Posted on April 5, 2006

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2005 Foundation Giving Grew at Moderate Pace, Study Finds

Giving by the nation's 68,000 grantmaking foundations grew to $33.6 billion in 2005, a new report from the New York City-based Foundation Center finds.

According to Foundation Growth and Giving Estimates: Current Outlook, the estimated 5.5 percent increase was consistent with the 5.1 percent gain recorded in 2004, with continued stock market growth, higher levels of new gifts into corporate and community foundations, and the giving of newly established foundations the primary factors in the recent growth. Exceptional grantmaking in response to the South Asian tsunami and Gulf Coast hurricanes also helped to raise the overall level of giving.

A Foundation Center survey of 850 grantmaking foundations, conducted in January, also revealed that roughly 32 percent of foundations increased the number of grants they made in 2005 — nearly unchanged from 2004. Similarly, the 28 percent share of respondents that increased the number of nonprofit organizations they supported was consistent with the prior year.

Looking ahead, the lingering impact of the economic downturn in the early 2000s, continued variability in market performance, and a lack of strong and consistent growth in assets will limit increases in foundation giving in 2006. Overall, the assets of U.S. foundations increased by an estimated 2 to 4 percent in 2005, down substantially from a 7.1 percent gain in 2004 and the nearly 10 percent rise in 2003. Just over half of survey respondents expected to increase their giving in 2006. However, the share that expected to reduce giving climbed to 32 percent, up from 25 percent last year and 18 percent in 2004.

"Most foundations have not experienced a robust recovery in their assets," said Foundation Center president Sara Engelhardt, "and the outlook for 2006 is uncertain at best. Some funders — notably community foundations — may show bigger increases, but overall giving will likely hold steady. In the case of community foundations, continued strong growth in their pool of donors and in exceptionally large gifts from their donor-advised funds will help them to maintain faster rates of growth in giving."

To read or download highlights of the report (18 pages, PDF) visit: http://www.foundationcenter.org/gainknowledge/
research/pdf/fgge06.pdf

“Foundation Giving Grew at Steady, Moderate Pace in 2005.” Foundation Center Press Release 4/04/06.

Primary Subject: Philanthropy and Voluntarism
Location(s): National, United States

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