# Private Foundation Information Returns, 1982 > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3Ab6a95d2bc3e359aa ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text Private Foundation Information Returns, 1982 By Margaret Riley* I Private foundation giving to philanthropic organizations rose by $1.6 billion between 1979 and 1982 El 1. The $4.4 billion in contributions, gifts and grants (hereafter referred to as "grants") awarded by the 23,306 grantmaking private foundations represents an inflationadjusted real increase of nearly 25 percent over grant payouts made in 1979, the last year for which statistics are available [2]. (See Table 1 for data on the various categories of private foundations. ) These grants helped to support charitable programs and research in the areas of health, education, science, the arts, community devel opment, social services and other causes deemed to serve the public good. In 'addition to making a small number of grants, 3,105 "operating" foundations actively conducted charitable programs and provided direct services as a means of carrying out their philanthropic mission. Operating foundations, as a condition of such status, are required to expend substantially all of their income directly for the active conduct of their exempt purposes. In contrast, "nonoperating" foundations carry out exempt (charitable) activities in an indirect manner by making grants to other organizations that carry out these activities. Approximately 3,300, or 13 percent, of the 25,363 nonoperating foundations did not make any grants for 1982. However, the majority were small organizations, and about 75 percent of them set aside funds eamarked for future charitable projects, made program-rel ated investments, or incurred qualifying expenses for charitable purposes which met or exceeded the required minimum distribution for 1982. It should also be noted that many nonoperating foundations which do not make grants were formerly classified by the Internal Revenue Service (IRS) as public charities. If an organization fails to meet IRS' requirements for retaining its public charity status, that organization is reclassified as a private foundation. Most often, these reclassified organizations continue to operate as public charities, operating programs or providing direct services as opposed to making grants to accomplish a charitable purpose. *Foreign Special Projects Section. Marvin Schwartz, Acting Chief. For 1982, it is estimated that there were 28,468 ac ti ve p ri vate foundations (both grantmaking and nongrantmaking), an overall growth of 1.7 percent over 1979. The growth of foundations in asset classes of $100,000 and above increased at successively higher rates with each graduated asset bracket. This i-s not Size of Fair Market .Value of Assets Total Number of Private Foundations' -T_9T9_ 1982 Percent Change, 1979 to 1982 27,980 28,468 1.7 Under $100,0002 ... 15,632 14,752 -5. 6* $100,000 under $1,000,000 ...... 8,616 9,125 5. 9_ $1,000,000 under $10,000,000 ..... 3,131 3,771 20.4 $10,000,000 under $50,000,000 ..... 486 655 34.8 $50,000,000 or more ......... 115 165 43.5 *Estimate should be u-sed with caution because of the small sample size for this asset bracket. 'Includes fomer public charities reclassified as private foundations. 21ncludes returns with assets zero or unreported. surprising as many organizations that were in a lower asset class in 1979 grew into a higher class by 1982. In the asset range of less than $100,000, there appears to be a 5.6-percent decrease in the number of foundations. However, because of the small number of returns studied with assets below $100,000, this apparent decline also could be attributed to sampling variability. (See the coefficients of variation explained in the "Data Sources and Limitations" section of this article.) [31 The Ford Foundation clearly maintained its position- as the front-runner in tems of the Prepared under the direction of I Private Foundations, 1982 2 I size of asset holdings and amount of grants awarded [4]. While Ford remained well ahead of all other foundations, some foundations had assets in, or near, the billion-dollar range. Excluding the J. Paul Getty Museum Trust, which is classified- as an operating foundation and for 1982 had nearly $2 billion in assets, Figure A lists foundations which reported fair market value of assets above $500 million. Also provided in Figure*A are data on ledger assets, grants paid, and the 5-year carryover of distributions made in excess of the amount required. These 11 largest organizations held 19.2 percent of all assets owned by private foundations, and were responsible for 8.6 percent of the dollar value of all grants paid. FIT5-re-W as, P.-tiva-09 0.0010- IN111ro-5 Rank Name I Ford Foundation Excess FMV Ledger Grants Distribuillons Assets Assets Paid Carryover 3,529.2 3,529.2 103.9 8.0 3.9 A310TO 3 Andrew W. Mellon Foundation 1.089.7 774.2 59.3 990.3 707.5 22.3 847.9 211.2 27.0 9 Kresge Foundation 681.5 519.2 8.9 11 Carnegie Corporation of N.Y. 511.3 416.7 13.4 5 The MacArthur Foundation 3.1 The four foundations listed which show no excess distributions carryover did not distribute the minimum amount required for 1982 because they first had to apply a portion of amounts their 1982 distributions against remaining undistributed from 1981. Foundations have unti l the end of thei r next, tax year to distribute the minimum amount required for the current year before they are liable for the excise tax levied on undi stri buted income. This 1-year grace period provides to foundations the opportunity to plan systematically their grantmaking activity to correspond with their investment performance. To measure private foundation philanthropic giving, the contributions reported by foundati ons on returns filed with the Internal Revenue Service (IRS) for 1982 were compared to those reported to IRS by all other private sources [5]. Foundations accounted for approximately one dollar out-of every ten contributed from a private donor. Type of Donor Contributions Billions) Percent of Total 45.11 34.05 4.43 2.91 2.25 1.42 100.0% 75.5 9.8 6.5 5.0 3.1 Total Individuals [61 Foundations [71 Corporations [81 Bequests [91 Trusts & Estates (101 NOTE: Detail may not add to total due to rounding. Government social welfare expenditures, a measure of public philanthropy compiled by the Social Security Administration [111, can also be used as a comparative base to show the magnitude of public versus private support for The amount of social philanthropic programs. welfare expenditures for Fiscal Year 1982, adjusted to xclude $302.6 bi.llion for social security insurance benefit payments, was $291.8 billion. These public expenditures were about 6 times greater than total private contributions and about 66 times greater than the contributions of private foundations~ and direct operating If administrative expenses incurred in the conduct of foundations' charitable purposes are added to the amount of the contributions they paid out, the resulting total charitable expenditures of all Comfoundations for 1982 were $5.2 billion. pared to the Gross National Product (GNP) for 1982, Government social welfare expenditures (minus the social security pqrtion) comprised 9.5 percent of GNP while private foundation charitable expenditures were less than 0.2 percent of GNP. However, the nature of systematic foundation funding provides an opportunity for initiating innovative research, programs, and test projects which-the Government cannot undertake because of political, legislative, or In the wake of recent budgetary constraints. many Government-supported budget cuts in programs, some foundations are thinking more Although about publ ic-pri vate partnerships. they do not believe their role should be solely one of filling Federal philanthropic spending foundations foresee situations gaps, these where the formation of creative public-private partnerships to devise new approaches to social needs can produce positive results [121. CHARACTERISTICS UNIVERSE OF THE PRIVATE FOUNDATION A private foundation is a nonprofit corporation, association or trust with a narrow source of funds which operates or supports social, educational, scientific, charitable, religious I Private Foundations, 1982 and other programs dedicated to improving the general welfare of society. By IRS definition, a private foundation is an organization which qualifies for tax exempt status under Internal Revenue Code section 501(c)(3) and is not a research church; school; hospital; medical organization; an organization with broad public support (public charity); an organization which is operated by, or in connection with, any of the above described organizations; or an organization which tests for public safety. The primary difference between foundations and public charities lies in the sources of their funding. Foundations usually receive their funds from an individual, a family or a corporation, while, as their name implies, public charities' funds are derived mainly from a large number of sources within the general public. Another distinction of a private foundation is that it primarily makes grants to other nonprofit organizations, such as public charities, rather than directly operating its own charitable programs. (An exception is the operating foundation which is described below.) As noted earlier, some organizations which are classified as private foundations were formerly public charities whose status as such was revoked because they failed-to maintain the required minimum of support from public sources. While classified as private foundations, they generally continue to operate as public charities. Foundations form a diverse community distinguished by a wide range of characteristics, including asset size; sources of support; size of managing staff; type of control; and grant size, type, and recipient. Foundations can be classified into two broad categories, operating While the great majority of and nonoperating. foundations are nonoperating (generally grantmaking) organizations, some use their funds to actively operate charitable programs, rarely making contributions or grants to other organizations. These are called operating foundations. Nonoperating foundations include independent and company-sponsored foundations. Independent foundations can be general-purpose, specialpurpose or family foundations [131. The general -purpose foundation supports a broad endeavors while the range of charitable special-purpose foundation concentrates on limited fields of interest. Family foundations are established with a gift from a single donor and are operated or controlled by members of the donor's family. Sane large independent foundations operate with staffs whose members are unrelated to the foundation's donor(s). All of the domestic foundations listed in Figure A are independent foundations. Company foundations are closely related to the torporations which sponsor them. Many of their grants support charitable activities and improvement projects in the locality in which the company is based, or are made to tax-exempt organizations to conduct charitable research in areas related to the company's interests. Although contributions to company-sponsored foundations usually correspond to the profits of the corporation, i.e., more corporate giving in good years and less in poor years, they have the ability to maintain and control their endowment in a way to provide a steady flow of grants, even when corporate profits are down. Alcoa Foundation, General Motors Foundation, and Western Electric Fund are three of the largest company-sponsored foundations. Community foundations are established to make grants for nonprofit programs conducted in a specific community or region [141. Although largely publicly supported by the citizens and businesses of the community, and therefore excluded from IRS' private foundation definition (and also from the statistics presented in this report), community foundations account for a respectable portion of grantmaking philanthropic activity in the private sector. For example, 234 community foundations for 1982 made grants estimated at $233.8 million, an amount equal to 5.0 percent of total foundation giving [151. It should be noted, however, that $102.2 million of total community foundation grants can be attributed solely to the San Francisco Foundation, the New York Community Trust, the Cleveland Foundation, and the Chicago Community Trust. FINANCIAL DATA AND CHARITABLE DISTRIBUTIONS The $47.2 billion in market value assets of the 820 largest private foundations, those with asset holdings of $10 million or more, comp ri sed 75 percent of all assets held by foundations for 1982. In contrast, 84 percent of the foundation population, holding assets worth less than $1 million, accounted for only 6 percent of the total, or $3.7 billion (see Figure B). Assets of all foundations rose by 41 percent between 1979 and 1982. Total receipts increased by 52 percent, while The resulting deductions rose by 65 percent. net income (less deficit) for 1982 was $3.3 billion, a growth of 33 percent from 1979 [161. The graphic PtS, depiction of aggregate recei assets (fair market foundation value) , and grants paid in Figure C shows that constant dollar increases in these financial data were 19, 11, and 23 percent, respectively. Sources of Income and Deductions Dividend and interest income was the largest source of foundation receipts for 1982. While Private Foundations, 1982 4 Itigure B Number of Foundations and Their Assets, By Size of Total Fair Market Value of Assets, 1982 (Money amou nts are In billions of dollars) Percent of Total ' 901 Size of Assets r__l Under $1,000,000 r__J $1,000,000 under $10,000,000 = $10,000,000 under $50,000,000 = $50,000,00.0 or more $10 million was nearly equally split between interest and dividend income and contributions. The reliance upon contributions from outside sources as a major form of support is more common for small organizations. As thei r assets increase, foundations usually develop larger and more diverse investment portfolios, freeing them from dependence on large amounts of contributions. Most large foundations have received a single substantial bequest or endowment which serves as their primary base from which to produce income and further increase their assets. These endowed foundations rely on their investments to produce income and, therefore, do not need to depend heavily on the'receipt of contributions. The most significant shift in the composition of total income, shown in Figure D, between 1979 and 1982 occurred in sales of capital assets and in contributions, gifts and grants received. The increase in sales of capital assets possibly indicates that foundations are beginning to restructure thei r investment portfolios, a newfound freedom made available by a 1981 tax law change which eliminated the requirement for foundations to pay out all of income for charitable their investment purposes. (The effect of the law change is explained more fully in- the "Composition of Assets" section of this article.) 4easure of Total Receipts, Total Assets, and Grants Paid, 1979 and 1982 1979 1982 1982 in constant 1979 dollars 5 TotAl Receipts Fair Market Vaiup Assets Grants Paid these items together also ranked as the numberone income source for the large foundations, contributions dominated as the leading income source for organizations with assets under $1 million. The primary source of receipts for foundations with assets of $1 million to Because of a 1981 IRS return fom change in the method of reporting dividends and inierest, these income items individually cannot be colnpared between 1979 and 1982. For 1982, total interest was reported separately either, as amounts received from securities investments (which also included dividends received from savings received from stocks) or amounts accounts and temporary cash investments, such as certificates of deposit, money market funds, and U.S. Treasury bills that mature in less than one year. 'Taken as an aggregate amount, receipts the proportion of total however, attributable to dividend and interest income for 1982 remained virtually unchanged from 1979. The average annual prime rate charged by banks was 12.7 percent in 1979, rose erratically to 18.9 percent in 1981, and then steadily deDuring clined to 14.9 percent in 1982 [171. the same period, corporate profits (in current dollars) fell 30 percent to their lowest level since 1976 [181. Economic conditions leading up to, and including, the harsh recession of 1982 contributed to the decline in profits,and likely resulted in dividends on stocks which were lower than they would have been in a Despite the fluctanonrecessionary period. tions in interest rates and dividends paid on investments, the amount of foundation dividend and interest income rose by $1.4 billion between 1979 and 1982. Compared to the investment income received by from interest and dividends, individuals Private Foundations, 1982 reported separately from total expenses because the IRS recognizes, as a qualifying distribution for purposes of meeting the required minimum payout, only the part of an expense item allocable to charitable purposes (as opposed to the production of income or other noncharitable purposes). Effective with Tax Year 1985, Congress placed a cap on the amount of administrative expenses incurred in making grants which a foundation can apply as a qualifying distribution. The Treasury Department has been mandated to conduct a study of foundation administrative expenses and to submit findings to Congress upon its completion. Figure D Major Sources of Income, 1979 and 1982 Dividends and Interest from Securities Other Interest from Savings and Temporary Investments foundations fared much worse in the rate at which these items grew from 1979 to 1982. Foundation income from these sources increased 56 percent, from $2.4 billion to $3.8 billion, at the same time as the increase for individuals was 94 percent, from $108.9 billion to $211.1 billion. The investment outlook for foundations should improve after 1982 because of the law change mentioned above which freed them from the constraint of having to distribute all of their interest and dividend income each year. (For an explanation of how the law change affected the structure of foundation investment portfolios, see the discussion of the "total return" philosophy in the "Composition of Asset" section of this article.) Foundations must report both total expenses as recorded on their books of account, and the part of those expenses which can be attributed to the direct conduct of their charitable mission. Charitable-purpose expenditures are Depreciation and depletion are allowed as deductions on a foundation's books, but may not be treated as a charitable-purpose expenditure because the entire cost of a charitable-use asset is treated as a qualifying distribution when the asset is acquired. Figure E shows nonoperating foundation expenses as reported on thei r books and di stributions for their charitable purposes. The portion of nonoperating foundations' expenses which was directly related to activities which constituted their charitable purposes totalled $4.7 billion. For ease of comparison, the three categories of nonoperati ng foundation asset sizes shown in the figure are described as small, medium, and large. Across all three asset sizes, contributions, gifts and grants made up the largest single share of total expenses, reported both on the books and as a charitable disbursement. More than 93 percent of aggregate charitable-purpose expenses were in the fom of grants paid. A distant second to grants was "other expenses," at 2.4 pement of total charitable disbursements. The remaining eight categories of itemized expenses accounted altogether for only 4.2 percent of the total. The rati o of di rect charitabl e-purpose expenditures to expenses reported on the books reveal s different charitable di stri buti on patterns for the three foundation sizes. Small foundations have much lower ratios for the three categories related to paid staff--officer compensation, other salaries, and employee benefits (including pension plan contributions). Since small foundations usually are operated by volunteers and fund programs of smaller size, they do not have the personnel expenses of larger foundations for reviewing grant proposals, administrative record-keeping of grant programs, and research and ongoing involvement grantmaking program in new activities. Medi um si ze foundations claimed a larger percentage of their interest expense as a di rect charitable expenditure. This is probably due to the fact that, in proportion to their total assets, medium foundations hold approximately two-to-three times more land, Private Foundations, 1982 Expenses Per Books (EPB), Disbursements for Charitable Figure E.--Nonoperating Foundations: Purposes (DCP), and Ratio of Charitable Disbursements to Expenses Per Books, by Size of Total Fair Market Value of Assets, 1982 Monev amounts are in millions of dollars] Size of Total Total Expense Item Total expenses ................. ... Contributions, gifts, grants ' Compensation of officers .............. Other salaries and wages ............ Pension plans, employee benefits .... Professional services ............... Interest ............................ Taxes ............................... Depreciation and depletion .......... Occupation .......................... Other expenses ...................... Expense Item Total expenses .................. Contributions, gifts, grants ........ Compensation of officers ............ Other salaries and wages ............ Pension plans, employee benefits .... Professional services ............... Interest ............................ Taxes ................................ Depreciation and depletion .......... Occupation .......................... Other expenses ...................... EPB DCP Ratio 5,260.77 4,423.31 89;80 86.37 25.02 122.13 15.31 153.52 29.68 16.41 299.22 4,670.65 4,364.34 49.50 68.52 17.44 35.69 2.66 6.56 N/A 13.47 112.47 88.8 98.7 55.1 79.3 69.7 29.2 17.4 4.3 N/A 82.1 37.6 Fair Market Value of Assets Less than $J,UUU10T _ DCP Ratio ___TTB_ 923.07 863.88 8.22 2.86 1.17 12.78 1.44 7.32 1.77 0.94 22.69 875.10 854.76 1.42 1.21 0.23 3.86 0.19 0.91 N/A 0.80 14.90 94.8 98.9 17.3 42.3 19.7 30.2 13.2 12.4 N/A 85.1 65.7 Size of Total Fair Market Value of Assets--continued $1,000,000 $10,000,000 or more Under $10,000, 00 DEP Ratio EPB DCP Ratio EPB (7) 1,228.61 1,080.82 23.66 12.77 1.34 33.68 2.13 31.77 6.73 2.55 33.18 __T91_ --rrm- _Fl TT_ --TT 21 , 1,174.20 1,118.16 11.23 10.17 1.23 9.55 0.63 2.14 N/A 1.91 19.17 95.6 103.5 47.5 79.7 91.8 28.4 29.6 6.7 N/A 74.9 57.8 3,109.08 2,478.61 57.93 70.74 .22.51 75.66 11.73 114.43 21.18 12.93 243.36 2,618.35 2,391.42 36.85 57.14 16.00 22.28 2.01 3.51 N/A 10.76 78.39 84.2 96.5 63.6 80.8 71.1 29.4 17.1 3.1 N/A 83.2 32.2 9, - Not Applicable. 'While foundations are required to use the cash method of accounting to report disbursements for their charitable purposes, they have an option to use either the cash or accrual method in reporting expenses on their books. Using the accrual method for expenses on the books can result in a ratio which exceeds 100 percent. NOTE: Detail may not add to total because of rounding. buildings and equipment which are used for charitable purposes than the other foundation sizes. charitable-purpose The proportion of expenditures allocated by large organizations for taxes was small in comparison to foundaLarge other two groups. tions in the foundations hold more than twice as much depreciable investment property compared to the other foundations, so they pay more in real Since real estate taxes on estate taxes. investment property can be reported as a total expense item, but are not includable as an exempt purpose expense item, the ratio for taxes paid by large foundations is lower than and medi um si ze the rati o for the smal 1 The excise tax on investment foundations. i ncome paid by all three foundation asset categories is not deductible by nonoperating foundations as a charitable-purpose expenditure. Composition of Assets Total fair market value of foundation assets for 1982 showed an increase from 1979 of 41 percent. Investments in securities constituted the greatest share of market assets held by foundations, with holdings of cash placing second. Holdings in long-term investments other than in securities accounted for the next largest portion of assets. Private Foundations, 1982 For 1982, foundations held a total investment in stocks and bonds having a fair market value of $49.8 billion. These investments earned dividends and interest totalling $3.0 billion, a yield of 6.0 percent. It has been argued by some that foundations fail to obtain a reasonable rate of return on their stock and bond To test this argument, a investments [201. base for comparison was constructed for 1982 using measures of average yield for composite investments: 1982 dividend yields on common stocks of the 500 corporations included in the Standard and Poor's composite average and the 1982 yield for the composite U.S. Treasury long-term bond average [211. Had foundations invested in these composite assets in the same proportions as they invested in stocks and bonds in 1979 (stocks and bonds together were reported as a single amount on the 1982 information return), they -would have enjoyed a significantly higher return of 8.5 percent. However, it was only beginning in 1982 that foundations could restructure their portfolios to take advantage of the 1981 law change in the payout rule. (See the discussion of the law change below.) An examination of yield data for various fair market value asset distributions revealed that as asset size increased the yield on security investments decreased, from a high of 8.9 percent earned by foundations holding assets worth less than $100,000 to a low of 5.3 percent earned by those holding assets worth $50 million or more. This may support the theory that the investment strategies of larger foundations (traditionally more heavily invested in securities than smaller foundations) were significantly affected by a pre-1982 payout rule which required foundations to distribute for charitable purposes the greater of their current investment income or 5 percent of thei r investment assets (both amounts subject to further adjustments). Because of the decline in the real value of foundation securities caused by high inflation rates and the requirement to pay out their current investment income (if greater than 5 percent of investment assets), many foundations opted for a "total return" philosophy on stocks and bonds which takes into account not only dividends, but also appreciation. These foundations were inclined to hold greater concentrations of securities which had lower income yields but the potential for higher appreciation values. Under the new payout rule, enacted in late 1981, foundations no longer are required to make distributions out of current income in excess of 5 percent of their investment assets. The new law offers foundations an opportunity to restructure their investment 7 portfolios to include securities which produce higher rates of return. In so doing, yields in excess of 5 percent could be put back into their endowments. While the percent yield on securities held by larger foundations remains comparatively low for 1982, the increase in sales of capital assets mentioned in the "Sources of Income and Deductions" section tends to suggest a changing trend in foundation investment practices. Market Value Asset Size Interest Investments and Dividend in Income From Securities Securities Percent (S Millions) ($ Millions) Yield Total ....... 49,822.6 2,970.2 6.0% Under $100,0001 ...... 176.9 15.7 8.9 $100,000 under $1,000,000..... 1,975.8 174.1 8.0 $1,000,000 under $10,000,000.... 8,080.0 566.8 7.8 under $50,000,000.... 10,017.1 646.1 6.5 $50,000,000 or more ...... 29,572.8 1,567.5 5.3 $10,000,000 'Includes returns with assets zero or unreported. Assets in terms of book value rose at nearly the same rate as market value assets, by 39 per-cent from 1979 to 1982. Since 1981 was the first year for which foundations were required to report their asset components at market value on the Form 990-PF return, comparisons of 1982 data to earlier years must be presented using amounts reported on the foundations' books. Also effective with 1981, the reporting of securities on the information return was not required to be separated into stocks, bonds, and Government obligations as in previous years. Comparison is therefore limited to the aggregate amount of securities as reported for 1982. Securities, long the most prominent type of assets in the portfolios of foundations, continued an upward trend increasing by 89 percent since 1974 [22]. For all 3 years presented in the table below, holdings of securities in terms of their proportion to total assets remained constant at 78 percent. 8 Private Foundations, 1982 Percent Change, 1979 to 1982 Type of Asset Income Year 1974 -1979 1982 T$ B i M'on s) 17 Total ........ 25.5 34.7 48.2 39% SecuritieS2. .. .. Cash, totaT .... Savings and interestbearing accounts ..... Non-i nterestbearing accounts ...... Depreciable assets and land held for charitable purposes ....... Accounts and notes receivable ..... Other ........... 19.9 1.2 26.9 2.0 37.4 4.6 39 131 0.8 1.4 4.2 190 0.4 0.6 0.5 -15 ties that were 73 percent higher for 1982 than they were for 1979. However, as a ratio to total assets, liabilities for these 2 years differed by only 1 percent, with liabilities for 1979 being 4 percent of assets and for 1982, 5 percent. Traditionally, the proportion of liabilities has remained relatively low from year-to-year because foundations normally do not borrow funds but operate principally using contributions they recei ve and income from i nvestments. (Foundation income from investments which were purchased with borrowed funds are subject to the unrelated business income tax under the debt-financed provisions of the Internal Revenue Code.) Excise Tax on Net Investment Income 0.3 0.6 1.1 77 1.0 3.1 0.8 4.3 0.9 4.1 22 -5 'Assets used were the book value reported._ 'Includes corporate stocks, corporate bonds, and Government obligations. The large increase in total cash held by foundations in general is attributable to savings and temporary cash investments, which rose by 190 percent between 1979 and 1982. For foundations with assets of $10 million or more, Even though a the increase was 338 percent. downward trend in interest rates began in mid-1982, the average * annual prime rate was still significantly higher for 1982 than it was for 1979, 14.86 percent compared to 12.67 percent. Still riding on the thrust of interest rates which had reached an all-time high during 1981, foundations evidently continued to funnel more income into short-term investments for 1982. For foundations with less than $100,000 in book val ue assets, hol di ngs of cash and securities switched their positions of. importance, with cash comprising 41 percent of assets and securities. ranking second at,-37 percent. The book value of land and depreciable -assets held for charitable purposes (as opposed to investment purposes) also rose significantly between 1979 and 1982, although. their dollar amount remained small in relation to total assets. There was an increase in all components of liabilities from 1979 to 1982. The increases ranged from 42 percent for mortgages and all other notes payable to 216 percent for accounts pay abl e. Foundations reported total liabili- Approximately - 24,000 -private foundations incurred excise taxes totalling $111.4,million on their net investment income'for 1982. The amount of excise tax reported increased by 78 percent between 1979 and 1982. The excise tax on net investment income is a type of "audit" tax levied on foundations under the Tax Reform Act of 1969 to provide funds for IRS oversight of foundation activities and enforcement of laws governing their exempt status. "Since the excise tax is c6moluted as a specified percentage of income earned on investments (after allowance for certain expenses), its burden is borne most heavily by foundations with mo re successful investment portfolios [231. As the asset size of a foundation grows, it relies more on investments for the production of income. This results in larger excise tax payments in proportion to asset size for the larger foundations. Charitable Distribut-ions The following discussion of foundation charitable di stri butions excludes operating foundations. Because they disburse their funds for the active conduct of charitable projects, operating foundations are not subject to the distribution requirement. All references to foundations in this section on charitable distributions are for nonoperating foundations. Private foundations are required to distribute annually a minimum amount for charitable purposes. This computed minimum amount is based on 5 percent of a monthly average of thei r investment assets after allowances are deducted for indebtedness incurred in acquiring the assets and any cash reserved for charitable activities. The result of the computation is called the "minimum investment return." Foundations are then allowed additional adjustments to the minimum investment return, including deductions for the excise tax on net investment income and taxes on any "unrelated business income." The adjusted minimum investment return, called the "distributable I I Private Foundations, 1982 amount," is the actual amount foundations must distribute for charitable purposes during their annual accounting period. A foundation is subject to a two-tier system of penalty taxes for any portion of the distributable amount which it fails to pay out for charitable causes by the end of its next accounting period. I Amounts which qualify toward meeting the minimum required distribution include foundation expenditures for accomplishing its charitable purpose; program-related investments; amounts paid to acquire assets directly used, or held for use, in carrying out its charitable function; and any amounts set aside for future payment for a specific charitable project. These amounts are called "qualifying distributions." Foundations may also utilize carryovers (amounts paid out in excess of the amount required) from 5 previous years' grantmaking to meet the minimum payout requirement. As discussed earlier, the distributable amount prior to 1981 was defined as the greater of "adjusted net income" (current income derived from the ownership of property or from income-producing activities, whether charitable or not, less allowable expenses) or the minimum investment return. With the enactment of the Economic Recovery Tax Act of 1981, Congress changed the definition to limit the computation of the distributable amount to the minimum investment return without regard to the adjusted net income. The change was intended to provide relief to foundations during a period of high inflation (1981 saw the height of inflation rates) [241. High inflation rates tended to decrease the real value of a foundation's net income. If the distributable amount was based 9 on the entire amount of a foundation's adjusted net income (the real portion plus the inflationproduced portion), the gradual effect would be an erosion of the real value of its investment assets [251. The data presented in Figure F show the effect of the 1981 tax law change on the amount foundations were required to expend for charitable purposes for 1982. Under the pre-1982 rules, foundations would have been required to pay out $4 billion, $1.6 billion more than was requi red for 1982. Private nonoperating foundations for 1982 made qualifying distributions of $4.9 billion, over twice the amount required to be distributed. The effect of the revised distribution calculation is further demonstrated by a comparison of the distributable -amount for 1979 to that for 1982, in constant 1979 dollars, which shows a 23-percent real decline between the two years. Although nonoperating foundations collectively made qualifying distributions for 1982 that exceeded the distributable amount required under both the existing and previous laws, organizations with $10 million or more in assets as a group distributed $126.8 million less than the amount that would have been required if adjusted net income had still been a factor in determining the distributable amount. This would be expected since the law change, limiting the required payout to 5 percent of investment assets, was intended to help most those foundations which relied more heavily on investments as a principal source of income. Based on the higher rate by which their adjusted net income exceeded their minimum investment return, it appears on the surface Figure F.--Nonoperating Foundations: Comparison of Adjusted Net Investment Return (MIR), by Size of Total Fair Market Value of Assets Income (ANI) with Minimum Dioney amounts are in millions of dollars] Item Total Si ze of Total Fai r Market Value .O1UU,UUU $1,000,woUnder under under $100,000 M $1,000,000 TYT- $10,000,000 (4) _' M ....... 25,363 Number of returns with ANI greater than MIR ......... 17,970 7,007 7,314 2,995 654 Greater of ANI or MIR .......... MIR ............................ 4,097.1 .2,458.3 41.1 21.4 256.8 138.2 827.5 466.5 2,971.7 1,832.3 Difference ..................... 1,638.8 19.7 118.6 361.0 1,139.5 Difference as percent of MIR ... 66.7 92.1 85.8 77.4 62.2 Number of returns, total NM : DetaTiT may not add t6--tota 8,577 $10,000,000 or more ecause of rounding. 750 Private Foundations, 1982 10 that the smaller foundations benefited the most f rom the new provi si on. However, small organizations historically have made charitable distributions that well exceeded their annual required minimum. Unlike small foundations, most of the money distributed by large foundations for charitable purposes comes from their i nvestment i ncome. Since the distributable amount is dependent on the size of investment assets, the reduction in the distributable amount is more significant to large organizations. This concept is discussed more fully in the analysis of. Figure G data which follows below. of all Eighty-f i ve percent nonoperati ng foundations made qualifying distributions above the required 5 percent of net investment assets (after allowed adjustments), and more than half of these foundations paid out amounts which While the were equal to 10 percent or more. remaining 15 percent made qualifying distributions which were less than the required percentage, they may have exercised their option to combine all or a portion of their 5-year excess distributions carryover with their current-year qualifying distributions to fulfill the required distributable amount for 1982. As noted earlier, no penalty or tax would have been imposed on a foundation which did not pay out the required amount for 1982 unless it failed to do so by the end of its 1983 tax year. A small number of those paying out-less than 5 percent were allowed to do so because their IRS return was filed for an accounting period of less than one year. Figure G graphically measures, through the use of ratios to total investment assets, how various asset size classes stack up in a com- Figure G Nonoperating Foundations: Required Distributions, Qualifying Distributions, Undistributed Income, and Excess Distributions Made for 1982, By Size of Total Fair Market Value of Assets 100 = Required Distributions (Distributable Amount) 95 Actual (Qualifying) Distributions = Undistributed Income 90 Excess Distributions Made for 1982 85 80 Percent of 75 Investment Assets 20 16.5% 15 12.9% 10 7.6% $100,000 under $1,000,000 $1,000,000 under $10,000.000 Fair Market Value of Assets $10,000,000 or more Private Foundations, 1982 pari son of charitable distribution items. While the smallest foundations made philanthropic di sbursements which were extremely large in proportion to their investment assets, the aggregate distributions of the other asset classes still exceeded the required amount. It is important to differentiate between small (assets under $100,000) and large (assets of $10 million or more) foundations by each group's principal source of income and how it affects their qualifying distributions. When income sources are considered, the dramatic decreases in qualifying distribution percentages that accompany increases in asset size are more understandable. Since the distributable amount is based on a percentage of investment assets, and the principal source of income for large foundations is their return on investments, it is not surprising that the amount of their qualifying is the distributions relatively close to required distributable amount. Small organizations generally make qualifying distributions which are much higher than those requi red because the contributions they receive, which comprise most of their income, are not taken into account in computing the distributable amount. In fact, as a percent of their assets, contributions received by small organizations for 1982 equalled 53.4 percent compared to 2.9 percent when calculated for large foundations. Traditionally, small foundations not only serve as a conduit for all of the contributions they receive, but they pay out substantially more of their income as well. To illustrate further the effect that the omission of contributions from the distributable amount had on the required and actual payouts of the two asset groups, contributions received for 1982 as a percentage of their respective distributable amounts were 806 percent for small foundations compared to 68 percent for large foundations. The 1982 undistributed income (the portion of the required distribution which was not actually paid out as a qualifying distribution for 1982) of all asset groups appears to be a fairly stable proportion of their investment assets, ranging from 1.1 to 1.5 percent. As would be expected because of their direct relationship to qualifying distributions, excess distributions for 1982 (amounts paid out which were in excess of the amount required) were much higher, rel ati ve to investment assets, for small foundations than for large foundations. After applying their 1982 qualifying distributions toward any prior-year undistributed income and the current-year distributable amount, foundations made excess distributions for 1982 of $1.6 billion. 11 Legislative Analysis Following is a brief analysis of major tax law changes affecting private foundations from 1969 to 1 984. For a more in-depth account of private foundation legislation, see the Appendix at the end of this article. The Tax Reform Act of 1969 was the f i rst comprehensive piece of legislation affecting private foundations. Recommendations for increased Governmental regulation of foundations from a Treasury Department study (described in the Appendix to this article) and heightened public concern over reported controversial foundation activities culminated in hearings of the House Ways and Means Committee in early 1969. The Committee's findings led to the passage of the 1969 Act. The provisions of the 1969 Act covering foundations were enacted to correct and prevent any real and potential abuses of their charitable status. Enactment of the Economic Recovery Tax Act of 1981 afforded individuals who could not itemize their deductions the tax benefit of deducting charitable contributions. Congress believed this would stimulate charitable giving and provide funds to nonprofit organizations providing services which the Federal Government might otherwise need to fund. This provision terminates after 1986, so that its effectivebe ness in stimulating contributions can analyzed. The 1981 Act also changed the method of computing the minimum payout requirement in an effort to provide relief to foundations from the effects of high inflation. Many of the foundation provisions of the Tax Reform Act of 1984 provide tax incentives and remove regulatory restraints in an effort to encourage the formation of new foundations. Provisions of the tax bill which are expected to promote philanthropic giving are increased deductibility allowances for individuals' gifts to charities, the 1-percent reduction in the 2-percent excise tax if a 5-year average of the foundation's qualifying distributions increases by a like amount, and a change in the minimum payout rule that limits the amount of administrative expenses incurred in the making of grants that may be treated as qualifying distributions. The Treasury Department has been directed to study the effects of the new payout requirement, which expires on December 31, 1990, unless Congress acts to continue it. SUMMARY For 1982, approximately 28,500 private foundations spent over $5.2 billion for philanthropic purposes. Of this expenditure, $4.4 billion was in the form of grants made to tax-exempt organizations di rectly operating charitable programs. 12 Private Foundations, 1982 In 1979 dollars, total fair market value of assets for 1982 increased by 11 percent over 1979. Despite erratic shifts in the economy between 1979 and 1982, foundation interest and dividend income, the primary aggregate income source, rose by 56 percent over 1979. A 1981 tax law change, intended to provide rel i ef to foundations from high inflation, effectiv6ly lowered the amount foundations were The new law required to distribute for 1982. seemed to have a positive effect on many foundations and had no apparent negative impact on the amount of qualifying distributions made for-philanthropic purposes. DATA SOURCES AND LIMITATIONS The statistics in this article are based on a sample of 1982 Income Year private foundation returns, Forms 990-PF, filed with the Internal Revenue Service and having accounting periods ending December 1982 through- November 1983. Forms 990-PF filed by nonexempt charitable trusts and certain taxable foundations were The sample was excluded from the study. stratified based on size of total book (ledger) value of assets and selected at rates that ranged from 0.7-percent to- 100 percent. There were 1,309 returns in the sample drawn from an estimated population of 28,468. The 1982 sample was designed to provide the most reliable estimates -of total assets and total income using limited resources (budgetary constraints necessitated a very small sample The methodology employed to obtain the size). desired results was to include in the sample all returns with assets (book value) of $10 million or more, the category where the highest The 634 concentration of assets exists. returns in this group accounted for approximately 70 percent of total assets and 50 The remaining 675 percent of the sample. returns in the sample were randomly selected at various rates, depending on their asset size. Due to the small number of sample returns selected to represent the population of returns with assets worth under $100,000 (99 sample returns), the statistics presented for this group are subject to significant sampling variability and should, therefore, be used with caution. The population from which the sample was drawn consisted of the latest private foundation records on the IRS Business Master File. Determinations of active filing status were made regarding the sample records. Some of the records drawn were deemed inactive (no return had been filed for at least 3 years), terInactive minated, or not yet filed for 1982. and terminated private foundations were not reflected in the estimates. Prior-year -returns were substituted for the small number of large private foundations for which a 1982 return had not yet been filed or was unobtainabl'e for inSample weights applied clusion in the study. to small organizations were revised upward to compensate . for missing returns in the latter category. Asset distributions i)resented in the 1982 tables have been comDressed dup to the small - numbers of returns with assets less than $10 million selected for the sample. Because the data presented in this article are estimated based on a sample, they are subject to sampling error, as well as nonsampling error. 'To -.use - the stati stical data properly, the magnitude of the sampling error should be Coefficients of variation (CV's) are known. used to measure that magnitude. The table below presents an estimate of the sampling error, expressed as a coefficient of variation, for frequency estimates of private foundation returns with less than $10 million Returns reporting assets of $10 in assets. million or more were selected at a rate of 100 is not percent; therefore, this category The approximate subject- to sampling error. CV's shown here are intended only as a general indication of the reliability of the data.. For a number other than those shown below, the corresponding 'CV's- can be estimated by ihterpolation. , Estimated Number of Returns by Size of Total Assets' Under $100,000 $100,000 $1,000,000 or Not Under Under Reported $1,000,000 $10,000,000 Approximated Coefficient of Variation 9,683 4,126 1,810 1,010 463 .05 .07 .10 .15 .20 .30 14,584 6,482 3,683 1,620 3,567 1,897 928 412 237 103 'Total assets used were the book value reported. The uppermost number in each column is the actual total number of returns in the asset class. A discussion of the reliability of estimates based on samples and the use of coefficients of variation for evaluating the precision of sample estimates can be found in the general Appendix to this publication. EXPLANATION OF TERMS Non-tec hnical terminology has been used in this article, wherever possible, to assist in the understanding of the statistical content. However, in Tables 1-6, the technical terms are used as they appear on the tax return form. Private Foundations, 1982 Therefore, to assist users of these data, explanations of some of these teryns are provided wi th both thei r technical and nontechnical meanings. (The latter are denoted in parenA more comprehensive explanation of theses.) terms appears in Statistics of Income--19741978, Private Foundations (see reference L22J). Adjusted Net Income (Receipts Less Expenses) item represented the gross income This derived from, or in connection with, property held by the foundation or from income-producing activities reduced by allowable deductions. It net short-term included investment income, capital gain, repayment of "qualifying disfrom business tributions," gross profit activities, and certain miscellaneous income. Excluded from income were gross contributions, gifts, and grants (received); contributions f rom split-interest trusts; gross dues and assessments; net long-terTn capital gains; and net short- and long-term capital losses. Distributable Amount (Required Minimum Distribution) Distributable amount was the foundations' minimum investment return" less taxes on net investment income and unrelated business The income, and net of a ny adjustments. distributable amount represented the minimum payout which had to be distributed by the end of the year following the year for which the return was filed in order to avoid payment of an excise tax for failure to currently distribute income. payouts to other private foundations, if the recipient foundation agreed to distribute the same amount for charitable purposes by the end of the following tax year. In addition, funds set aside for major tax-exempt projects were also included. Qualifying distributions were creditable against a private foundation's obligation to pay out its "distributable amount." Value of Noncharitable Assets (Investment Assets) For purposes of calculating 11minimum investment return," only the assets that were not used or held for use for exempt purposes entered into the computation. An asset was not used directly in carrying out the foundation's exempt purpose if the asset was not used in the carrying on of a charitable, educational or other similar function which gave rise to the exempt status of the foundation. NOTES AND REFERENCES (to Article) [11 Data cited for 1979 are from Petska, Thomas B., "An Examination of Private Foundations for 1979, " Statistics of Income Bulletin, Fall 1982, Volume 2, Number 2. E 21 All inflation-adjusted figures cited in this article have been derived using the Gross National Product Implicit Price Deflator. See U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business, 1974, 1979, anETM-2-7 [31 Since the returns selected for the 1982 study form a panel to be studied in successive years, the question of an actual decline in the foundation birth rate will be investigated as these foundations are tracked from year to year. [4] Under Internal Revenue Code section 6104(b), the Internal Revenue Service can disclose to the public the information which is required to be reported on private foundation information returns. L5J The contribution data presented for i ndi vi dual s, corporations, bequests, trusts and estates were obtained from income tax returns and are subject to certain limitations inherent in the use of administrative records. The use of these data is intended here as a general measure for comparison with foundation charitable giving, and may not necessarily represent contributions actually paid or received in a given tax period. Factors which can affect the amount of contributions reported on certain tax returns are a limitation on the amount 01 IExpenditures for Exempt Purposes (Philanthropic or Charitable Spending) These deductions represented expenditures for activities that were directly related to the tax-exempt purposes of the foundation. Included were necessary and reasonable administrative expenses paid for charitable, scientific, educational, or other similar purposes. These amounts were determined solely on the cash receipts and disbursements method of accounting. Minimum Investment Ts`se_ tsT_ Return (Fixed Percent 13 of This was the aggregate fair market value of assets not used for charitable purposes less the sum of indebtedness incurred to acquire those assets and cash held for charitable activities, multiplied by 5 percent. Qualifying Distributions (Actual Distributions) These were direct expenditures for charitable purposes or for assets used for such purposes. They included payouts to public and charities and operating foundations, I 14 Private Foundations, 1982 which can be deducted, allowance of a disallowed contributions carryover of from previous years and, in the case of fiduciary returns (trusts and estates) an election to treat contributions mad~ in one taxable year as being paid in the The charitable preceding taxable year. bequest data were obtained from a study of estate tax returns filed with gross Had the estate of $300,000 or more. bequests of persons- with estates less than $300,000 been included, it is estimated -that -the amount shown would have been approximately 10 percent higher. [61 [71 U.S. Department of the Treasury, Internal Revenue Service, Statistics of Income-1982, Individual Income Tax Returns, pp. -54 and 61. foundations company-sponsored Includes which -filed a Form 990-PF, Return of Private Foundation, for 1982. [81 U.S. Department of the Treasury, Internal Revenue Service, Statistics of Income-1982, Corporation Source Book, p. 8. [91 U.S. Department -of the Treasury,- Internal Revenue Service, Statistics of Income Division, unpublished table of estate tax returns filed during 1982. Estep, Gary J., "Fiduciary Income Tax Statistics of Income Returns, 19829" Bulletin, Spring 1985, Volume-4, Number T,-p`p_._49 and 56. [101 [151 [161 [171 U.S Department of Commerce, Bureau of Eco~omic Analysis, Handbook of Cyclical Indicators, 1984, p. 99. [18] Ibid., p. 143. 1-19] L Individual data for 1979 derived from U.S. Department of the Treasury, Internal Revenue Service, Statistics of Income-Income Tax Returns1979, Individual Data for 1982 were derive~ Table 1.3. from the same publication, 1982 edition, Table 1.4. The Commission on Foundations and Private Philanthropy, Foundations, Private Giving, sity and Public Policy, The Chicago Univ~_rPress, 1970. Federal Reserve Bulletin, March 1985, Table 1. for 1974 are from U.S. Data cited Internal Department of the Treasury, Revenue Service, Statistics of Income-1974-78, Private Foundations. [201 21.1 [221 [11 [121 [131 [1 41 Data were derived from The Foundation Center, National Data Book, 9th Edition, 9-706. New York: 1985, pp. For readers who are familiar with the Return terminology used on Form 990-PF ', following the of Private Foundation, clarification of income statement terms used in this article and- related tables is provided. Total "receipts" is comparabl e to total "revenue" (Part I, line 13, column A); total "deductions" is comparable to total "expenses" (Part I, line 24, column A); and "net income (less deficit)" is comparable to "excess of revenue over expenses" (Part 1, line 25(a), column A). U.S. Department of Health and Human Services, Social Security Administration, Social Security Bulletin: Annual StatisSocial tical Supplement, 1983, p. 00. di rec t expenditures include welfare Government disbursements to the aged, and poor, plus disabled,. unemployed, expenditures for schools, Government hospitals, and other similar facilities. [231 Hopkins, Bruce R., The Law of Tax-Exempt Organizations, Third Edition, John Wiley and Sons, Tnc., 1979, pp. 475-476. [241 See Joseph, James A., Private Philanthropy and the Making of Public Policy, D.C.: The ounc-iF- on Washington, (PresiFoundations, 1985, pp. 24-36. dent's platform presented at the 36th on annual Conference of the Council Foundations held on April 24-26, 1985.) [251 U.S. Congress, Joint Committee on Taxation, General Explanation of the Economic Recovery Tax Act Of Ml (Public Law 97-34), U.S. GoverniFe-ntPrinting Office, December 31, 1981, pp. 366-367. For detailed discussions of the effect on foundations of the pre-1981 requirement to distribute their actual income if it was higher than their minimum investment return, see Steuerle, Eugene, "Pay-out Requirements for. Foundations," in Research Papers Sponsored by The Commission a n a7-Pu-5T1c Philanathropy on Private Needs, Volume III, Special Behaviorial and Co~ orat~ ions, Studies, FounUati ons U.S. Department of the Treasury, pp. lbbJ78, and Williamson, J. Peter, "Inflation and the Foundation Payout Rate," Foundation News, March-April 1981, Volume Numbe pp. 18-24. Nason, John W., Trustees and the Future of Foundations, New York, Council on Foundations. T979, p. 3. Sugarman, Norman A., "Community Foundations," Research Papers Sponsored by the Commission on Private Philanthropy and Public Needs, Volume 111, Special BeFoundations, Na-v-1 or-aT-- 5 t Ud 1 e s , U.S. Department of TFe Co rporati ons, Treasury, 1977, pp. 1692-1693. Private Foundations, 1982 APPENDIX: HIGHLIGHTS IN FOUNDATION LEGISLATIVE HISTORY Since this study is the first in an annual Statistics of Income (SOI) series designed to track and report on private foundation trends and changes in reporting patterns, it seems appropriate to provide, as background information for future SOI reports on foundation data, a historical review of major private foundation legislation [11 [2]. Foundations, which (as we know them today) had their beginnings around the late 1800's [31, have had their share of proponents and opponents alike throughout their existence. Some question their qualification for tax-exempt status because of their narrow base of support and the advantageous tax treatment given to their usually wealthy donors. Others see foundations as playing a key role in meeting public needs by funding continuing non-profit projects or by supporting innovative or risky undertakings which could not be funded by more conventional sources. Throughout foundation history, Congress has recognized the need for Government regulation and public accountability, yet has maintained that foundation philanthropic activities are deserving of tax exemption. The following historical account summarizes major legislative events affecting private foundations. 1917 Individuals allowed deductions charitable contributions. 1934 Law passed prohibiting tax-exempt -charitable organizations from lobbying. Corporations allowed deductions for charitable contributions. 1943 Passage of the Revenue Act of 1943. Required certain tax-exempt organizations, including foundations, to file annual information returns. s 1947-48 Hearings held by the House Ways and Means and the Senate Interstate and Foreign Commerce Committees on foundation activities. No legislative outcome. 1952-62 taining their findings and recommendations but no legislative action was taken. - House Select Committee to Investigate and Study Educational and Philanthropic Foundations and other Comparable Organizations Which are Exempt from Federal Taxation, Chaired by Rep. Eugene E. Cox. (Established in 1952.) - House Special Committee to Investigate Tax-Exempt Foundations and Comparable Organizations, chaired by Rep. Carroll B. Reece. (Established in 1953.) - House Select Committee on Small Business, Chaired by Rep. Wright Patman. (Establ i shed in 1962; last installment of eight reports issued in 1972.) e 1965 U.S. Treasury Department Report on Private Foundations issued. Treasury concluded that while private foundations play an important role in our society and generally operate free of abuse, serious problems did exist among a small number of them. The study resulted in extensive recommendations for dealing with six categories of major abuses. No immediate legislation was passed. 1969 Passage of Tax Refonn Act of 1969. The 1969 Act for the first time defined private foundations in the Internal Revenue Code, subjected foundations to an excise tax on investment income (to cover the cost of IRS oversight), and imposed a two-tier system of penalty taxes foundations that engage in on 11prohibited acts." Provisions taxes on dealing with penalty prohibited acts included the following: for 1935 e 1950 is Passage of the Revendb Act of 1950. Imposed regulations on foundations regarding unrelated business income, excessive accumulation of income, prohibited activities, and public disclosure of annual information returns. Several Congressional committees established to investigate alleged abusive foundation activities. The committees each issued reports con- - taxes on self-dealing (transactions between a foundation and a disqualified person. E.g., lending money; sale, exchange or leasing of property; transfer of foundation income or assets to disqualified persons). - taxes on undistributed income (the amount required to be distributed in a given tax year for charitable purposes which the foundation fails to pay out by the end of the following tax year). 16 Private Foundations, 1982 - taxes on excess business holdings (amount by which stockholdings or other interest in a business enterprise exceeds the amount of permitted holdings). 1981 - taxes on investments which jeopa rdi ze the carrying out of a foundation's exempt purpose (the lack of ordinary care and prudence in making investment decisions). - taxes on taxable expenditures includes engaging- in nonexempt, political, or legislative activities; and disbursements of funds to other organizations or i ndi vi dual s, without sufficient oversight to ensure the funds are used exclusively for exempt purposes). 1973-74. Hearings on a variety of private issues foundation held by the following Congressional committees, but no legislation enacted. - Subcommittee on -Domestic Finance of the House Committee on Banking and Currency (on compliance of private foundations wi th. provisions of the Tax Reform Act of 1969). - House Ways and Means Committee (on tax treatment of private foundations). - Subcommittee on Foundations of the Senate Finance Committee (1973. hearings on the role of foundations in society and the impact of the provisions of the Tax Reform Act of 1969; 1974 hearings to determine the influence of private foundations on public broadcasting; additional 1974 hearings on the impact of the economy on private foundations and their grant recipients). 1976 Legislation enacted to change the required minimum payout to charity from 6 percent to 5 percent of market value investment assets for accounting periods beginning in 1976. Passage of the Economic Recovery Tax Act of 1981. Allowed individuals who could not itemize their deductions to deduct part of their charitable contributions anyway; provided favorable tax treatment for corporate charitable donations of scientific equipment; and restricted the minimum payout computation base to investment assets, without regard to the amount of the foundation's income for the year. 1983 Hearings held by House Subcommittee on Oversight of the Ways and Means Committee on the impact of the Tax Reform Act of 1969 on ' p ri vate foundations. 1984 Passage of the Tax Reform Act of 1984. Its major private foundation provisions include the following: Limitation on the amount of grant administrative expenses which can be applied toward meeting the minimum payout requirement. The Act also directed the Treasury -Department to- conduct -a study of foundation administrative ex.pens6s. This provision terminates on December 31, 1990. - Waiver 'of the 2-percent excise tax for a new classification called "exempt operating foundations" and reduction in the tax to 1 percent for nonoperating foundations if a 5-year average of their qualifying distributions increases by a like amount. - Extension of the divestiture period for excess business holdings under certain circumstances. - Authority granted to IRS to abate the first-tier penalty tax on prohibited, foundation activities (except self-dealing) when reasonable cause for the violation can be proven. . e 1978 Legislation enacted to change the excise tax on net investment income from 4 percent to 2 percent for domestic foundations.- - Definition of "family members" of a substantial contributor modified to treat as a "disqualified person" only those descendents through the great grandchildren level. Substantial contributor status is terminated if no connection with the foundation can be demonstrated for a 10-year period. 1980 Legislation enacted to simplify IRS reporting requirements placed on private foundations. - Directive issued to the Treasury Department to review the expenditu re re sp ons i bi 1 i ty regulations I Private Foundations, 1982 (requiring oversight of certain organizations to which grants are made) to determine if they are overly burdensome; to extend to 5 years the advance ruling period during which a new organization is treated as a public charity; and to permit donor foundations greater reliance an IRS rulings for making grants to such new organizations. Increase in the deductible portion of an individual's gift to a private foundation from 20 percent to 30 percent of adjusted gross income, except for donations of appreciated property (which remain deductible up to 20 per-cent). Appreciated publicly-traded stock 17 can now be deducted at fair market value, subject to a limitation of not more than 10 percent of all the stock of a given company. REFERENCES (to Appendix) [I] "Philanthropy Goes to Congress," Foundation News, May-June 1983, pp. 12-21. [21 Feller, Nancy, "1984 Tax Reform Act," Non-Profit Organizations: Current Issues and Developments, Practicing Law Institute, Course Ra-n-dbook Series Number 217, December 1984. [31 The Foundation Center, Directory, 8th Edition, p. xiv. The Foundation New-York, T98% 18 Private Foundation Information Returns, 1982 Table I.-Number of Foundations, Total Receipts and Total Deductions, Net Investment Income and Tax, Total Assets, Net Worth, and Distributions, by Type of Foundation and Size of Total Fair Market Value of Assets [money amounts are in thousands of dollars] Total receipts Numbe Size of tot al fair market value of assets of return Number of returns Amount Number of rettims "m (1) (2) (3) (4) (5) All foundations, total ................................. 28,468 27,603 9,126,529 Zero. negative or unreported ............................ $11 under $100, 000 ......................................... $ DO ,000 under $1,000.000 ............................. $1 ,000.000 nder $10,000,000 ......................... $25000000 ........................ $10 ,000.OU $25 .D00. 000 under $50:000:000 ........................ $50 .0D0. 000 under $100,000.DDO ...................... $100,000,001) or more .................................... 1.515 13,237 9,125 3,771 493 162 85 80 Nonoperating foundations, total ............. 25,363 Zero. negative or unreported ........................... $1 under $100 ,000 ...................... ................. $100,000 under $1 , 000 ,000 .............................. $1 ,000 ,000 under $10,000 ,000 ......................... $10,000 ,000 under $25,000,000 ........................ $25,000 ,000 under $50,000,000 ........................ $50,000 ,000 under $100,000,000 ... ................... $100,000,000 or more .................................... 1,515 11,175 8577 3:346 459 143 75 73 1,368 12,6D6 6,906 264,945 9,040 3.771 492 161 85 80 662,390 2.097,182 1.010,618 767,421 1,165,244 3,151,824 24,540 8,077,449 1,368 10,543 - 8,535 3,346 458 142 75 73 6,906 235,993 631,152 1,695.040 '915,955 677,744 1.055,625 2,859, 034 _ Numbw Of raturns 27,645 5,834,328 1.515 12,500 9,D40 3.771 492 161 85 80 Ouafitying contributions, gifts. and grants paid Disbursements for exempt purposes Total deductions 1,515 10,438 8,535 3,346 458 142 75 73 6,721 425,797 490,555 1.228,612 693,288 423.874 487,175 1,504,744 (7) (8) 26,410 5,156,993 6.721 458,142 524.324 1,515.561 746,510 473,535 527,937 1,581.598 24,582 5,260,767 Amount Number of retums * 1.073 11.869 8.914 -6,280 444.940 483,780 3,741 490 159 84 80 1,431,404 664,048 406,261 474,789 1,245,491 23,599 4,670,649 - Net income (less; deficit) Amount Number r'b'of Amount (9) (10) (11) - 23,306 4,429,979 .111, 9,659 8,577 3.419 462 ISO 78 77 -5,621 406,020 455,477 1.142,658 585,549 339,597 413,269 1,081.789 22,044 4,364,340 -5,621 401,734 447.407 27,108 3,292,200 * 1.073 12,50() 8,956 3,761 491 161 85 80 -6,280 414,887 456,935 1,174.197 619,961 362,808 446,331 1,189,250 *884 8,923 81198 3,305 449 139 74 73 410,608 1,070,826 *1,073 10,585 8,451 3,336 457 142 75 73 2,811 486,344 1,262 - -189,805 140,596 466,428 222,668 253.870 568,450 1,354,290 3,105 3,063 1,049,080 3,063 573,561 65,639 2,916 475,619 - - - - - - - - - - - $50, 000,000 under $100,000,000 ...................... $100,000,000 or more .................................... 2,062 547 425 34 119 0 7 2,062 505 425 34 9 1 10 7 28,952 31,238 402,141 94,662 89677 109:619 292,791 2,062 505 425 34 9 1 10 7 32,345 33.769 286,949 53,222 49,660 40,762 76.854 1.915 421 405 34 19 10 7 30,053 26.845 257,207 "'088 43,453 28,458 56,240 114 13 11 4 4 24,501 12,869 2,291 2,661 10,962 1.915 505 425 34 19 10 7 -3,393 -2,531 115,193 41,440 40,017 68,857 215,937 Grantmaking foundations, total .............. 23,306 Operating foundations, total ................... Zero. negative or unreported ........................... $1 under $100,000 ........................................ $lDO, 000 under $1,000,000 ............................. $1 , 000 ,000 under $10,000,000 ......................... $10, 000,000 under $25.000,000 ........................ $25. 000,000 under $50,000,000 ........................ Zero, negative or unreported .............. ; ....... $1 under $100 ,000 ......................................... $100,000 under $1 . 000,000 .............................. $10 , 000,000 .......................... $1 ,000 ,000 under $10,000 ,000 under $25,000,000 $25,000 .000 under $50,000,000 .............. * ... -* ... ....................... ***....... $50,000 ,000 under $100,000,DOO............... $100,000,000 or more ..................................... 9,659 8,577 3,419 462 150 78 77 Grantmaking-nonoperating foundations, total ........................ E: ............ 22,044 23,159 8,441,654 .884 9,512 8,577 3,419 462 ISO 78 77 220.764 632,560 1,764,636 937,335 702,732 1,116.349 3,062,314 21-1897 7,982,283 .(M $100,000,000 or more ................................... 8 ,923 198 0 ': 33 5 "g 139 74 73 8,775 8198 3305 449 139 74 73 *5.064 216 .694 607,200 1,686,370 894,052 670,383 1,043.484 2,859,034 Nongrantmakin nonoperating foundations, Io -tal .................................. 3,318 2,643 95,167 ."I" - 1,1142 19,299 '23,951 -8,670 21,903 7,361 12,141 Zero, negative or unreported .......................... $1 under $100,000 ....................................... $1 DO ,000 , under $1 ,000,000 ............................ $1 ,000, 000 under $10 ,000,000 ........................ $10 ,000, 000 under $25,000 ,000 ....................... $25 .000, 000 under $50,000 ,000 ....................... $50 ,000, 000 under V00,000,000 ................ .... Zero, negative or unreported ........................... $1 under $100.000 ........................................ $100.000 under $1,000,000 ............................. $1 ,000,000 under $10 ,000 ,000 ......................... $10,000,000 under $25,000,000 ........................ $25,000.000 under $50,000,000 ........................ $50,000.000 under $100,000,000 ...................... $100,000,000 or more .................................... . Foomotes at end of table: 2,252 10 4 1,768 *337 *41 9 3 1 23,306 5,398,386 9,659 8,577 3,419 462 150 78 77 -5,901 . 413,997 511,847 1,269,654 698,857 443,303 499,798 1.555,030 22,044 5,197,952 *884 8 ,923 8,198 3,305 449 139 74 73 -5,901 409,157 485,278 1.220,806 672,619 416,495 482,954 1,504,744 2,538 62,815 1,515 *337 *41 9 3 1 16,641 -5, 277 -7.807 20,668 7,380 4,222 23,306 4,825,580 .1w 9,659 8,577 3,419 462 150 78 77 *5.900 409,736 479,618 1,215,777 631.492 385.641 461,036 1.236,380 22,044 -4,640,110 23,306 4,429,979 *884 9.659 8,577 3,419 462 150 78 77 -5,621 406,020 455,477 1,142,658 585.549 339,597 413,269 1,081,789 22,044 4,364,340 7 23,063 3,043,267 9,659 8,493 3,409 461 150 78 77 837 -193,233 120.712 494,882 238,478 259,429 616,551 1.507,284 21,802 2,784,329 8,923 8,198 3,305 449 139 74 73 -5,900 405,415 454,917 1,168,107 608,343 361,847 "(5,331 1,189,250 8,923 8,198 3,305 449 139 74 73 401,734 447,407 1,118,157 572,680 337.306 410,608 1,070,826 8,923 8,114 3,294 448 139 74 73 837 -192,463 121,922 465,565 221,433 253,889 560.531 1,354,290 1,554 30,540 - - 2,390 32,352 1 ,663 *337 -1,022 2, 658 18,674 9 3 1 1,234 -19 7 ,919 - 1,031 *295 *31 7 1 - -9 ,472 -2,018 -6,090 11,618 961 - I 24,192 2,816,681 -1,073 9,954 8,493 3.336 456 140 74 73 1,118,157 572,680 337,306 -193,198 138,065 581,621 264.108 293,886 637,306 1.570,226 i Private Foundation Information Returns, 1982 Table I.-Number of Foundations, Total Receipts and Total Deductions, Net Investment Income and Tax, Total Assets, Net Worth, and Distributions, by Type of Foundation and Size of Total Fair Market Value of Assets - Continued 19 (Money amounts are in thousands of dollars) Net,mvestmemt noome Net income Size of total fair market value of assets N u mb er of returns Amount (t 3) 16,044 4,Y7-4 ,832 (12) All foundations, total ................................. Zero, negative or unreported ............................ $1 under $100,000 ........................................ $10o,000 under $1,000,000 ............................. $1.000,ODO under $10,000.000 ......................... $10,000,000 under $25,0D0.000 ........................ $25.000.000 under $50,000,000 ........................ $50,000,000 under $100,000,000 ...................... $100,DOO,000 or more .................................... Nonoperating foundations, total ............ Zero, negative or unreported ........................... $1 under $100.000 ........................................ $100,000 under $1,000,000 ............................. $1.000.000 under $10.000,000 ......................... $10.000,000 under $25,000,000 ........................ $25,000,000 under $50,000,000 ........................ $50,000,000 under $100,000.000 ...................... $100,000,000 or more .................................... Operating foundations, total ................... Zero, negative or unreported ........................... $1 under $100,000 ........................................ $100,000 under $1,000,000 ............................. $1,000,000 under $10,000,1300 ......................... $10,000,000 under $25,000,000 ........................ $25,000,000 under $50,000.000 ........................ $50.000,ODO under $100,000,000 ...................... $100,000,000 or more .................................... Grantmaking foundations, total .............. Zero, negative or unreported ........................... $1 under $100,000 ........................................ $100,000 under $1,000,000 ............................. $1,000.000 under $10,000.000 ......................... $10,000,000 under $25,000.000 ........................ $25,000.000 under $50,000,000 ........................ $50,000.000 under $100,000,000 ...................... $100,000.000 or more .................................... Grantmaking-nonoperating foundations, total .................................. Zero, negative or unreported ........................... $1 under $100,000 ........................................ $100.000 under $1,000,000 ............................. $1,000,000 under $10.000,000 ......................... $10,000,000 under S25,000,000 ........................ $25,000,000 under $50,000,000 ........................ $50,000,000 under $100,000,000 ...................... $100,000,000 or more .................................... Nongrantmaking-nonoperating foundations, total .................................. Zero, negative or unreported ........................... $1 under $100,000 ........................................ $100,000 under $1,000,000 ............................. $1,000,000 under $10,000,000 ......................... $10,000,000 under $25,000,000 ........................ $25,DOO,000 under $50,000,000 ........................ $50.000,000 under $100,000,000 ...................... $100.000,DDO or more .................................... Footnotes at end of table. 6,376 6,041 2,547 341 123 71 61 -1,048 41.734 246,205 775,798 373.r.46 366.377 674,890 1,795,134 14,714 3,773,644 .411 5,640 5.788 2,266 308 109 62 56 -1,048 37,928 242,921 655,270 331,917 322,544 605,529 1,576,487 1,330 - Number of returns Amount (14) (15) 25,442 5,590,700 9,954 8,788 3,699 488 160 84 80 44,233 308.285 1,095,371 657,514 544,544 578,577 2.361,743 21,496 5,090,322 39,394 296,574 1,002,737 619,800 479,874 526,118 2,125,392 1,947 500,378 -1,031 -4,839 463 11,711 384 92,634 33 37.714 19 64.670 9 52,459 7 236,352 21,052 5,357,394 12,727 3,733,303 * 147 4.314 34,258 5.494 224,003 2,246 653,352 302 326,017 107 321,550 61 597,610 56 1,576,487 19,949 5,064,645 7,744 8,030 3,294 448 138 74 73 37,418 286,004 999,689 613,287 477,718 525,118 2.125,392 1,987 1,547 25,677 *41 5 -1,975 '10,570 *3,048 6.513 2,156 1,000 .1 '3 .295 '21 6 2 1 - *18.919 -1.918 5.900 993 7,919 - 8,334 8.409 3.399 460 149 78 77 .1 1 178 .295 *21 7 3 1 41,071 295,330 1,019.060 632,769 502,684 555,274 2,311,186 Excise tax on net investment income Num ber o f returns Amount (16) (17) Domestic onganizations Total amount 5,513 11,79_4,i_67~ Foreign organizations Number of returns Amount Number of returns Amount (18) (19) (20) (21) (22) :F1 1,440 23,385 110,651 54 789 .9 - 40 89 112 502 - .9 -1,885 65.742 244,538 171,373 141.992 202.586 926,549 881 6,187 21,907 13,187 10,876 11,628 46,767 9,954 8,746 3.699 482 155 82 78 881 6,141 21,907 13,147 10,787 11,515 46,265 '42 5 4 2 1 4,827 1,561,047 102,138 *737 2,210 2,02 32,,1 102 58 62 21,440 101,349 54 789 - .9 .9 63,278 217,863 163,075 112,371 175,756 828,606 8,923 8.283 3,315 450 136 73 72 786 5,907 20,054 12,376 9,494 10,466 42,257 '42 5 - 2,084 1,803 302 91 50 56 786 5,953 20,054 12,416 9,583 10,578 42,759 685 *295 193,618 - 9,302 '94 234 1,853 771 1,293 1,049 4.008 107,459 T) 816 5.928 20.381 12,682 10,034 11,142 46.475 1,945 1,031 463 384 32 19 9 6 21,001 *147 8.334 8,367 3,399 456 146 77 76 9,302 234 1.853 771 1,293 1.049 4.008 106,739 T) 818 5.882 20,381 12,661 9,955 11,069 45,973 101,590 T) 747 5,741 19,993 12,276 9,535 10,539 42,759 19,899 *147 7,744 7,988 3,294 445 135 73 72 548 .8 *39 1,542 140 48 40 5 1 - 8.923 8,325 3,315 455 141 75 73 501,188 -3,805 *3.284 280 120,528 32 41,729 14 43,834 9 69,361 218,647 5 13,309 4,007,419 '26 4.609 35,374 5,704 227,202 684,919 2,298 314 343,168 113 330,907 65 653,631 58 1,732,192 40,341 -1,022 Net capital gain -2,464 218 26,675 21 8,298 11 29,621 8 26,830 6 97,943 6,084 1,665,730 *737 -1,885 1,999 63,992 1,834 226,095 302 163,033 98 118,628 54 194,096 60 898.000 4,654 1,557,408 1,915 1,803 297 91 50 56 61,541 217,863 161.173 112.371 175,756 828,606 * 173 *166 5 - * 3,639 -1,737 1,902 - 2 1 40 89 112 502 - - *49 - *720 - 3 2 1 1 21 79 72 502 100,870 T) 747 5,696 19,993 12.255 9.455 10,466 42,257 *49 - *720 - 479 .8 .5 121 38 - 2 3 2 1 1 - 21 79 72 502 *69 - -1,178 19 10 40 20 Private Foundation Information Returns, 1982 Table 1.-Number of Foundations, Total Receipts and Total Deductions, Net Investment Income and Tax, Total Assets, Net Worth, and Distributions, by Type of Foundation and Size of Total Fair Market Value of Assets- Continued [Money amounts are in thousands of dollars] !nvewo-ts rn sewities (book vabie) Total assets (book value) Size of total fair market vak* of assets All foundations, total .............................. Zero. negative or unreported ......................... $1 under $100,000 ..................................... $100.000 under $1,000,000 .......................... $1,0D0.000 under $10,000,000 ...................... $10,000,DDO under $25,DDO.000 .................... $25.000,DDO under $50,0D0,000 .................... $50.ODO,000 under $1D0,000,000 .... .............. $100,000,000 or more ................................. I-estmerrts in som'sties air market valm) Total ~ts (fair market valtie) Not worth Number rebm~of Amount Numbw f retumso Amount N.mber Of rettnns Amotint Number f retumso Amotmt Number of rettam Ammmt (23) (24) (25) (26) (27) (28) (29) (30) (31) (32) 27,584 48,227,043 13.237 9.125 3.771 493 162 85 80 . 408901 2 981:00 10.096.084 5,967,814 4,751,234 4,639,926 19.375,972 16,815 37,418,07i '42 5.535 7.104 3,348 470 154 83 80 -3,814 155.798 1,770.325 6,579.417 4,466,902 3.534.173 3.652.311 17,255,330 26,953 62,886,606 17,025 49,822,624 - - - - 13,237 9.125 3.771 493 162 85 so 416.696 3,262.919 11.981.973 7.543,920 5.816.852 6,035,403 27,828,a43 5.935 6.967 3,347 461 155 at 80 176,924 1.975.788 8.080,023 5,571,440 4,445.653 4.657,527 24,915.268 2T5-84 45,633,124 13.237 9,125 3,771 493 162 85 80 184.547 2,920,886 9,658,355 5.749.762 4,527.953 4.258.569 18,326,964 Nonoperating foundations, total .......... 24,479 42,542,775 15,461 33,846,950 Zero, negative or unreported ........................ $1 under $100,000 ..................................... $100,0DO under $1,000,000 .......................... $1,000,000 under $10,000,000 ...................... $10.000,000 under $25.000,000 .................... $25,000.000 under $50,000,000 .................... $50.000.000 under $100,000,000 ................... $100,000.000 or more ................................. - - - 4,945 6.725 3,026 441 136 74 73 -3,814 133,425 1,711,118 5,980,040 . 4,246,382 3,157,498 3,311,863 .15,302,810 - 11,175 8,577 3,34 45 143 75 73 -6,107 336,980 2,806,744 8,821,517 5,517,225 4,215,273 4,101,952 16,736,978 11,175 8,577 3,346 459 143 75 73 344,575 3,071,767 10,527,069 7,018,752 5.138.036 5,337,882 24,779.239 5,345 6.588 3,025 430 137 72 73 153,985 1,911,122 7,361,064 5,313,359 3,961,093 4,228,604 22.938,726 11,175 8,577 3.346 459 143 75 73 129.092 2,755,104 8,672,335 5,306,778 4,018,709 3,796.866 15.809.002 Operating foundations, total ................ 3o'105 5,684,268 1,354 3,571,121 3,105 6,669,286 1,355 3,954,671 3,105 5,139,150 Zero, negative or unreported ........................ $1 under $100,000 ..................................... $100,000 under $1,000,0D0 .......................... $1,000.000 under $10,000,000 ...................... $10,000,000 under S25,000,000 .................... $25,000,000 under $50,000,000 .................... $50,000,000 under $100,000.000 ................... $100,000,000 or more ............................. - - - - - - - - - - 2.06 54 42 3 19 10 7 71.922 174,262 1,274.567 450,589 535,961 . 537.974 2,638,993 322 29 18 9 7 '22,373 '59,207 599.377 220,520 376,675 340,448 1,952.521 2.062 547 425 34 19 10 7 72.120 191,152 1,454,904 525,168 678,816 697,521 3,049,604 322 30 18 9 7 22.940 64,667 718,959 258,081 484,560 428,923 1,976,542 2,062 547 42 34 19 10 7 55,455 165,782 986,020 442,983 509,245 461,703 2,517,963 Grantmaking foundations, total ........... Zero, negative or unreported ......................... $1 under $100,0DO ................................ $100,000 under $1,000,ODO ........................... -$1.000,000 under $10,DOO,000 ....................... $10,000,000 under $25,ODO,000 ..................... $25,000,000 under $50,000.000 ..................... $50,000,000 under $100,000,000 .................... $100,000,000 or more .................................. Grantmakingznon'operating foundations, total ................................ 22,864 45,462,726 9.659 8,5 7 3,419 462 150 78 77 343,928 2,818,775 9,054,558 5,546,119 4,411,650 4,290,338 18,996,782 21,602 41,946,501 15,679 36,114,133 23,847 56,217,321 22,422 59,429,355 15,670 45,867,953 15,825 48,248,839 - - - - - - 5.051 6.809 3,078 443 145 77 77 140.369 1,687,649 6,062,852 4,274,580 3,368,556 3,507,336 17,072,790 9,659 8,577 3,419 462 150 78 77 355,844 3,073,946 10,754,371 7,058,159 5,385,686 5,578,857 27,222,492 5,345 6,672 3,077 433 145 75 77 164,575 1.884,883 7,449,804 5,337,881 4,208,735 4.468,426 24.734,534 14,704 33,642,880 21,160 55,535,910 14,848 45,618,008 24,479 40,1493,974 22,864 43,283,312 9,659 8,577 3,419 462 150 78 77 135.903 2.768,229 8.779.479 5.410,414 4,230,565 3,979,898 17,978,268 21,602 40,024,466 Zero, negative or unreported ........................ $1 under $100,000 ..................................... $100,000 under $1,000,000 .......................... $1,000,000 under $10,000,000 ...................... $10.000,000 under $25.000,000 .................... $25,000,000 under $50.000,000 .................... $50,000,000 under $100,000,000 ................... $100,000,000 or more ................................. 8,923 8,198 3,305 449 139 74 73 305,527 2,688,326 8,728,573 5,355,018 4,102,936 4,028,566 16,736,978 4,461 6,514 3,015 433 134 73 73 117,997 1.646,541 5.976,347 4,175,348 3,131,213 3.292,625 15,302,810 8,923 8,198 3,305 "9 139 74 73 316.876 2,933,759 10,407,120 6,844,371 4,990,047 5,264,496 24,779.239 4,756 6,378 3,014 422 134 71 73 141,636 1.842.527 7,357,444 5,229,121 3,899,189 4.209,366 22,938.726 8,923 8,198 3,305 449 139 74 73 97,663 2,645.982 8,587,101 5,223,688 3~936,992 3,723,481 15,809,002 Nongrantmaking-nonoperating foundations, total ................................ 2,876 596,274 758 204,070 2,687 681,411 822 249,945 2,876 469,508 Zero. negative or unreported ....................... $1 under $100,000 ..................................... $100,GOO under $1,000,000 .......................... $1.000,000 under $10,000,000 .................. $10,000,000 under $25,000,000 .................... $26,000,000 under $50,000,000 .................... $50,000,000 under $100,000,000 ................... $JDO,000,000 or more ................................. 189 2,252 *379 *41 10 4 1 - -5,530 31,453 -118,418 *92,944 162.207 112,338 73,386 - - - - - 27,699 : 1138 DOB 19:949 174.381 147,989 73,386 - -589 :12 349 68:595 8 3 1 - 84,238 61.904 19,238 - 252 379 *41 10 4 1 - 31,429 109,123 *85,234 83,090 81,717 73,386 - Footnotes at and of table. *484 *211 '15,428 -64,577 8 2 1 - 71,034 26,285 19,238 - 1 514 79 141 Private Foundation Information Returns, 1982 Table I.-Number of Foundations, Total Receipts and Total Deductions, Net Investment Income and Tax, Total Assets, Net Worth, and Distributions, by Type of Foundation and Size of Total Fair Market Value of Assets- Continued 21 [money amounts are in thousands of dollars) Size of total fair market value of assets All foundations, total ............................. . Zero, negative or unreported ......................... . $1 under $100,000 ...................................... . $100.000 under $1.000.000 ............................ $1,000,000 under $10,000,000 ........................ $10.000,000 under $25,000.000 ..................... $25,000,000 under $50,000,000 ..................... $50,000,000 under $100,000,000 .................... $100,000,000 or more .................................. Nonoperating foundations, total .......... Zero, negative or unreported ......................... $1 under $100,000 ...................................... $100,000 under $1,000,000 ........................... $1,000,000 under $10,000,000 ....................... $10,000,000 under $25,000,000 ..................... $25,000.000 under $50,000,000 ..................... $50,000,000 under $100,000,000 .................... $100.000,000 or more .................................. Operating foundations, total ................ Zero, negative or unreported ......................... $1 under $100,000 ...................................... $100,000 under $1,000,000 ........................... $1,000,000 under $10,000,000 ....................... $10.000,000 under $25.000,000 ..................... $25,000,000 under $50,000,000 ..................... $50,000,000 under $100,000,000 .................... $100,000,000 or more .................................. Grantmaking foundations, total ........... Zero, negative or unreported ......................... $1 under $100,000 ......... ............................ $100,000 under $1,000,000 ........................... $1,000,000 under $10,000,000 ....................... $10.000,000 under $25,000,000 ..................... $25.000,000 under $50,000,000 ..................... $50,000,000 under $100,000,000.................... $100,000,000 or more .................................. Grantmaking-nonoperating foundations, total ................................ Zero, negative or unreported ......................... $1 under $100,000 ...................................... $100,000 under $1,000,000 ........................... $1,000,000 under $10,000,000 ....................... $10,000,000 under $25,000,000 ..................... $25,000,000 under $50,000,000 ..................... $50,000,000 under $100,000,000 .................... $100,000,000 or more .................................. Nongrantmaking-nonoperating fo u nd a tions, to tal ................................ Zero, negative or unreported ......................... $1 under $100,000 ...................................... $100,000 under $1,000,000 ...................... .... $1.000,000 under $10,000,000 .................. .... $10,000,000 under $25,000,000 ................ .... $25,000,000 under $50,000,000 ................ .... $50,000,000 under $100,000,000 ............... .... $100,000,000 or more ............................. .... Minimum investment return Number of Amount returns (33) (34) 24,788 2,658,490 Distributable amount Number f Amount eturnso (35) (36) 23,278 2,397,587 787 10,291 24,092 8.451 134791 3.315 460:36 453 291,771 138 212,690 74 222,042 73 1,051,046 23,278 2,397,587 Number of returns (37) 26,429 * 1,073 11,869 8, 914 3,761 489 159 84 80 Amount Undis buted inommo'f~cr 1982 Number Amoun t raturnsof (39) j46)_ 6,52~ -663,503 2.652 4,724 2.189 29,35C 1,354 135.379 19 86,153 5 59,800 3 71.428 4 276,668 6,52 663,503 2,65 4,724 2,189 29,35C 1 , 354 135 ,379 19C 86 ,153 59 59, 800 35 71,428 40 276,668 N/A N/A N/A NIA N/A N/A NIA N/A NIA N/A NIA N/A N/A N/A N/A N/A N/A N/A 5,754 658,464 2,062 4,303 2,021 25,964 1,344 135, 246 194 85,611 58 59,244 35 71,428 40 276.668 200,206 -2,164 5,438 35,589 13,144 22,707 19,695 101.450 2,575,722 10,291 8,451 3,315 453 138 74 73 N/A N/A N/A N/A NIA N/A N/A N/A N/A 21934 24,092 134, 791 460,368 291,771 212,690 222,042 1,051,046 N/A NIA NIA N/A N/A N/A N/A N/A N/A 2,382,725 23,555 -1,073 9,954 8 ,451 3,336 455 140 74 73 2,874 1,915 463 425 34 19 10 7 23,263 (38) 5,529,765 -6.495 "9,158 48290 97 '78 6 1,4 6 429,72 508,213 1.474,322 4,872,48 ; 6,495 4 5,276 455, 6 90 1 , 204, 782 633,950 364,203 457,964 1.334,123 657,282 33,882 27,217 277,096 63.115 65.524 50,248 140,199 5,113,738 9,217 8 ,451 3.368 455 148 78 77 21,033 137 .215 469,337 301,811 231,308 237.124 1,177,856 8,775 8, 114 3,284 448 137 74 73 22,936 129,224 457,056 289,660 210.723 222,042 1,051,046 9.65G 8, 535 3,419 461 ISO 78 77 410,125 477 ,368 1,251,174 648,450 389,429 476,720 1.454,571 21,359 '442 8,775 8,114 3,294 448 138 74 73 2,443,838 21,347 2,382o725 22,001 4,830,312 5,754 19,403 133,278 463,091 296,837 217,859 225,881 1,087,450 8,775 8,114 3,284 448 137 74 73 22,936 129,224 457,056 289.660 210,723 222,042 1.051,046 8.923 8,156 3,305 448 139 74 73 405,803 452,518 1,198,603 612,609 362,792 457,964 1,334,123 2,062 2.021 1,344 194 58 35 40 1,636 14,446 1,931 '42 1,515 14,862 1,554 42,171 1,155 -5,567 -3,312 2,111 1,967 - -1,031 -9,472 7 1 - 21.341 1 , 412 11,027 8,872 3.606 479 156 83 80 22,995 22,770 143 .612 502,053 312,213 242,572 245,575 1,188.900 2,458,286 9,996 8 ,451 3,325 453 139 74 73 1,793 -1,031 421 281 26 17 9 7 22,235 20,586 138 , 174 466,465 299.069 219,865 225,881 1,087,450 -1,221 5 1 - -4,895 -3,373 2,232 2,006 - N/A - Not applicable. 7stimal:nshould be used 01h caution because of the small number of sample returns on Len th $500. NOTE: Detail may not add to total because of rounding. 5 1 - hich it is based. Excess distributions carrymerto 1983 Number Amount retumsof (41) (42) 15,585 4,857,481 -6, 399 6,713 1,463,538 6,009 852,021 1 ,857 1 .273, 912 223 494, 538 8C 211 ,911 40 245,530 31 309,632 15,585 4,857,481 6,713 6,009 1 , 857 223 80 40 31 N/A N/A N/A N/A N/A N/A N/A N/A N/A 14,918 6,229 5,883 1 .846 219 80 40 31 1,463,538 852,021 1 .273, 9 1 2 494, 538 211 , 911 245, 530 309,632 N/A N/A N/A N/A N/A N/A N/A N/A N/A 4,800,748 -5, 340 1,458,272 845,841 1 , 269, 177 455,046 211 ,911 245,530 309,632 658,464 14,918 4,800,748 4,303 25,964 135,246 85,611 59,244 71,428 276,668 6 ,229 5 ,883 1 ,846 219 80 40 31 1 ,458 ,272 845 ,841 1 ,269, 177 455, 046 211 , 911 245, 530 309,632 771 - 5,039 - 667 168 .3,386 2 1 542 556 56,733 -1 ,059 -5,266 -6, 180 735 *49493 4 Private Foundation Information Returns, 1982 22 Table 2.-All Foundations: Balance Sheets and Income Statements, by Size of Total Book Value of Assets [Money amounts are in thousands of dollars] Itern Total (1) Number of returns ............................................. Total assets (Book value) ..... .......................... 28,468 48,227,043 Cash, total ............................................................ Non-intemt bearing accounts ................................ Savings and temporary cash investments ................. Accounts receivable, net .......................................... Pledges receivable, net ............................................ Grants receivable .................................................... Receivables due from disqualified persons .................. Other notes and loans receivable, not ........................ Inventories ............................................................. Prepaid expenses and deferred charges ..................... Investments, total ................................................... Securities ........................................................... Land, buildings, arid equipment (Less accumulated depreciation) .................................................... Mortgage loans ................................................... Other investments ............................................... Chadtable-purpose land, buildings, and equipment (Low accumulated depreciation) ..................................... Other assets .......................................................... 4,643,217 490,462 4,152.755 247.814 Asse Under $IW.000 u=.d $"00.000 under $1.000.0DO (2) (3) (4) *884 - Under $10,000,000 (5) 9,683 3,567 3,324,798 11,153,659 _(6) $25,000,000 S513.000.0w u,.der $50,000,ooo under $100.000.000 (7) (B) $100,000,000 or more (9) 371 5,848,437 136 4,761,337 74 5,154,433 53 17,592,715 642.341 44,253 598.088 43.898 10,000 1,877 23,603 116,985 12,332 13.936 4,640,174 4,271,492 424,159 20,258 403.901 14,821 2 21 1 39.931 2.853 2,477 4,000,886 3,513,521 400,596 23.482 377.114 34,188 63.727 279 627 4,357.884 4,123,579 654,083 26,535 627.548 94.050 2,763 15,006 20.812 1.076 2.532 16,329,176 15,838,658 43,003 60,609 560,221 33,909 23,287 40,290,739 37,418,071 2,344,450 1,963.647 1.543.708 163,021 1,380,687 45.905 -1,725 '35,IB4 '12,895 M,746 10.614 3.047 8.442.056 7,564,220 733.440 392.490 1,746,738 -3,827 -9,006 '20.326 83.457 '17.138 280,208 183,039 100.333 594,464 130.591 56,877 181,214 145,478 38,822 303.065 31.688 35,287 167,331 155.361 135.027 200,131 1,125.326 1.1154.067 '21,610 9,807 63,627 34,742 478,620 311,159 185.961 157,330 133,435 142,751 106,613 190,520 135,460 337,757 Total liabilities .................................................... 2,593,918 224,373 69,152 449,373 243,807 288,827 305,975 1,012,412 Accounts payable and accrued expenses .................... Grants payable ....................................................... Support and revenue held for future periods ................ Loans from officers, directors. trustees, etc. ................ Mortgages and other notes payable ........................... Other liabilities ....................................................... 423.918 1,264,317 73,222 12,191 *196.053 13,468 -11,221 -1,131 '14,997 .1.109 -15,581 23,965 19,480 73,343 11.584 2.160 55,819 81,421 101,648 78,229 11,425 80,624 16,901 28,306 164,644 7,506 1,169 76,667 27,682 200,952 656,852 - 418,791 407,191 47,871 83.974 '38,900 -2,041 160,381 116,204 Net worth ............................................................ Total receipts .................................................... 45,633,125 9,126,529 167,290 267,211 3,255,646 873,963 10,704,286 2,076,409 5,604,630 1,068,363 4,472,511 925,567 4,848,458 1,157,087 16,580,304 2,756,916 Contributions, gifts and grants received ....................... Membership dues and assessments ........................... Interest on savings and temporary cash investments ..... DWridends and interest from securities ........................ Gross rents ........................................................... Net gain (or loss) from sale of assets ........................ Gross profit from business activities ........................... Other income ......................................................... 2.679,359 24,482 799,713 2.970,206 181,971 1,783,651 113,222 573,924 '935 .58 220.893 *494 27,096 15,168 1,826 456,347 -4,323 85,901 191,479 31,138 56.517 -10,713 37,544 648,559 13,583 250.788 655,296 60,233 301,431 79,415 67,105 342,829 5,893 117,118 382,674 27.316 145.103 16,664 30,765 236,746 132 103,443 347,350 29,413 132,069 1.201 75,214 565,056 73,261 294,187 11.995 178,821 253 33,513 207,995 142,085 1,084,051 21,101 968.751 4,975 327,957 Total deductions ................................................ 5,834,328 -1,411 459,720 717,455 1,489,615 769,213 634,432 415,888 1,346,594 Contributions, gifts. and grants paid ........................... Compensation of officers ... ...................................... Other salaries and wages ......................................... Pension plans. employee benefits .............................. Investment, legal and other professional services ......... Interest ................................................................. Taxes ................................................................... Depreciation and depletion ....................................... Occupancy ............................................................ Other expenses ...................................................... 4.477.761 105.365 254,176 50,572 144,007 35,859 177.208 51,080 33,411 504,889 417,074 '767 -8 3.987 584,416 8,272 35,243 -5,481 13,038 1,334 9,086 4,111 598,934 15,587 35,395 6,437 18,793 6,997 25,794 8,118 3,781 49,377 4W766 10,798 19,595 4,758 14,549 2,757 32,574 9,795 2,887 47,953 304,541 10.514 ' 20,771 5,342 13,046 1 7,648 19,233 4,948 3,343 26,502 981,129 23,119 52.290 17,730 34,638 2,876 49,501 4,418 8,727 172,165 Net Income (less deficit) ................................. 3,292,200 Nei income ........................................................... Deficit ................................................................... 4,274.832 982,631 Total assets (fair market value) ..................... Beginning of year assets (book value) total .............................................................. Selected beginning of year assets: ~nvestmen t nts in securities ....................................... river; me t-purpose land, buildings, and equipment (Less accumulated depreciation) ........................... -1,013 816,874 168,370 648,504 3,915 -3,125 -3,158 tinder S25.000.000 161,456 44,544 116,913 '11,036 -7.730 -3.911 176,114 142,955 Selected fair market value assets: Cash, total ......................................................... Investments in securities ....................................... Investment-purpose land. buildings. and equipment (Loss accumulated depreciation) .......................... Charitable-purpose land, buildings and equipment (Loss accumulated depreciation) .......................... - 13,700 391,663 Size of total book value of assets $10.000.000 $1.000,000 46,110 -6,755 cm 28,587 126,020 53.103 1,101.782 36.305 90,826 10.816 45.951 14,096 40,251 18,062 9,380 122,145 --397 -192,510 156,508 586,794 299,150 291,135 741,199 1,410,323 *398 41,920 234,430 296,080 139,573 772,941 186,147 402,368 103,218 362,806 71.671 778,688 37.489 1,620,028 209,706 62,886,606 409,055 3,839,783 13,891,391 8,052,683 6,949,015 6,800,151 22,9449528 4.597,266 49,822,624 160.188 173,432 808,172 2,342,702 1,530,035 9,600,908 638,609 6,174,613 400,436 5,464,150 406,378 5,329,804 653,449 20.737,016 1,512,375 -3,827 108,412 513,696 262.340 208,233 86,411 329,455 1,491,368 '21,167 119.963 583,085 244,341 247,562 126,051 149.199 -1,118 '4 ~ '56 -4 - - 769 -1,627 -1,923 33,415 T) - 43,181,895 *398 578,248 3,139,067 10,225,418 5,448,507 4,305,161 4,303,934 15,181,162 31,673,360 - 142,686 1,948,726 6.838,747 3,998,511 3,135,425 3,239,446 12,369,819 -7.355 81,291 167,487 142,090 137,6S'l 25,45~ 150,726 712,05`1 1 *Estimt:nshould be used with caution because of the small number of Sample returns on which it is based. 'Less th $500. NOTE: Detail may not add to total because of rounding. I Private Foundation Information Returns, 1982 Table 3.-All Foundations: Balance Sheets and Income Statements, by Size of Total Fair Market Value of Assets 23 [Money amounts are in thousands of dollars] Size of total fair market value of assets Item (3) $100,000 under $1,000,DDO (4) Number of returns ............................................. 28,468 Total assets (Book value) ................................ 48,227,043 1,515 -6,107 f3,F37 _ _ 408,901 9,12 2,981,006 3,771 10,096,084 Cash, total ............................................................. Non-interest bearing accounts ................................ Savings and temporary cash investments ................. Accounts receivable, net .......................................... Pledges receivable, not ............................................ Grants receivable .................................................... Receivables due from disqualified persons .................. Other notes and loans receivable, not ........................ Inventori a ............................................................. Prepaid expenses and defamed charges ..................... Investments, total ................................................... Securities ........................................................... Land, buildings, and equipment (Loss accumulated depreciation) .................................................... Mortgage loans ................................................... Other investments ............................................... Charitable-purpose land, buildings and equipment (Less accumulated depreciation) ..................................... Other assets .......................................................... 4.643,217 490,462 4,15Z755 247,814 14,853 43.003 60,609 560,221 33.909 23,287 40,290,739 37,418,071 -2,218 -2,031 *187 - 161,414 43,745 117,669 11.036 -7,730 726,42 134,53 591,885 2,883 -3,125 -1,376 46,110 -6,755 -3,814 -3,814 190,967 155,798 2,111,743 1,770,325 1,528,103 187,276 1,340.827 37.616 -1,725 '38,341 -12,895 268,493 10,623 3,337 7,441,897 6,579,417 733,440 392,490 1.746.738 - -3,827 77,984 '17,070 246.363 170,751 100,167 591,562 '24.037 9,807 60,841 21.734 446,181 306,872 181,203 161,173 139,197 95,554 108,836 111.269 164,955 477,658 Total liabilities .................................................... 2,593,918 *20 224,354 60,120 437,728 218,052 223,281 Accounts payable and accrued expenses .................... Grants payable ....................................................... Support and revenue held for future periods................ Loans from officers, directors, trustees, etc . ................ Mortgages and other notes payable ........................... Other liabilities ....................................................... 423,918 1,264,317 73,222 6.479 418,791 407,191 -12,172 196.053 - 9,031 -11,221 18,578 69,532 17.4D6 2,160 50.540 59,837 18,611 83,261 5,603 80,904 34,903 381,357 1,049,008 Net worth ............................................................ Total receipts ..................................................... 459633,125 9,126,629 Contributions, gifts and grants received ....................... Membership dues and assessments ........................... Interest on savings and temporary cash investments ..... Dividends and interest from securities ........................ Gross rents ........................................................... Net gain (or loss) from sale of assets ........................ Gross profit from business activities ........................... Other income ......................................................... 5,749,762 1,010,618 4,527,953 767,421 319,503 119,536 371,605 30,613 134,937 3,997 24,531 188,382 132 110.388 274,475 25.951 123,135 13,784 31,173 539,185 75,703 281,222 13,043 179,007 337 76,746 305,960 160,019 1.286,232 29,414 1,025,662 4,975 339,562 Total deductions ................................................ 527,937 1,581,598 390,319 10,980 20,294 5.108 15.750 8,183 29.174 6.206 3,641 38,281 1,174.935 26,771 59,953 20,084 37,456 3,278 58,126 5,196 9,479 186,321 1,570,226 Contributions, gifts. and grants paid ........................... Compensation of officers .......................................... Other salaries and wages ........................................ Pension plans, employee benefits .............................. Investment, legal and other professional services ......... Interest ................................................................. Taxes ................................................................... Depreciation and depletion ....................................... Occupancy ............................................................ Other expenses ...................................................... Total u Assets zero of nreportod (2) $1 under $lC10000 . 1,125,326 1,184,067 22,337 $1,000.000 under $10,000,000 (5) $10.000.000 nder $25.000,000 u S25,000,000 under $50,000,000 493 5,967,814 162 4,751,234 as 4,639,926 80 19,375,972 622.003 36,558 5a5,445 39,272 10,000 1,823 23,603 92,808 12,233 13,887 4.809,809 4,466,902 453,605 29,826 423,779 25,795 2 75 1 44,308 2.761 2,839 3,987,095 3,534,173 386,393 26,011 360.382 32,076 57,020 291 506 3,943,535 3.652,311 763,060 30,477 732,583 99,136 2,763 1 5,0D6 47,570 1,245 2,701 17.801,878 17,255,330 128,087 40,328 174,493 136,416 47,713 268,794 46,564 35,299 209.360 169,812 142,906 233,830 (6) $50.000,000 under $100,01)(3,000 $100.000 ,000 or more (8) (9) *11,11311 '14,997 -1,109 -15,581 19,370 47,155 '69,741 '38,900 2,041 160,381 119,509 113,472 148,122 7,506 1,169 81,667 29.420 -6,087 6,906 184,547 264,945 2,920,886 662,390 9,658,355 2,097,182 2,679,359 24,482 799.713 2,970,206 181,971 1,7113,651 113,222 573,924 -5,673 216,874 *276 27,282 15,332 *775 3,228 349,425 -1,902 74,813 174,098 5,776 41,700 -4.263 10,414 754,358 '16,002 231,696 566.829 76,398 277,832 85,865 88.201 5,834,328 6,721 458,142 524,324 1,515,561 746,610 473,535 4.477.761 105,365 254,176 50,572 144,DO7 35,859 177,208 51,080 33,411 504,889 -5,6530 -4 '206 - 414,534 456,305 7,514 12,421 .1.900 11,003 1,324 7.615 1,727 594,660 14,680 32.096 4,914 21,888 6.649 19,247 8,070 3,785 40.521 342,470 10,852 22,608 4,691 12,950 2,466 25,149 9,46 2,793 40,090 293,886 637,306 366,377 72,491 674,890 37,5114 1,795,134 224,907 204,879 686,387 28.587 129,155 4,258,569 18,326,964 1,165,244 3,151,824 23,579 1.098,908 33,798 106,598 13,866 40,906 13,807 36,925 17,899 10,854 142,001 Net Income (less deficit) ................................. 3,292,200 '186 -1939198 138,065 581,621 264,108 Net income ........................................................... Deficit ................................................................... 4,274,832 982,631 -1,048 *862 41,734 234,932 246,205 108,140 775,798 194,177 373.646 109,538 Total assets (fair market value) ..................... 62,886,606 416,696 39262,919 11,981,973 7,543,920 5,816,8 2 6,035,403 27,828,843 4,597,266 49,822,624 161,161 176,924 718,922 1,975,788 1,514,107 8,080,023 617,710 5,571,440 430765 4,445:653 389,131 4,657,527 765,469 24.915,268 1,512,375 -3,827 99,361 329.802 338,938 254,981 88,845 396,621 1,491.368 '22,825 75,226 562,264 225,"0 213,312 212,698 179,600 -5,902 596,194 2,796,059 9,279,226 6,535,151 4,286,246 3,884,496 16,798,623 -3,902 153,405 1,789,958 5,889,219 4,168,101 3,192,05 2,957,995 -7,355 75.818 161,048 109,502 Selected fair market value assets: Cash, total ......................................................... Investments in securities ....................................... Investment-purpose land, buildings, and equipment (Loss accumulated depreciation) .......................... Charitable-purpose land, buildings, and equipment (Less accumulated depreciation) .......................... Beginning of year assets (book value). ....... tot al - ............................................................... Selected beginning of year assets; Investments in securities ........................................ Investment-purpose land, buildings, and equipment (Less accumulated depreciation) ........................... 43,181,89 31,673,360 712.059 .8 3,871 - 920 -2,517 -1,923 33,452 *Estimate should be used with caution because of the small number of sample returns on which it is based. 'Lew than $5D0. NOTE: Detail my not add to total because of rounding. `1 157.821 13,518,721 1 37,5041 163,005 24 Private Foundation Information Returns, 1982 Balance Sheet*and Income Statement Items, and Reconciliation of Net Worth, by Size of Table 4.-All Foundations: Selected Total Fair Market Value of Assets [Money amounts are in thousands of dollars] Sure of total fm market vahA of assets Total Item All foundations, total .............................. Assets zero or unreported Number Of returns Amount (1) (2) Number Of returns (3) $1 Urder $100.000 Amount Number Of returns (4) (5) $10-0.000 under $1,000.000 Amount Number of returns (6) (7) $1.000.000 UrKler $10,000,000 Amount Number Of returns Amount (8) (9) (10) 28,468 62,886,606 1,515 - 13,237 416,696 9,125 3,262,919 3,771 11,981,F73- 27.58 3,771 10,096,084 Foundations with - 48,227,043 *631 -6,107 13,237 408,901 9,125 2,981,006 Selected assets: Cash , total .............................................. Investments in securities ............................ 26,507 16,815 4.643,217 37.418.071 I'm -2,218 -3,814 12.795 5,535 161,414 155,798 8.830 7.104 726,422 1.770,325 3,606 3,348 1,528,103 6,579.417 Total liabilities .......................................... 7,001 2,593,918 147 *20 2,210 224,354 2,452 60,120 1,627 437,728 Selected liabilities: Contributions , gifts. and grants payable ......... Mortgages and other notes payable ............. 1,142 464 1,264,317 418,791 - - :589 147 '196053 :211 126 '11,221 '15,581 176 155 69.741 160,381 27,584 45,633,125 *631 -6,087 13,237 184,547 9,125 2,920,886 3,771 9,658,355 Total assets (Book value) .................... Net worth/fund balances (end of year) .......................................................... Reconciliation of net worth/fund balances: Net worth/fund balances (beginning of year)..... Plus: Net income .............. ... . ........................... Other increases ........................................ Minus: Deficit ........ . . ........................................... Other decreases ....................................... Equals: Not worth/fund balances (end of year) ......... Total receipts .......................................... Selected receipts: Contributions. gifts, and grants received ........ Interest on savings and temporary cash investments .......................................... Dividends and interest from securities .......... Net capital gain........................................ Net short-term capital gain ......................... Total deductions ...................................... Selected deductions: Contributions , gifts, and grants paid ............. Compensation of officers .1 ......................... Investment legal and other professional servioes ............ . ...................... . ......... Total assets (fair market value) .......... Cash, total ... .............................................. Non-interest bearing accounts ..................... Savings and temporary cash investments .... Accounts receivable. net ............................... Pledges receivable, net ................................. Grants receivable ......................................... Receivables due from disqualified persons ........ Other notes and loans receivable, net ............. Inventories .................................................. Prepaid expenses and deferred charges ........... Investments, total ......................................... securities ................................................ Land, buildings, and equipment (Less accumulated depreciation) ............. ......... Mortgage loans ........................................ Other investments ..................................... Charitable-purpose land, buildings, and equipment (Loss accumulated depreciation .... Other assets .......................................... Footnotes at end of table. 27,283 40.807,229 12,648 332,050 9,125 2,743.832 3,771 8,840,121 15,896 5,170 , 4,274.833 1,818.190 -1,048 - 6,376 2.210 41,734 52.714 6,041 1,642 246,206 57,482 2,547 1,017 775,798 259,238 11.064 4.928 982,632 284,495 - 6,124 2,357 234,932 7,018 2,915 1,578 108,141 18,494 1.215 786 194,177 22,624 '926 27,5B4 45.633,125 -6.087 13,237 184,547 9,125 2,920,886 3,771 9,658,355 27,603 9,126,529 -1,368 -6,906 12,606 264,945 9,040 662,390 3,771 2,097,182 13,222 2,679,359 -1,221 -5,673 6,376 216,874 3,621 349,425 1.670 754,358 18" 17,389 5,513 2,699 27,645 799, 713 2970,206 1 :754,665 461.233 5,834,328 8,334 5,787 27,282 15,332 -1 , 885 6,283 7,356 2, 210 968 9,040 74,813 174,098 65 ,742 16.358 524,324 2,631 3,276 2, 021 962 3,771 231,696 566.829 244,538 35,845 1,515,561 23,806 5,135 4,477,761 105,365 -1,031 3,429 1,371 1,098.908 33,798 14,532 144.007 26,953 62,886,606 25,829 4,597,266 549,787 19.890 4.047479 16904 235:831 2:781 -20,851 *55 43 ,001 60 116 35,929 1,676 552,997 287 45.106 504 40.587 19,110 54,020,4 34 17,025 49,822,624 .337 - 1,515 6,721 *442 12,500 -5,630 -4 9,954 -1,178 414,534 8,619 1,895 456,305 7.514 5,156 13,-237 12,648 9,323 7597 . 1:178 - 3,871 416,696 161,161 47,447 113714 5,357 ~9,125 8.7118 7,009 6,031 600 '42 - -3.911 505 6 ,903 5,935 210,642 176,924 126 7, 819 6,967 11,003 3,262"919 718,922 134,526 584396 2:882 -3,125 -1,376 46 .029 -9 ,844 '20,897 2,325 ,920 1,975.788 458,142 40,906 2,933 -3,771 11,981,973 3,605 1,514,107 2,908 190,632 2,684 1,323476 704 32:940 -1,725 *52 -38,341 454 125 271 3, 585 3,347 262.449 10 ,455 4,152 9,181,129 8,080,023 1,727 1,018 3,520 1.512,375 418,754 2,266,681 -1 ,010 -3,827 -8,D02 *21 . 889 632 *253 1 , 231 99,361 - 53,936 196 ,834 467 382 1 .037 329,802 94,362 676,942 2591 7:"l 1,491,366 1,803,231 779 3,094 . '22821 10:02 716 2,368 75,228 58.695 777 1,541 562,264 374,368 Private Foundation Information Returns, 1982 25 Table 4.-All Foundations: Selected Balance Sheet and Income Statement Items, and Reconciliation of Net Worth, by Size of Total Fair Market Value of Assets - Continued [Money amounts are in thousands of dollars] S= of total fair market value of assets - Continued Item $10,000,000 under $25,000,000 Number raumSof S25 000,000 under $50,000.000 Amount (12) All foundations, total ...................................................................... Foundations with Total assets (Book value) .............................................................. Selected assets: Cash. total..,... ......................................................................... Investments in securities .................................................................... Total liabilities ................................................................................. Selected liabilities: Contributions, gifts, and grants payable ................................................. Mortgages and other notes payable ...................................................... Net worth/fund balances (end of year) ...................................... Reconciliation of net worth/fujid balances: Net worth/fund bal [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3Ab6a95d2bc3e359aa. Public record. Not legal advice.