A new research advisory from Foundation Center shows foundation giving is expected to decrease in 2009, in a range of high single digits to low double digits; nearly two-thirds of respondents predict reductions in the number and/or size of their grants in 2009. Still, about 80% of respondents expect to maintain their current program areas, while a small handful (3%) anticipate increasing the number of areas they support.
Only 14% of all respondents report launching special initiatives in direct response to the current economic climate. However, community foundations are particularly focused on responding to the downturn; 35% say they are engaging in special initiatives to help communities cope with the fallout from a deteriorating economy.
As funders’ resources have diminished, many plan to participate in non-grantmaking activities. Two-thirds of funders expect to engage in more collaborations and partnerships, while one-third anticipate initiating more convenings. Other non-grantmaking responses include providing for more technical assistance, offering more bridge/emergency financing, and engaging in more advocacy.
While most funders plan to use investment income to meet their grantmaking budgets (88%), about 39% expect to use their endowment principal to make grants. This is particularly notable given the asset declines most funders experienced in 2008 and continue to experience in 2009.
The Foundation Center surveyed 5,000 large and mid-size foundations in January 2009 about their outlook for giving in 2009 and 2010, and about how they plan to respond to the economic downturn. Approximately 1,200 foundations responded.
Post provided by the Minnesota Council of Foundations.
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