of New York.
Giving patterns of New York metropolitan area foundations demonstrated their unique profile among U.S. foundations. For example, education ranked as the top funding priority for both New York area and all U.S. foundations. Yet, New York metropolitan area foundations directed their second largest share of giving to the arts, while all U.S. foundations targeted their second largest share of support for health. Overall, funders in the metropolitan area awarded larger shares of support than all U.S. foundations for the arts, public/society benefit, international affairs, and the social sciences. In contrast, they provided notably smaller shares for education, health, human services, and religion. These patterns largely held true regardless of New York area foundation size.
Although prospects for near-term growth appear modest at best, New York metropolitan area foundations will continue to account for the dominant share of the country's foundation resources. Continuing stock market losses, a shaky economic recovery, and the aftermath of the September 11, 2001, terrorist attacks are all factors limiting growth in the resources of area foundations. Nonetheless, the number of New York area foundations has grown by one-third since the early 1990sincluding an estimated 1,300-plus larger foundations. These thousands of new grantmaking organizations will be receiving their full endowments over the next 10 to 15 years, which will help New York area foundations maintain their overall share of U.S. foundation resources.
ABOUT THE FOUNDATION CENTER
The Foundation Center's mission is to support and improve philanthropy by promoting public understanding of the field and helping grantseekers succeed. To achieve its mission, it: collects, organizes, and communicates information on U.S. philanthropy; conducts and facilitates research on trends in the field; provides education and training on the grantseeking process; and ensures public access to information and services through its World Wide Web site, print and electronic publications, five library/learning centers, and a national network of Cooperating Collections. Founded in 1956, the Center is the nation's leading authority on philanthropy and is dedicated to serving grantseekers, grantmakers, researchers, policymakers, the media, and the general public.
ABOUT THE NEW YORK REGIONAL ASSOCIATION OF GRANTMAKERS
The New York Regional Association of Grantmakers (NYRAG), a nonprofit membership organization of more than 270 grantmaking foundations and corporations in the New York metropolitan area, promotes and supports the practice of effective philanthropy for the public good and is a leading provider of philanthropic knowledge in the region. Its members work to strengthen communities and improve the quality of life for people in the tri-state metropolitan region and around the world. They include independent, family, corporate, community, public, and operating foundations; corporate contributions programs; federated funds and religious entities with grantmaking programs; and individual donors with organized giving programs.
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