I had the opportunity to attend the Foundation Center’s webinar, “The Outlook for Foundation Giving in 2008: Insights on Funding in the Current Economic Environment,” this afternoon. Data presented was from their recent report Foundation Growth and Giving Estimates: Current Outlook (PDF). Here are some highlights:
- Growth in grantmaking was anticipated in 2007 across all grantmaker types, with private and community foundations posting the largest gains.
- Continued growth is also predicted in 2008, such that grantmaking will stay ahead of the inflation curve. Most grantmakers determine grant payout based on a rolling average of assets for at least two years, if not more. Since 2006 was a great year for assets and 2007 was okay, an increase in grantmaking in 2008 is expected.
- In general, gifts and bequests have increased to private and community foundations, even taking into account large gifts from Buffet and Gates. Donor advised funds have also gotten very popular, which can increase community foundations’ assets and giving. The intergenerational transfer of wealth has/will affect gifts to foundations as well.
- The number of new foundations in recent years has also grown. It may take a little while for new foundations to establish a presence, so a boom in giving is possible in 15-20 years as these many new foundations mature.
- When looking at the data, one has to take it in context. Grantmaking dropped after 9/11, but this was after incredible increases, from $16B in 1997 to $30.5B in 2001, the highest ever reported. Corporate grantmakers are expected to have a smaller increase in giving in 2007 compared to private and community foundations. However, corporate grantmakers had a huge spike in giving in 2005 with disaster funding.
Anne Graham, Information Services and Database Assistant
Join the conversation: How will the current economic climate affect your grantmaking?
