current
Growing Foundation Assets
Foundation assets have significantly increased, likely due to strong market performance and wealth transfer, but payout rates remain relatively stagnant.
Timeframe
near-term
Categories
Detailed Analysis
The report identifies a substantial increase in foundation asset sizes over the past decade, with the "number of respondents with $10 million or more in assets [rising] from 30% to 47%" This growth is likely attributed to strong market performance and the ongoing intergenerational wealth transfer. However, this increase in assets has not been matched by a proportional increase in payout rates, indicating a significant amount of inactive capital. This raises concerns about the potential for greater impact if more of these resources were actively deployed to address social challenges.
Context Signals
Discussions around increasing payout rates and the 5% minimum requirement
Growing interest in impact investing as a way to deploy more capital for social good
Potential for regulatory changes or public pressure to encourage higher payout rates
Edge
New philanthropic models may emerge that prioritize rapid capital deployment.
Foundations may face increasing pressure to justify their asset levels and demonstrate greater impact.
This trend could lead to a renewed focus on the effectiveness and efficiency of philanthropic spending.
