The amount of money given to non-profits by small private foundations declined slightly in 2018, while foundation assets declined more sharply, according to Foundation Source in its 2019 Annual Report on Private Foundations that it released Monday.
The report includes information from 987 of the firm’s private foundation clients with $50 million or less in assets. In 2018 these foundations made grants totaling $298.7 million, down from the $299.3 million in 2017.
The asset balances of the foundations decreased 3.5 percent, in contrast to the 13.2 percent growth that was seen in 2017.
“Most of this drop in value occurred in the fourth quarter of 2018, when, after three strong quarters, the S&P 500 stock index fell" and ended the year down 7 percent, the report said.
The foundations exceeded the mandatory 5 percent distribution requirement by, on average, distributing 7.3 percent of assets. The smallest foundations in the sample, those with assets of less than $1 million, distributed 14.2 percent of total assets.
The grants given as donations to nonprofits were taken from returns earned on assets, as well as from new donations made to the foundations by the owners. For every 76 cents given away, the foundations recorded 73 cents in new donations, the report said.
“The generosity demonstrated by these foundations is impressive,” said Page Snow, Foundation Source chief philanthropic officer. “Whether the year was attended by strong economic growth or not, they maintained consistent levels of giving, demonstrating their donors’ unshakable commitment to philanthropy.”
The stock market lost some of its 2017 momentum, prompting foundations to very slightly decrease their allocations to equities and increase their fixed-income holdings, the report said.
The foundations moved a small amount of assets, increasing allocations to fixed income from 16.3 percent of assets in 2017 to 17.6 percent last year, and decreasing allocations to equities from 51.6 percent to 50.3 percent.
The causes foundations found grant-worthy remained relatively stable, with education and human services still receiving the most grants. However, contributions to education, health, and international and foreign affairs each declined slightly, while contribution were up slightly in the areas of human services, projects with public and societal benefits, arts, culture and humanities, environment, animal welfare and religion were each up slightly.
Foundation Source, a Fairfield, Conn.-based support organization for private foundations, included information from 987 foundations with $50 million or less in assets in the report.