The Other 95%: How Philanthropic Foundations Can Do Good and Do Well

What is commonly known as “the Rule” within the philanthropic space is a fact that is little-known to the general public–in order to maintain foundation status, organizations have to grant out 5% of their endowments per year.Last year, foundations donated over $88 billion dollars to charitable giving. According to a survey from Foundation Source, the average distribution percentage in 2020 across foundations of all sizes was 7.4% of assets. This was during a year that saw record philanthropic giving due to the urgency of the global Covid-19 pandemic. The largest average distribution size–which was concentrated amongst the smallest foundations–reached 15%.