Foundation Center releases report on payouts and spending in US
October 24, 2012
The Foundation Center recently released a report detailing information from the largest foundations in the United States, revealing the ways in which some handle payouts and approach spending. Many contributors and donors are interested in learning how every dollar they give will be spent, and what percentage will be allocated to the causes they aim to support and which will be used to cover payroll expenses and future fundraising campaigns.
Overall, the report found that the biggest factor in expenses and disbursements was payroll. It revealed that of the 214 foundations with a giving range less than $3 million between 2007 and 2009, 112 are staffed. This percentage appears to increase with giving, as 221 of the 369 foundations that granted between $3 and $5 million are staffed and all 50 organizations that gave more than $50 million.
"While the very top grantmakers tend to pay out close to the 5 percent minimum, there is surprising variation in payout levels of larger foundations overall, and annual rates are affected by drastic changes in the stock market," said Loren Renz, the author of the report and vice president emeritus for research at the Foundation Center.
Foundations and organizations that provide annual funding might benefit from nonprofit accounting
software, which can help board members audit funds and make sure the correct amounts are being distributed to various programs each year.