As Foundation Source processed grants last year and analyzed data collected from Form 990PF filings of nearly 500 of its small and mid-size private foundation clients, it tracked the pay outs and compiled what it found. Its just-released study concludes that, in 2009, 83 percent of these small to mid-sized foundations paid out more than they were required to by the IRS. (The IRS requires that private foundations distribute at least 5 percent of average investment assets annually for charitable purposes.)
In fact, the study says that 58 percent exceeded the minimum distribution requirement by at least 5 percent of their average investment assets.
The larger payouts are continuing into 2010, the Foundation Source also notes, reporting in May that it was seeing a 15 percent increase in grantmaking among its clients.
“Ninety-nine percent of all family foundations are under $100 million,” says Foundation Source President Andrew Bangser. “These generous foundations represent more than half of all foundation giving in the US, nearly $16 billion in 2007. … The data shows that most family foundations have not limited their giving to the minimum amount required by the IRS. And small and midsize family foundations stepped up dramatically in this tough economy to assist a wide variety of people, organizations and causes.”
Foundation Source provides support services for more than 900 private foundations across the U.S. representing $4 billion in foundation assets.
To learn more about the study, view it online on the Foundation Source’s website, or read about it in the Chronicle of Philanthropy.
-Chris Murakami Noonan, MCF communications associate
[...] This post was mentioned on Twitter by OnlyFoundations. OnlyFoundations said: MN Council Blog: Small Foundations Pay Out Big, Study Finds: As Foundation Source processed grants last year and a… http://bit.ly/aDovOz [...]