Large Nonoperating Private Foundations Panel Study, 1985-1997 - Brief Article - Statistical Data Included

Statistics of Income Bulletin, Summer, 2001 by Melissa Whitten

This article presents statistics derived from a recently constructed panel of data collected for the annual study of private foundations. Private foundations resemble public charities in that they are tax-exempt under Internal Revenue Code 501(c)(3), but are generally more narrowly controlled and supported, usually by an individual, family, or corporation.

Data included in the panel were assembled for 100 large domestic nonoperating foundations appearing in the SOI samples for Reporting Years 1985-1997. These organizations generally report approximately one-third of both the charitable contributions paid and the fair market value of assets held by foundations. Between 1985 and 1997, asset holdings for the foundations included in the panel more than tripled, rising from $37.6 billion to $120.6 billion. Charitable contributions, gifts, and grants also tripled, rising from $1.5 billion for 1985 to $4.5 billion for 1997. The contributions were the largest outlays reported by the organizations between 1985 and 1997, accounting for approximately 90 percent of all charitable expenditures in those years. Net investment income yields and rates of total return on assets fluctuated throughout the period, while median payout rates, which compare charitable outlays to net investment assets, remained close to the required 5 percent.