Nonprofit Literature Blog

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.

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.