Laws Force Foundations To Ever More Generous Handouts
March 29, 2000
The soaring value of equity holdings plus tax laws which require foundations to distribute 5 percent of their assets each year are prompting American charities to give away record amounts in grants. Giving by every type of foundation has increased, according to the Foundation Center.
- In 1999, according to the latest report from the center, giving hit approximately $22.8 billion -- compared to $8.7 billion a decade ago and $19.5 billion in 1998.
- Individual grants of $5 million or more climbed to 147 in 1998 -- from under 50 for much of the early 1990s.
- Foundation endowments reached $385 billion at the end of 1998.
The number of foundations has more than doubled since 1980, to more than 47,000 and newly active foundations were responsible for one-fifth of the rise in foundation giving from 1997 to 1998.
Corporate foundations increased the amounts they made in grants by a record 22 percent last year -- to an estimated $3 billion.
Source: Reed Abelson, "Foundation Giving Is at $23 Billion High," New York Times, March 29, 2000.
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