Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Sunday, October 1, 2023

A Rise in Private Foundation Giving Could Stall Because of Volatile Markets

Estate planningIn 2021, private foundations saw a boost in their giving due to a strong stock market performance, as per an annual survey by Foundation Source. Giving among the 980 surveyed foundations increased by 14.7%, with the number of grants rising by 7.1%. 

These gifts accounted for 6.6% of the total assets for these foundations, exceeding the required 5% payout mandated by federal tax law. However, foundations also reported a 14.5% decrease in net assets and a year-over-year drop in net asset value of 31.5%, which could impact their giving in the future.

The endowments of the 980 surveyed foundations decreased in value, dropping from $15.4 billion to $13.2 billion last year. This decline was primarily attributed to lower contribution rates and investments that didn't perform well. In response to the market conditions, these foundations shifted some of their assets away from stocks and towards alternative investments like private equity and real estate. 

For more information see Abby Schultz “A Rise in Private Foundation Giving Could Stall Because of Volatile Markets” Barrons PENTA, September 29, 2023.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.


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