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Note: This report—including all tables, charts, and graphs—is available in its entirety in the Portable Document Format (PDF).
Introduction
This interim report provides a summary of the findings to date from the Foundation Expenses and Compensation Study, a partnership of the Urban Institute, the Foundation Center, and GuideStar. The study considers the expense and compensation patterns of the 10,000 largest independent, corporate, and community foundations (ranked by giving) in 2001.
This interim report focuses on: (1) charitable expenses as a percentage of qualifying distributions (those that count toward the required payout) for independent foundations and (2) compensation levels across all foundation types, including aggregate compensation as a percentage of giving and levels of individual trustee, institutional trustee, and executive compensation. A key purpose of the research is to identify foundation characteristics and operating styles that affect levels of expenses and compensation, including foundation type, size, staffing, scope of giving, and direct charitable activities.1
Data are primarily drawn from Forms 990-PF and 990, which are filed annually with the Internal Revenue Service. These data are supplemented by annual surveys conducted by the Foundation Center.
The largest 10,000 U.S. grantmaking foundations represent 16 percent of the total 61,810 independent, corporate, and community foundations identified by the Foundation Center in 2001. These foundations account for 78 percent of all foundation giving and 77 percent of all foundation assets. As indicated in figure 1, a large majority of the largest foundations are independent, a category that includes family foundations.2
| Figure 1. Aggregate Finances of the 10,000 Largest Foundations (2001) by Foundation Type |
| |
| |
Independent |
Corporate |
Community |
Totals |
| Number |
8,876 |
807 |
317 |
10,000 |
| Assets (MV) |
$333.7 B |
$13.2 B |
$25.2 B |
$372.1 B |
| Total Giving3 |
$19.2 B |
$2.9 B |
$1.9 B |
$24.0 B |
| Charitable Operating and Administrative Expenses4 |
$1.5 B |
$201 M |
$169 M |
$1.9 B |
| Qualifying Distributions5 |
$21.2 B |
$3.1 B |
$2.1 B |
$26.4 B |
Notes from this section of the report
1. The final report, to be released later this year, will document the impact of such additional factors as staff size and number of grants awarded, as well as examine expense ratios of corporate and community foundations.
2. Since this study focuses on grantmaking foundations, operating foundations are not included. While they may do some grantmaking, operating foundations use the bulk of their resources to provide charitable services or to run charitable programs rather than distribute grants.
3. Total Giving: Part I, Line 25, Column D, Form 990-PF. For Community Foundations, Part II, Lines 22 & 23, Column B.
4. Charitable Operating and Administrative Expenses: Part I, Line 24, Column D, Form 990-PF. For Community Foundations, Part II, Lines 24-43, Column B.
5. Qualifying Distributions: Part XII, Line 4, Form 990-PF. For Community Foundations, we use total program expenditures (Part II, Line 44, Column B) as a proxy for qualifying distributions.
Note: This report—including all tables, charts, and graphs—is available in its entirety in the Portable Document Format (PDF).
The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.
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