Giving by U.S. foundations could see an uptick this year based on estimates in the latest quarterly report by FoundationMark. The company, which tracks grant makers’ investments, estimates giving in 2023 could reach $90 billion. That’s slightly higher than the 2022 preliminary giving level, based on the tax filings available so far.
FoundationMark estimates foundations in general have underperformed by 1.4 percent per year over the past five years compared with market averages.
Foundation assets declined in the first nine months of 2022, dropping by more than $250 billion, before rebounding in the most recent three quarters. The rebound in assets could enable an increase in giving, assuming stock markets stay roughly at current levels or increase.
FoundationMark estimates that during the first half of 2023 grant makers’ assets increased almost 8 percent as global stock markets recovered from a tough 2022.
Foundations typically based their giving on the average totals of their assets over the previous three years. The $90 billion estimate for 2023 assumes they will give roughly what they gave in recent years, which was about 7 percent of average assets.
However, the picture isn’t entirely rosy. Even though assets grew in the last three quarters, they are still down 9 percent from their peak in December 2021. That’s when they hit close to $1.4 trillion. The total assets for the most recent quarters are estimated to be $1.3 trillion.
FoundationMark develops estimates of current assets and giving levels by examining foundation tax filings and other information about how they invest to develop the projections shown here.
Reporting for this article was underwritten by a Lilly Endowment grant to enhance public understanding of philanthropy. The Chronicle is solely responsible for the content. See more about the Chronicle, the grant, how our foundation-supported journalism works, and our gift-acceptance policy.
