The foundations saw an average asset growth of 3.7 percent compared with 2013, when foundation assets grew 20.7 percent on average. Although foundations with assets of $10 million to $50 million saw growth of 4.6 percent in assets in 2014, the smallest foundations, those under $1 million, experienced a 2 percent decline. Various factors, including market returns, contributed to the drop, such as the amount of contributions made to the foundations during the year, says Page Snow, chief philanthropic officer of Foundation Source. The unusually good market in 2013 also helped asset levels that year, she says.
Despite the modest growth in assets, foundations gave more in 2014 than in the previous year. However, foundations with assets between $10 million and $50 million in assets increased their grant making the most, rising 28 percent over 2013, the survey says.
“As policies are currently being proposed that would mandate distribution levels for other charitable vehicles, such as donor-advised funds, there’s been speculation about the possible impact of such requirements. We believe that private foundations may prove useful bellwethers in that the minimum distribution rate seems to be perceived by foundation donors as a floor, rather than a ceiling. The results of our report are therefore potentially instructive for policy makers considering the imposition of distribution requirements for other charitable vehicles,” says Snow.