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Beyond Five Percent: The New Foundation Payout Menu
Most U.S. foundations are set up to exist in perpetuity. Each year, they pay out in grants and administrative costs the minimum required by U.S. law - five percent of their assets. However, some donors and foundations, driven by their missions, have moved beyond this "default" position.
FACT recently worked with Northern California Grantmakers and the New York Regional Association of Grantmakers (now Philanthropy New York) to produce a report about some of these foundations. They include organizations that are spending down, through a variety of methods, as well as some that have adopted policies of higher or flexible payout without necessarily intending to spend down. A few of these foundations have completed their work; most are still active. Click here to download the report in pdf format.
This report is intended to serve as a resource and an inspiration for experimentation with different kinds of payout. All donors from new funders to seasoned donors, as well as advisors to philanthropists, will find useful information from the examples related in the case studies.
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