Study reveals importance of foundation investments
December 31, 2012
A recently released report from The Philanthropic Collaborative shows that foundation investments have a much wider reach
than the support they provide to specific causes. Titled Economic Impacts of 2010 Foundation Grantmaking on the Economy, the study found that support from these organizations creates jobs and stimulates the economy.
"Foundation investments set off a cascade of benefits in our communities over the course of decades," said Steven Peterson, report author and clinical assistant professor of economics at the University of Idaho. "We now have a stronger understanding of the link between the short- and long-term impact of foundation grants and their significant contribution to economic growth."
For instance, there are approximately 1 million jobs created over the span of a year after grants trickle throughout the economy, the report explains. It took data from 2010, when foundation grants in the United States reached $37.85 billion. The impact of these funds ultimately grows to 8.8 million jobs and contributes $570 billion to America's gross domestic profit when taking economic multipliers and long-term return on investment into account.
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