Nonprofit Literature Blog

Funding for Education

June is Funding for Education Month at the Foundation Center. We have developed a topical resource list to highlight a number of readings in the area of education philanthropy. Here are a few examples from the list:

2008 Index of Higher Education Fundraising Performance: Summary of Annual Fund Key Performance Indicators. Cambridge, MA: Target Analysis Group, 2009. 12 p. Subject File Number: 703.
Analyses are based on fiscal year 2008 donor transactions from 33 public and 32 private universities and colleges. Available online

Benchmarking 2008: Trends in Education Philanthropy. Portland, OR: Grantmakers for Education. 2008. 20 p.
Analyzes a survey of 152 funders to assess the current state of educational grantmaking, and examine the ways in which funders' priorities have been shifting in recent years. Includes numerous statistical charts and tables. Available online

Cohen, Rick. Strategic Grantmaking: Foundations and the School Privatization Movement. Washington, DC: National Committee for Responsive Philanthropy, 2007. vi, 34 p. Subject File Number: 211.
Cohen shows how philanthropic capital from small and large foundations has helped build political support for the school privatization agenda using movement-building grantmaking strategies. Available online

For additional tools on this topic, the Foundation Center has also created a new Focus on Funding for Education area of the Center’s web site, which serves as a “one-stop shop” for information on events, classes, interactive charts, news, and more. Visit the new site.

New Foundation Center Reports

Take a look at the latest giving statistics released by The Foundation Center this month:

Key Facts on Corporate Foundations
While giving by corporate foundations remained at an estimated $4.4 billion in 2008, the figure represented a 3 percent decline after adjusting for inflation. About half of the survey respondents expected decreases in giving in 2009. Download

Key Facts on Community Foundations
Community foundations increased their giving to a record $4.6 billion in 2008, which translates to a 2.7 percent increase after adjusting for inflation. Nearly 75 percent of the community foundations in the survey indicated that their giving will decline this year. Download

These reports also present trends in giving from 1990 through 2008 and include analyses of giving by subject focus, type of support, and region.

New Report on Foundation Lifespan and Perpetuity

The Foundation Center, in collaboration with the Council on Foundations and with assistance from the Association of Small Foundations, launched a study of family foundations in 2008, collecting survey responses from 1,074 family foundations.

The report, Perpetuity or Limited Lifespan: How do Family Foundations Decide?, presents findings from the study, and examines the impact of foundation characteristics (size, age, staffing, and location) on lifespan planning.

In addition to core findings, the report’s sidebars address related topics:

“What impact will the current economic crisis have on foundation lifespan planning?”

“How do 2004 survey findings on lifespan planning options compare with 2008 survey findings?”

“To what extent do family foundation charters specify perpetuity or limited lifespan?”

Survey respondents also comment on perceived advantages and disadvantages of perpetuity and spending down.

Download the full report and view the survey questions.

Related Resources:

Limited Life Foundations: Motivations, Experiences and Strategies  (Urban Institute)

Beyond Five Percent: The New Foundation Payout Menu (Northern California Grantmakers)

Foundations, Volunteers, and Philanthropists: Three Reports

Let’s take a quick look at research findings that were released during the past week:

1) Yesterday, the Foundation Center issued a new Research Advisory that analyzed how foundations have been responding to the economic crisis. Two-thirds of surveyed foundations anticipate reductions in grants in 2009, and over half of respondents expect to engage in non-grantmaking activities (such as partnerships, convenings, and technical assistance). The findings are based on survey responses from more than 1,200 U.S. foundations. Learn more…

2) As noted in Philanthropy News Digest, findings from the 2009 Deloitte Volunteer IMPACT Survey indicate that nonprofits and corporations should explore pro-bono or skilled volunteerism, especially at a time when cash grants are limited. The executive summary includes next steps for corporations and nonprofits; full survey results are available in a separate file. Learn more…

3) The Center on Philanthropy at Indiana University analyzed individual giving in 2002 and 2006 (representing recent recessionary and growth periods) to estimate contributions for 2009. The data suggests that total giving for households earning between $100,000 to $200,000 will be in the range of $4,500 nationally. Households earning between $200,000 to $500,000 will contribute in the range of $20,000 to $25,000. Regional Differences in Giving, 2002 and 2006 can be found in the new issue of Giving USA Spotlight. Published by the Giving USA Foundation, the issue is available for review at the Foundation Center library/learning centers.

The Role of Private Foundations in Public Policy

If your foundation is interested in achieving its mission through public policy engagement, ask our library staff about the new publication, Foundations and Public Policy: Leveraging Philanthropic Dollars, Knowledge, and Networks for Greater Impact (2009). In addition to chapters that discuss the history and strategies related to foundation involvement in public policy, there are also sections that deal with specific policy arenas:

-Expanding and preserving health insurance coverage
-Protecting wetlands and conserving habitats
-Supporting child care
-Promoting school choice initiatives

Published by the Foundation Center, the book is edited by Dr. James M. Ferris, founding director of The Center on Philanthropy and Public Policy at the University of Southern California (USC).

Read more about Foundations and Public Policy at the USC News web site. The book is available for purchase at the Foundation Center Marketplace.

Time Out: Taking a Look Back at 2008

You’re keeping up with the latest developments in the sector by subscribing to newsletters, listservs, blogs, and RSS feeds. Are you feeling a bit overwhelmed with the continuous stream of updates? Maybe it’s time to take a step back and reflect on the news, people, and giving trends shaping the field with the Foundation Center’s Philanthropy Annual: 2008 Review.

Once again, you will find exclusive interviews and commentary, listings of notable books, and other useful resources. Don’t forget to try the crossword puzzle!

Click here to download or purchase Philanthropy Annual: 2008 Review

Grantmaking in 2009: What Can We Expect?

Nonprofits uncertain about their financial outlook may find planning and budgeting especially challenging during the current economic downturn. Charities will estimate with varying levels of success how much they will be able to raise with their next campaign.

To help ease the level of uncertainty faced by charities, some foundations and corporate funders have issued statements regarding their grantmaking.

"These grantmakers deserve credit for letting their grantees know what to expect over the coming year, so they can prepare,” said Steven Lawrence, senior director of research at the Foundation Center.

You can track statements from grantmakers at the Foundation Center’s Focus on the Economic Crisis web site.

For an analysis of these announcements and plans, read the new research advisory Grantmakers Describe the Impact of the Economic Crisis on Their Giving, co-authored by Steven Lawrence and Lawrence T. McGill, senior vice president for research.

A New Report on Local Philanthropy

The Foundation Center has released a report that analyzes giving in the National Capital Region.  This is the first study to examine the proportion of local foundation giving to locally-focused organizations in the U.S.

The findings indicate that locally-focused organizations in the Washington metropolitan area received 33 percent of the grant dollars awarded in 2006 by Washington area foundations, with human services projects receiving the highest percentage of grant dollars. The report was developed with support from the Eugene and Agnes E. Meyer Foundation. Click here to download the full-report.

Foundation Center Research

The Foundation Center has recently released two reports:

A First Look at the Foundation and Corporate Response to the Economic Crisis (free PDF)
Steven Lawrence, Senior Director of Research, describes the range of support provided by institutional funders, based on preliminary data from nearly 50 grantmakers. While some funders are helping to prevent foreclosures, others are providing emergency assistance. Foundations are also interested in supporting research and education to develop a better understanding of the financial crisis.

Key Facts on Family Foundations (free PDF)
The Foundation Center’s annual update indicates that family foundations provided $18.5 billion in grants in 2007. Larger family foundations in the grants sample favored education programs and prioritized giving for the economically disadvantaged.

Visit the Foundation Center’s web site for more Research Advisories and reports.

International Giving by U.S. Foundations

Learn more about giving for international programs with the new report, International Grantmaking IV: An Update on U.S. Foundation Trends. The report indicates that from 2002 to 2007, international giving rose by more than 50 percent after inflation, versus a 22.3 percent increase in overall giving. International giving by foundations in 2008 is expected to surpass the record of $5.7 billion set last year.

The report was produced by the Foundation Center in cooperation with the Council on Foundations. More information and highlights are available for download at the Foundation Center’s web site.