Community foundations boosted giving last year

Close to two-thirds of foundations increased their giving in fiscal year 2020 compared with the year before, according to a survey conducted by Candid of about 600 funders.

Community foundations were more likely to report that they contributed more last year – with their giving increasing by 53% – compared with independent foundations, which increased their support by 14%. That increase among community foundations is likely attributable to funding initiatives related to COVID-19 and other distributions made through donor-advised funds housed at the foundations.

Larger foundations also were more likely to give more, as nearly 90% of foundations awarding $50 million or more reported they boosted their giving last year. 

About one-third of respondents said they planned to increase giving for fiscal year 2021, while about half anticipated keeping their charitable contributions at the same level. Many foundations that are planning to increase giving cited strong market returns.

But that overall increase did not necessarily result in increased payouts at private foundations. Private foundations are required to make charitable payments that amount to at least 5% of the value of their endowments. While giving increased overall, more than half of the private foundations surveyed reported that their payout remained the same or decreased.