Posted on February 19, 2009

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Downturn Spurs Some Foundations to Give More

At a time when many foundations are cutting their grant budgets or scrambling to maintain them at last year's level, a few foundations are stepping up their grantmaking in response to the economic downturn, the Boston Globe reports.

The Bill & Melinda Gates Foundation, the nation's largest foundation, plans to award more than the $2.8 billion in grants it distributed last year — though not as much as it had once expected to. And despite losing 30 percent of what a year ago had been a $50 million endowment, the Boston-based Eos Foundation will spend an additional $15 million over the next five years to fight poverty in Boston, thanks in part to an additional $10 million contribution from Eos founder Ken Nickerson and his wife.

Meanwhile, the Women's Fund of Western Massachusetts recently announced that its grantmaking would more than double to $250,000 in both 2009 and 2010. Although its $2.7 million endowment lost 20 percent of its value last year, an unexpected $300,000 gift will help finance the increased spending.

Associated Grant Makers, a regional association of grantmakers, expects half of its members to reduce their giving and most of the rest to maintain their grantmaking in 2009, which given their diminished endowments means spending more than the 5 percent of their assets required by law. And the Philanthropic Initiative (TPI), a Boston-based consulting firm that advises donors, reports that while three-quarters of its clients plan to maintain their current level of giving, 5 percent have indicated that they plan to increase their giving.

"There's a...wait-and-see attitude before anybody makes any rash decisions to increase or decrease their charitable giving," said TPI vice president James Coutre. "We also see a desire...to step up and give more. Some people are acting on it."

Sege, Irene. “Downturn Spurs Some Foundations to Give More.” Boston Globe 2/16/09.

Primary Subject: Philanthropy and Voluntarism
Secondary Subject(s): Economic Crisis
Location(s): Boston, Massachusetts

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