Gates Foundation to Increase Payout, Scale Back Growth in 2009 Grantmaking
Gates Foundation to Increase Payout, Scale Back Growth in 2009 Grantmaking
The Seattle-based Bill & Melinda Gates Foundation has announced that it will scale back planned growth in its grantmaking next year, the Seattle Times reports.
In an open letter posted on the foundation's Web site, CEO Jeff Raikes said the foundation would increase its payout by about 10 percent in 2009, but noted that the increase is less than what it had planned to do before the economy began to slow dramatically. The foundation, which expects to make about $2.8 billion in grants in 2008, previously had projected that it would award $3.2 billion in grants in 2009 and beyond, thanks to the influx of funds from investor Warren Buffett. Typically, the foundation pays out slightly more than 5 percent of its assets each year.
According to the foundation's Web site, the value of its endowment was $35.1 billion on October 1, down from $35.9 billion in June. One of Raikes' first tasks since taking the helm in September has been to address the effects of the economic downturn on the foundation and its work. "The financial crisis is affecting everyone, from our foundation to our partners," said Raikes. "We know that it has hit our grantees, and the people they're trying to help, especially hard. Nonprofit groups rely on steady funding to carry out their work, but with an uncertain economy and a volatile stock market, funders are having an increasingly difficult time meeting their commitments."
The Gates Foundation will encourage others, including governments, businesses, and foundations, to continue funding toward those goals, even in tough times, Raikes said, noting that "when government officials write next year's budgets, it may be tempting to cut back on the very programs our grantees care most about."
Heim, Kristi.
“Gates Foundation Pruning Grant Growth.”
Seattle Times
11/22/08.
Primary Subject: Philanthropy and Voluntarism
Secondary Subject(s): Economic Crisis
Location(s): National, Seattle, Washington
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