Posted on March 31, 2009

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Foundation Giving Grew Modestly in 2008, Likely to Decline in 2009, Report Finds

In the midst of a deepening recession, U.S. foundation giving grew a modest 2.8 percent, to an estimated $45.6 billion, in 2008, but is expected to decrease in 2009, a new report from the Foundation Center finds.

Based on a recent survey of more than 1,200 large and midsize foundations, the 2009 edition of Foundation Growth and Giving Estimates: Current Outlook (19 pages, PDF) found that foundation giving did not grow as much in 2008 as had been expected due to the prolonged and serious nature of the economic downturn. According to last year's survey, which was conducted before the economic crisis really took hold, 29 percent of foundations said they expected to reduce their giving in 2008. This year's survey, in contrast, found that 47 percent of top U.S. foundations had actually reduced their giving last year.

According to the report, independent and family foundations increased their giving in 2008 by 2.5 percent, to an estimated $33 billion; corporate foundation giving held steady at $4.4 billion; and community foundation giving rose 6.7 percent, to $4.6 billion, surpassing corporate foundations for the first time.

The majority of survey respondents (67 percent) said they expect to reduce their giving to some extent in 2009, with community foundations most likely to say they anticipate a decrease. Based on several factors, the report predicted that 2009 foundation giving will fall in the range of the high single to low double digits and could decline further in 2010.

"Foundations remain one of the few sources of stability for nonprofit organizations in this very volatile economic climate," said Foundation Center president Bradford K. Smith. "However, the longer this crisis persists, the more foundations will have to reduce giving."

“Foundation Giving Grew Modestly in 2008 but Declines Expected in 2009, According to New Foundation Center Report.” Foundation Center Press Release 3/31/09.

Primary Subject: Philanthropy and Voluntarism
Secondary Subject(s): Economic Crisis
Location(s): National

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