Foundations saw positive growth in 2016, picking up $200 million in value compared with 2015, according to Foundation Source. Overall, 2016 portfolio performance was more robust across all foundation sizes.
The largest foundations in Foundation Source's study saw the highest net gain of 6.8 percent, while foundations of $1 million to $10 million had an overall net gain of 5.5 percent. Average assets declined slightly for smaller foundations because they disbursed a greater percentage of their assets in grants and expenses.
Foundation Source examined the investment performance of its clients in 2016 with 2015. Clients holding less than $50 million in assets were included in the data and represent 98 percent of all private foundations in the U.S.
According to IRS data, of the 82,000 plus foundations in existence, 88 percent have assets under $5 million and 66 percent under $1 million. More than half of U.S. foundations were created in the last 12 years, while 54 percent have been around fewer than 10 years.
Data in the report are sourced from the actual transactions of the foundations: grants, investment returns, asset balances, and the charitable administrative expenses that they disbursed.
Learn more at www.foundationsource.com.
