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Domestic Private Foundations and Charitable Trusts,
2000
by Melissa Ludlum
P
rivate foundations contribute billions of dollars
to the charitable sector each year, often by
providing financial support to charitable organizations and initiatives. Foundations’ outlays, which
are generally grants awarded to charitable organizations, communities, or individuals, contribute to the
operation of charitable programs in such areas as
education, arts and humanities, health, human services, and environmental protection. Foundations,
which are tax-exempt under Internal Revenue Code
section 501(c)(3), are annually required to file the
information return, Form 990-PF. Foundations file
these returns for the reporting year in which financial
activities occurred. The data presented in this article
are from Forms 990-PF filed by domestic private
foundations, defined as those foundations organized in
the United States, for Reporting Year 2000 [1].
Returns filed for Reporting Year 2000 had accounting periods beginning in Calendar Year 2000 and thus
ending between December 2000 and November
2001. Consequently, the returns reflect financial
activity that occurred in either Calendar Year 2000 or
2001, or some portion of both (see the Data Sources
and Limitations section for further information). For
Reporting Years 1999 and 2000, the total number of
Forms 990-PF filed by private foundations increased
by nearly 7 percent to 66,738.
The aggregate fair market value of total assets
held by domestic private foundations grew only 1
percent between Reporting Years 1999 and 2000,
with virtually no change to total investment assets,
which comprise the majority of total assets. Contributions to private foundations fell by nearly 17 percent, a factor that contributed to a 13-percent decrease in revenue overall. Despite the lackluster
growth in foundation investments and decreased
support through contributions, these organizations
disbursed nearly $27.6 billion in contributions, gifts,
and grants for charitable purposes, an increase of
more than 21 percent over the previous year [2].
Various financial data, including private foundation
asset, revenue, and expense items for 1999 and 2000,
are shown in Figure A.
Nonexempt charitable trusts, as described in
Internal Revenue Code section 4947(a)(1), are also
Melissa Ludlum is an economist with the Special Studies
Special Projects Section. This article was prepared
under the direction of Barry Johnson, Chief.
required to file Form
PrivateFoundationsdis990-PF each reportbursednearly$27.6billion
ing year. The number of domestic
incontributions,gifts,and
nonexempt charigrantsforcharitablepurtable trusts that filed
poses,anincreaseofmore
Forms 990-PF for
Reporting Year
than21percentoverthe
2000 increased by 6
prevousyear.
percent from the
previous year, to
2,966. These trusts reported aggregate fair market
value of total assets of $5.0 billion, revenue totaling
$0.6 billion, and distributions of $0.3 billion in contributions, gifts, and grants [3].
StatisticsofIncomeStudies
The statistics presented in this article on both private
foundations and charitable trusts are based on sample
data from Form 990-PF, Return of Private Foundation (or Section 4947(a)(1) Charitable Trust
Treated as a Private Foundation), the annual
information return filed by these organizations.
Statistics of Income studies on private foundations
have been conducted for Reporting Years 1974,
1979, 1982, 1983, and annually since 1985. Studies
on 4947(a)(1) charitable trusts that are treated as
private foundations have been conducted for Reporting Year 1979 and annually since 1989.
PrivateFoundations
LegalandTaxDefinitions
Internal Revenue Code (IRC) section 501(c)(3)
grants exemption from the income taxes described in
IRC, Title 26, Subtitle A to private foundations and
other organizations that conduct activities or provide
financial support for charitable purposes. In most
cases, a private foundation is a corporation, association, or trust, which provides some manner of
charitable support or conducts charitable activities
[4]. A foundation is distinguished from other taxexempt organizations by several characteristics; the
most notable difference is its narrow sphere of
support and control, which is generally limited to an
individual, family, or corporation. As they generally
receive financial support from a small number of
sources and are not dependent on public contributions, foundations are not directly accountable to the
137
Domestic Private Foundations and Charitable Trusts, 2000
Figure A
Domestic Private Foundations: Selected Financial Items and Percentage Changes, 1999-2000
[Money amounts are in millions of dollars]
Item
1999
2000
Percentage
change,
1999-2000
(1)
(2)
(3)
Number of foundations........................................................................................................................62,694
66,738
Total assets (fair market value)........................................................................................................................
466,863.0
471,645.7
1.0
4,071.7
33.9
Cash (noninterest bearing accounts)........................................................................................................................
3,041.6
Investments, total........................................................................................................................ 444,151.1
6.5
447,437.0
0.7
Savings and temporary cash investments........................................................................................................................
33,534.1
32,989.3
-1.6
Investments in securities, total........................................................................................................................
363,442.0
361,417.5
-0.6
Government obligations........................................................................................................................
42,703.6
46,131.7
8.0
Corporate stock........................................................................................................................
283,373.8
270,444.8
-4.6
Corporate bonds........................................................................................................................
37,364.7
44,841.0
20.0
Other investments ¹........................................................................................................................
47,175.0
53,030.2
12.4
72,780.0
-12.6
Contributions, gifts, and grants received........................................................................................................................
38,207.8
31,798.2
-16.8
Net gain (less loss) from sales of assets........................................................................................................................
30,808.2
24,601.9
-20.1
Dividends and interest from securities........................................................................................................................
9,334.7
10,187.7
9.1
37,433.9
10.5
Disbursements for exempt purposes........................................................................................................................
26,402.2
31,874.1
20.7
Contributions, gifts, and grants paid ²........................................................................................................................
22,762.8
27,563.6
21.1
Total revenue........................................................................................................................
Total expenses........................................................................................................................
83,286.0
33,876.3
¹ Sum of "Investments in land, buildings, and equipment (less accumulated depreciation)," "Investments in mortgage loans," and "Other investments," as reported on
Form 990-PF. "Other investments" includes such items as advances; certificates of investment; and investments in art, coins, gold, and gems.
² Includes amounts that foundations actually disbursed, on a cash basis.
138
138
public, and, consequently, are subject to greater
Federal regulation than other tax-exempt organizations. Initially, any organization defined as taxexempt under IRC section 501(c)(3) is presumed to
be a private foundation and is thus required to file
Form 990-PF. Certain organizations, such as hospitals, schools, and organizations that receive large
degrees of support from the general public, will
automatically be granted “nonprivate foundation”
status. These organizations will instead file Form
990, Return of Organization Exempt From Income
Tax, or Form 990-EZ, the short version of this
information return (see “Private Foundation” in the
Explanation of Selected Terms section of this article
for a detailed description of the requirements for
Form 990 versus Form 990-PF filers). Some charitable organizations, including churches and
organizations with minimal asset holdings and income,
are exempted from filing any information return.
Private foundations filed approximately one-fourth of
all Forms 990, 990-EZ, and 990-PF filed for Reporting Year 2000. Additionally, they held approximately
one-fifth of total assets, which are reported, in book
value only, by both Form 990 and 990-EZ filers.
Private foundations earned only 8 percent of all
revenue reported on the three forms [5].
Depending on the type of charitable support that
a private foundation provides, it may be classified as
either “nonoperating” or “operating.” A nonoperating
foundation is defined as such because it generally
supports charitable programs indirectly, providing
grants to other nonprofit organizations, rather than
operating programs of its own. These foundations,
which represented 92 percent of Form 990-PF filers
for Reporting Year 2000, are legally required to
distribute a minimum amount for charitable purposes
each year. An operating foundation is directly involved in the operation of its own charitable activities.
In order to qualify as operating, a foundation must
meet certain financial criteria (see “Operating Foundations (and Charitable Trusts)” in the Explanation of
Selected Terms section for information on operating
foundations). Common examples of such organizations include museums, facilities providing housing or
healthcare, or organizations conducting scientific
research. Few private foundations are characterized
as operating; these types of organizations filed just 8
percent of Forms 990-PF for Reporting Year 2000.
Domestic Private Foundations and Charitable Trusts, 2000
While many foundations that qualify as operating also
contribute to other organizations’ charitable programs, such distributions are not legally required of
them. In the event that a foundation fails to meet the
operating foundation requirements for a reporting
year, it is treated as nonoperating and is subject to the
rules that govern nonoperating foundations.
While private foundations are granted exemption
from Subtitle A income tax, they may be subject to
certain other taxes. All organizations exempt under
IRC section 501(c)(3) are required to pay taxes on
income earned in a manner that is not substantially
related to the organization’s exempt purpose. Exempt organizations report such income separately on
Form 990-T, Exempt Organization Business Income Tax Return. The Tax Reform Act of 1969
(TRA69) established additional taxes specific to
private foundations and was the basis for sections
4940-4945 of the Internal Revenue Code. Section
4940 of these regulations includes an excise tax on
“net investment income,” which consists of income
received only from investments. This tax applies to
all nonoperating and most operating foundations and
is reported annually on Form 990-PF. Sections 49414945 define activities that are considered to be contrary to the public interest and outline the taxes imposed on foundations that engage in such “prohibited
activities.” Business ventures or investments that in
some way jeopardize the foundation’s charitable
purpose, or acts of “self-dealing,” which are defined
as financial transactions with foundation officers,
directors, trustees, substantial contributors, or “other
disqualified persons,” are considered to be contrary
to the public interest and taxable under IRC section
4941 (see “Disqualified Person” in the Explanation of
Selected Terms section). IRC section 4942 describes the excise tax on nonoperating foundations
that fail to distribute a minimum amount for charitable
purposes. Taxation of excess business holdings,
certain high-risk investments, and various prohibited
expenditures, such as participation by a foundation on
behalf of, or in opposition to, a candidate for public
office, or efforts to influence legislation by contacting
legislators, or encouraging the public to do so, are
taxable under IRC sections 4943-4945. Taxes on the
activities described in IRC sections 4941-4945 are
reported separately on Form 4720, Return of Certain Excise Taxes on Charities and Other Persons
Under Chapters 41 and 42 of the Internal Revenue Code, and are not included in this article.
Asset-SizeClassProfileofForm990-PFFilers
Small foundations, defined for purposes of this article
as those holding less than $1 million in fair market
value of total assets, accounted for 66 percent of the
66,738 Forms 990-PF filed for 2000, but held only 2
percent of assets, as shown in Figure B. In contrast,
large foundations, those with $50 million or more in
fair market value of total assets, represented fewer
than 2 percent of all returns filed, but accounted for
69 percent of overall asset holdings, with nearly 62
percent of all foundation assets held by those foundations with fair market value of total assets of $100
million or more. Large foundations also dominated
the revenue category, with those holding $100 million
or more in fair market value of total assets reporting
50 percent of total revenue. Medium foundations,
which held between $1 million and $50 million in fair
market value of total assets, held 29 percent of all
assets and earned 37 percent of all revenue, while
accounting for nearly one-third of all Forms 990-PF
filed for 2000.
SourcesofFoundationRevenue
Foundations received revenue for Reporting Year
2000 from a variety of sources, the largest of which
included contributions received, net gain from sales of
assets, and dividends and interest from securities.
While the total amount of contributions to private
foundations decreased by nearly 17 percent between
1999 and 2000, contributions remained the largest
component of overall revenue. Net gain from sales
of assets, which accounted for 34 percent of total
revenue reported for 2000, suffered a larger decrease of 20 percent from the previous year. Of the
three major components of revenue, only dividends
and interest from securities performed better in
Reporting Year 2000 than in the previous year, rising
9 percent and representing 14 percent of total
revenue. Figure C shows revenue sources for 2000
for all foundations, by asset-size class.
In addition to accounting for the largest portion of
aggregate foundation revenue, contributions received
were the major revenue source for two of the three
asset-size classes. Small and medium foundations
reported contributions as 80 percent and 52 percent
139
Domestic Private Foundations and Charitable Trusts, 2000
Figure B
Domestic Private Foundations: Selected Financial Items, by Size of Fair Market Value of Total Assets,
2000
[Money amounts are in millions of dollars]
All foundations
Asset-size
Nonoperating foundations only
Number of
Total FMV
Total
Number of
Total FMV
Total
returns
(1)
assets
(2)
revenue
(3)
returns
(4)
assets
(5)
revenue
(6)
Amount
Amount
Total..........................................................................................................................
66,738
471,645.7
72,780.0
Small foundations:
Less than $100,000 ..........................................................................................................................
17,648
635.9
797.6
$100,000 under $1,000,000..........................................................................................................................
26,365
10,495.1
2,781.1
61,501
432,707.1
66,184.6
16,148
24,586
577.5
9,661.7
777.8
2,544.4
Medium foundations:
55,942.6
12,203.3
$1,000,000 under $10,000,000..........................................................................................................................
17,793
16,484
78,545.9
14,624.0
$10,000,000 under $50,000,000..........................................................................................................................
3,866
3,300
51,734.2
70,089.7
10,746.9
12,685.0
Large foundations:
35,859.9
5,861.8
$50,000,000 under $100,000,000..........................................................................................................................
514
290,166.3
36,512.2
$100,000,000 or more..........................................................................................................................
552
33,464.7
267,179.4
5,492.7
33,937.7
479
503
Percentage of total
140
Percentage of total
Total..........................................................................................................................
100.0
100.0
100.0
100.0
Small foundations:
Less than $100,000 ..........................................................................................................................
26.4
0.1
1.1
26.3
$100,000 under $1,000,000..........................................................................................................................
39.5
2.2
3.8
40.0
Medium foundations:
$1,000,000 under $10,000,000..........................................................................................................................
26.7
11.9
16.8
26.8
$10,000,000 under $50,000,000..........................................................................................................................
5.8
16.7
20.1
5.4
Large foundations:
$50,000,000 under $100,000,000..........................................................................................................................
0.8
7.6
8.1
0.8
$100,000,000 or more..........................................................................................................................
0.8
61.5
50.2
0.8
100.0
100.0
0.1
2.2
1.2
3.8
12.0
16.2
16.2
19.2
7.7
8.3
61.7
51.3
NOTES: Detail may not add to totals because of rounding and processing tolerances. "FMV" is an abbreviation for fair market value.
of total revenue, respectively. Large foundations,
which received only 35 percent of their revenue from
contributions, remained less dependent on this source
of revenue than did their smaller counterparts. For
large foundations, net gain from sales of assets comprised a greater portion of total revenue, 40 percent,
than did any of the other revenue categories.
140
CategoriesofRevenue
In addition to identifying revenue sources, a foundation must specify the manner in which it produced
revenue each reporting year and may be required to
pay income taxes on revenue that is unrelated to its
exempt purposes. All foundations are required to
characterize any revenue reported, other than contributions, in one of three categories. The first category,
“unrelated business income,” is taxable income from
a trade or business that is regularly carried on by the
organization but is not substantially related to the
foundation’s exempt purpose or function, other than
to provide income to the organization. Organizations
with unrelated business income must file Form 990-T.
Private foundations reported $220 million in unrelated
business income for 2000, less than 1 percent of total
revenue [6]. Fewer than 5 percent of all private
foundations reported unrelated business income.
Revenue categorized as “excluded income,”
although not directly related to the tax-exempt, charitable function of the foundation, is exempted or
excluded from the tax on unrelated business income
by IRC sections 512, 513, or 514. Included in this
category are dividends, interest, rental income, and
gains from sales of investment assets. Excluded
income for 2000 totaled $36.7 billion, 91 percent of
total income as reported on the “Analysis of Income
Producing Activities” schedule.
Domestic Private Foundations and Charitable Trusts, 2000
Figure C
Sources of Domestic Private Foundation Revenue, by Asset-Size Class, 2000
All Foundations
4%
4%
44%
$72.8 Billion
34%
14%
Small Foundations
Medium Foundations
Large Foundations
Less than $1,000,000 in fair market value of
total assets
$1,000,000 to less than $50,000,000 in fair
market value of total assets
$50,000,000 or more in fair market value of total
assets
$3.6 Billion
1
$26.8 Billion
Contributions, gifts, and
grants received
Net gain (less loss)
from sales of assets
Dividends and interest
from securities
Other interest
$42.4 Billion
Other income
2
1
Represents "Interest on savings and temporary cash investments," as reported on Form 990-PF.
2
Includes "Gross rents and royalties" and "Gross profit (or loss) from business activities" as reported on Form 990-PF, as well as such items as imputed interest on deferred
payments and program-related investment income.
NOTE: Detail may not add to totals because of rounding and processing tolerances.
141
Domestic Private Foundations and Charitable Trusts, 2000
Income that is directly related to the function
or purpose for which an organization has received
tax exemption is classified as “related or exempt
function income.” Nearly 9 percent, or $3.4 billion,
of the income reported on the “Analysis of Income
Producing Activities” schedule was categorized as
exempt income.
142
ExciseTaxonNetInvestmentIncome
Interest, dividends, net income from realized capital
gains, and other income earned outside of a foundation’s charitable purpose, are known collectively as net
investment income. In accordance with IRC section
4940, private foundations pay excise tax on their net
investment incomes each year. This tax is intended
to cover expenses incurred by the IRS in the oversight
of foundation activities and the enforcement of laws
governing their exempt status. Generally, domestic
foundations are taxed at a rate equal to 2 percent of
their worldwide net investment incomes [7].
Private foundations that meet certain requirements may be eligible for a reduction or exemption
from the excise tax on net investment income. A
domestic nonoperating foundation that is able to show
a certain degree of improvement in the rate of its
charitable distributions may be eligible to pay the tax
at a 1-percent rate. Specifically, if certain distributions made for charitable purposes, known as “qualifying distributions,” exceeded a 5-year average of
qualifying distributions plus 1 percent of current net
investment income, a foundation was eligible for the
reduced tax rate for Reporting Year 2000. An
exemption from this excise tax is available to certain
domestic operating foundations. Operating foundations that are eligible for this exemption must maintain public support in the form of income or contributions for a 10-year period. Additionally, they must
have boards of trustees or other governing bodies
that are representative of the general public and
consist of no more than 25-percent disqualified
persons for the reporting year. Further, no disqualified person is allowed to have served as an officer
during the year. For 2000, about 20 percent of all
operating foundations reported that they had met
these requirements and were not liable for the excise
tax on net investment income [8].
As shown in Figure D, foundations reported $625
million in excise tax on net investment income for
Reporting Year 2000, with $47.4 billion in net investment income subject to tax. Total net investment
income for all foundations, including those exempt
from the tax, was $48.8 billion, down from $57.1
billion in Reporting Year 1999. The majority of
domestic foundations, 53 percent, paid the excise tax
at the higher 2-percent rate, but 52 percent of all
excise taxes collected were paid at the 1-percent
rate. This is attributable to the higher total net investment incomes earned by large private foundations, 69
percent of which determined their excise tax based
on the reduced rate.
Figure D
Domestic Private Foundations Reporting Excise Tax on Investment Income, by Asset-Size Class, 2000
[Money amounts are in millions of dollars]
All foundations
Item
Small foundations
Medium foundations
All asset-size
FMV of total assets
FMV of total assets
FMV of total assets
classes
Less than $1,000,000
$1,000,000 to less than
$50,000,000
$50,000,000 or more
(1)
(2)
(3)
(4)
Number of foundations...........................................................................................................
55,733
33,988
Percentage of all foundations...........................................................................................................
83.5
77.2
20,732
95.7
1,013
95.0
Net investment income (NII) ¹...........................................................................................................
47,388.2
960.4
14,128.4
32,299.4
Excise tax...........................................................................................................
625.0
14.7
200.0
410.3
Percentage of all foundations reporting excise tax:
1-percent tax...........................................................................................................
46.8
2-percent tax...........................................................................................................
53.2
40.8
59.0
55.6
44.3
68.6
31.4
¹ Represents net investment income of foundations reporting excise tax. Total net investment income for all foundations was $48.8 billion.
142
Large foundations
Domestic Private Foundations and Charitable Trusts, 2000
including investments in land, buildings, and equipment; mortgage loans; and such additional items as
advances, certificates of investment, and investments
in art, gold, coins, and gems.
Stock values, after considerable gains in the midto-late-1990’s, began to decline in Calendar Years
2000 and 2001. Corporate stocks held by private
foundations were no exception, and experienced a
real decrease of nearly 7 percent for Reporting Year
2000. These investments represented the majority of
total securities, and their decline accounted for a 3percent drop in that category. In real terms, the
remaining investment categories shown in Figure E,
including the two other types of securities, experienced
increases for Reporting Year 2000. Corporate bonds
increased by 18 percent over the previous year, while
FoundationAssetsandInvestments,ConstantDollar
Analysis
The value of investments, which comprise the
majority of aggregate foundation endowments, are
most precisely measured over time when adjusted
for inflation to obtain “real” changes [9]. Figure E
shows inflation-adjusted changes in total and selected
types of investments, between Reporting Years 1999
and 2000. The majority of foundation assets, 95
percent, were held as investments, which totaled
$447.4 billion in Reporting Year 2000, a 1-percent
real decrease. Investment assets include savings
and temporary cash investments, securities (corporate stock and bonds and government obligations),
and “other investments.” The “other investments”
category represents an aggregation of several items,
Figure E
Domestic Private Foundations: Investments and Percentage Changes, by Asset-Size Class in
Constant Dollars, 1999-2000
[Money amounts are in millions of dollars]
All foundations
Small foundations
All asset-size classes
FMV of total assets
Less than $1,000,000
Item
1999
2000
Percentage
change,
1999
2000
Percentage
change,
(1)
(2)
1999-2000
(3)
(4)
(5)
1999-2000
(6)
9,515.8
1,850.5
6,730.2
706.0
5,076.4
947.8
935.1
10,024.4
2,023.6
6,996.6
753.6
5,359.4
883.6
1,004.2
5.3
9.4
4.0
6.7
5.6
-6.8
7.4
Investments, total (fair market value)......................................................................................................................
453,478.3
447,437.0
-1.3
Savings and temporary cash investments......................................................................................................................
34,238.3
32,989.3
-3.6
Investments in securities, total......................................................................................................................
371,074.3
361,417.5
-2.6
Government obligations......................................................................................................................
43,600.4
46,131.7
5.8
Corporate stock......................................................................................................................
289,324.6
270,444.8
-6.5
Corporate bonds......................................................................................................................
38,149.4
44,841.0
17.5
Other investments ¹......................................................................................................................
48,165.7
53,030.2
10.1
Medium foundations
Large foundations
FMV of total assets
$1,000,000 to less than $50,000,000
FMV of total assets
$50,000,000 or more
Item
1999
2000
Percentage
change,
1999
2000
Percentage
change,
(7)
(8)
1999-2000
(9)
(10)
(11)
1999-2000
(12)
321,472.4
20,977.4
265,616.4
30,644.7
209,261.7
25,710.0
34,878.6
313,054.8
17,975.6
256,563.7
32,794.1
192,286.2
31,483.4
38,515.5
-2.6
-14.3
-3.4
7.0
-8.1
22.5
10.4
Investments, total (fair market value)......................................................................................................................
122,490.1
124,357.8
1.5
Savings and temporary cash investments......................................................................................................................
11,410.4
12,990.1
13.8
Investments in securities, total......................................................................................................................
98,727.8
97,857.2
-0.9
Government obligations......................................................................................................................
12,249.6
12,584.0
2.7
Corporate stock......................................................................................................................
74,986.6
72,799.3
-2.9
Corporate bonds......................................................................................................................
11,491.5
12,474.0
8.5
Other investments ¹......................................................................................................................
12,351.9
13,510.5
9.4
¹ Sum of "Investments in land, buildings, and equipment (less accumulated depreciation)," "Investments in mortgage loans," and "Other investments," as reported on Form 990-PF.
"Other investments" includes such items as advances; certificates of investment; and investments in art, coins, gold, and gems.
NOTES: Amounts have been adjusted for inflation based on the 1996 chain-type price index for Gross Domestic Product, as published by the U.S. Department of Commerce, Bureau
of Economic Analysis and may differ from investment amounts in other tables and figures. Reporting Year 2000 is the base year. Detail may not add to totals because of rounding and
processing tolerances. "FMV" is an abbreviation for fair market value.
143
Domestic Private Foundations and Charitable Trusts, 2000
Government obligations, which include municipal,
State, and Federal obligations that mature in 1 year or
more, increased by a more modest 6 percent.
The investment assets of small and medium-sized
foundations faired better for Reporting Year 2000
than did those of their larger counterparts. While
total investments assets fell by 3 percent for large
foundations, asset values of small and medium organizations experienced increases of 5 percent and 2
percent, respectively. Total securities, which increased by 4 percent for small foundations, decreased for both of the larger asset-size classes.
144
144
CompositionofInvestmentAssetsbySizeofFoundation
Since foundations, in varying degrees, use income from
investments to finance their grants and disbursements,
asset growth figures prominently in creating the
financial basis for private foundation charitable
giving. Foundations may choose the manner in which
they manage and invest their assets. Investments in
corporate stock are considered to be high-risk, but
also provide higher returns in the long run, while
short-term investments, such as temporary cash
investments, have little risk but less return. Large
foundations generally invest extensively in corporate
stock and other long-term investments and relatively
little in short-term investments, while small and
medium foundations, though still holding large portions
of assets in corporate stock, are more likely than
large foundations to hold a significant share of their
portfolios in short-term investments.
Figure F shows the composition of investment
assets for all foundations, by asset-size class. Corporate stock was the major investment asset for each
size category of foundation for 2000. Small foundations held 53 percent of their investment assets in
corporate stock; this category represented 59 percent
and 61 percent of investment assets for medium and
large foundations, respectively. Savings and temporary cash investments, the category representing
short-term investments, represented 20 percent of
investment assets for small foundations but only 6
percent for large foundations.
IncomeYieldsandRatesofTotalReturn
The “net investment income yield” and “rate of total
return” formulas provide measures of the performances of foundations’ investment assets. An
income yield is a measure of the realized investment
income that a foundation earns on its investment
assets. Figure G shows median “net investment
income yields” and “rates of total return on assets”
for domestic nonoperating foundations, by size, for
2000. Both the mean and the median, which minimizes the influences of large outliers in the data and
may therefore better represent a typical foundation
than the mean value, are calculated. The net investment income yields for Reporting Year 2000 differ
from those published previously; the calculation
includes only organizations that appear in both of
Reporting Years 1999 and 2000 and thus provides
percentages more comparable to the rate of total
return formula, which also excludes organizations that
were included in the sample for only one Reporting
Year. The net investment income (NII) yield was
calculated by dividing net investment income by the
end-of-year fair market value of investment assets
[10]. As in previous years, large foundations earned
higher median income yields for 2000 than other size
classes, while small foundations earned the smallest
median yields.
Further insight into foundation investment return
can be gained by examining data for the rate of total
return on assets. This measure, which represents the
total capital appreciation of a foundation’s endowment, is a more comprehensive indication of total
investment performance than the NII yield. It measures the realized income from investments and other
assets, as well as the unrealized appreciation or
depreciation in the fair market value of assets. The
rate-of-total-return formula used here measures the
change in the value of the entire asset base with
consideration for inflows and outflows of money,
such as contributions received and grants paid [11].
Median rates of total return dropped considerably
from previous years for most asset-sizes classes,
with negative median rates of return for both medium
and large foundations, indicating that foundations with
larger asset holdings suffered the effects of decreased investment values more strongly. Median
rates of return for 2000 were lower than net investment income yields for foundations in all asset-size
classes.
TheCharitableDistributionRequirement
The performance of a foundation’s assets throughout
a given reporting year affects the amount that it is
Domestic Private Foundations and Charitable Trusts, 2000
Figure F
Composition of Domestic Private Foundation Investment Assets, by Asset-Size Class, 2000
All Foundations
12%
7%
10%
$447.4 Billion
60%
10%
Small Foundations
Medium Foundations
Large Foundations
Less than $1,000,000 in fair market value
of total assets
$1,000,000 to less than $50,000,000 in fair
market value of total assets
$50,000,000 of more in fair market value
of total assets
$124.4 Billion
$10.0 Billion
Corporate stock
Government obligations
Savings and temporary cash investments
$313.1 Billion
Corporate bonds
Other investments
1
¹ Sum of "Investments in land, buildings, and equipment (less accumulated depreciation)," "Investments in mortgage loans," and "Other investments," as reported on Form
990-PF. "Other investments" includes such items as advances; certificates of investment; and investments in art, coins, gold, and gems.
NOTE: Amounts of investment assets are shown in fair market value.
required to distribute for charitable purposes. Foundations may hold two types of assets,
“charitable-use” and “noncharitable-use.” The
former category includes any assets that are used
directly for conducting charitable activities, such as
office buildings, art held by museums, and computers.
Noncharitable-use assets are those assets held for
investment purposes only and may include such items
as securities, investments in art, coins, or other
collectables, and investments in real estate. For each
145
Domestic Private Foundations and Charitable Trusts, 2000
Figure G
Domestic Nonoperating Private Foundation Net Investment Income Yields and Rates of Total Return on
Assets, by Size of Fair Market Value of Total Assets, 2000
Asset-size
Median net investment Mean net investment
income yields
income yields
(percentages)
(percentages)
(1)
Total...........................................................................................................
(2)
6.0
Median rates of total
return (percentages)
Mean rates of total
return (percentages)
(3)
(4)
27.9
-0.2
-1.0
-1.0
10.4
0.4
1.7
-3.8
-0.3
Medium foundations:
$1,000,000 under $10,000,000...........................................................................................................
6.7
71.8
$10,000,000 under $50,000,000...........................................................................................................
7.4
12.0
-0.6
-0.3
0.2
0.6
Large foundations:
$50,000,000 under $100,000,000...........................................................................................................
7.7
12.0
-0.3
1.4
-0.6
-0.1
Small foundations:
Less than $100,000...........................................................................................................
5.3
$100,000 under $1,000,000...........................................................................................................
5.6
$100,000,000 or more...........................................................................................................
7.9
146
146
reporting year, nonoperating foundations must
calculate a “distributable amount,” based on the value
of their noncharitable-use assets. Noncharitable-use
cash and securities are valued, based on their average monthly values throughout the reporting year.
Other noncharitable-use assets are valued annually,
although not necessarily at year’s end. Based on the
total value of noncharitable-use assets, the organization must calculate its “minimum investment return,”
which equals 5 percent of noncharitable-use assets.
The minimum investment return is then adjusted by
incorporating certain required or allowed deductions,
to arrive at the distributable amount (see Distributable
(Payout) Amount, Minimum Investment Return, Net
Adjustments to Distributable Amount, and
Noncharitable-use Assets in the Explanation of
Selected Terms section).
Both “qualifying distributions” from the current
year and carryovers (distributions paid in excess of
the minimum required amount) from the previous five
years can be combined to meet the current year’s
distribution requirement. Qualifying distributions are
those made for charitable purposes and consist primarily of contributions, gifts, and grants disbursed
throughout the year. However, qualifying distributions may also include operating expenses related to
conducting its charitable operations; “set-asides,”
which are amounts earmarked for future charitable
distributions; program-related investments, such as
10.1
loans to other 501(c)(3) organizations; and amounts
paid to acquire buildings, equipment, supplies or other
assets for charitable-use. For Reporting Year 2000,
qualifying distributions for nonoperating foundations
totaled $29.8 billion, a 19-percent increase from 1999,
and outpaced the required distributable amount,
which rose by 12 percent to $20.5 billion. The majority of distributions were contributions and grants,
which represented 89 percent of qualifying distributions, followed by operating and administrative expenses, at 8 percent. Additionally, set-asides, program-related investments, and amounts paid to assets
for charitable-use, each accounted for 1 percent of
total qualifying distributions.
Qualifying distributions and their components,
along with distributable amounts, are shown for
foundations in various asset-classes, in Figure H.
Small foundations, which generally concentrate their
efforts on current rather than long-term charitable
giving, exceeded the distributable amount to the
greatest degree, with the smallest foundations, those
with less than $100,000 in fair market value of total
assets, surpassing the requirement by the largest
margin. Large foundations increased their qualifying
distributions by 16 percent over 1999, while both
small and medium foundations increased these distributions by more than 20 percent over the previous year.
Operating and administrative expenses, at $2.5
billion, represented 8 percent of the qualifying distri-
Domestic Private Foundations and Charitable Trusts, 2000
Figure H
Domestic Nonoperating Private Foundation Qualifying Distributions and Distributable Amount,
by Size of Fair Market Value of Total Assets, 2000
[Money amounts are in millions of dollars]
Qualifying distributions
Asset-size
Total
(1)
Charitable
Operating
grants
expenses
(2)
(3)
2,504.7
Total............................................................................................................................
29,845.5
26,551.8
Set-asides
Program-related Amounts paid to
investments
acquire assets
(4)
(5)
(6)
219.5
291.3
278.2
Distributable
amount
(7)
20,503.5
Small foundations:
913.8
14.7
Less than $100,000 ............................................................................................................................
928.5
1,269.2
90.7
$100,000 under $1,000,000............................................................................................................................
1,377.2
--
--
--
28.7
1.6
0.9
14.8
444.9
4,667.5
722.8
$1,000,000 under $10,000,000............................................................................................................................
5,483.5
20.2
4,844.7
315.7
$10,000,000 under $50,000,000............................................................................................................................
5,254.2
18.3
36.8
36.2
2,468.6
44.0
31.4
3,293.3
Medium foundations:
Large foundations:
2,226.4
158.2
$50,000,000 under $100,000,000............................................................................................................................
2,432.4
6.0
12,630.1
1,202.5
$100,000,000 or more............................................................................................................................
14,369.8
173.5
29.7
12.0
1,571.4
179.9
183.8
12,696.6
0.9
N/A
Percentage of total qualifying distributions
Total............................................................................................................................
100.0
89.0
8.4
0.7
1.0
Small foundations:
Less than $100,000 ............................................................................................................................
100.0
98.4
1.6
--
--
--
N/A
$100,000 under $1,000,000............................................................................................................................
100.0
92.2
6.6
0.1
0.1
1.1
N/A
Medium foundations:
$1,000,000 under $10,000,000............................................................................................................................
100.0
85.1
13.2
0.4
0.7
0.7
N/A
$10,000,000 under $50,000,000............................................................................................................................
100.0
92.2
6.0
0.3
0.8
0.6
N/A
$50,000,000 under $100,000,000............................................................................................................................
100.0
91.5
6.5
0.2
1.2
0.5
N/A
$100,000,000 or more............................................................................................................................
100.0
87.9
8.4
1.3
1.3
N/A
Large foundations:
1.2
N/A--Not applicable.
NOTE: Detail may not add to totals because of rounding and processing tolerances.
butions reported by private foundations for 2000 and
were the largest component of qualifying distributions
other than grants. Employee compensation, including
pension plans and other employee benefits, as well as
salaries and wages for employees other than officers, directors, and trustees, was the largest operating
expense for foundations, overall, representing 31
percent of administrative costs. Other expenses,
which included miscellaneous items such as advertising expenses, return filing fees, and office supplies
and equipment, accounted for the second-largest
portion of administrative expenses, representing 22
percent overall. Professional fees, which represented amounts paid for accounting, legal, and other
services accounted for an additional 18 percent of
administrative expenses. Compensation of officers,
directors, and trustees accounted for 13 percent of
administrative expenditures for all foundations.
Components of administrative expenses, by assetsize class, are shown in Figure I [12].
Employee compensation, excluding that paid to
officers, directors, and trustees, accounted for only
2 percent of operating expenses for small founda tions,
while medium and large foundations outlaid 34 percent
and 31 percent of their operating costs on employee
compensation, respectively. However, small foundations allocated 16 percent of administrative expenses
to compensation for officers, directors, and trustees,
a greater percentage than their larger counterparts.
The payout rate, which is the amount of (adjusted) qualifying distributions divided by noncharitable-use assets, provides insight into the degree to
which foundations meet their charitable payout requirement [13]. Median and mean payout rates for
2000, by size of foundation, are shown in Figure J.
The mean payout rates, which are notably larger than
147
Domestic Private Foundations and Charitable Trusts, 2000
Figure I
Components of Domestic Nonoperating Private Foundation Operating Expenses, by Asset-Size Class,
2000
[Money amounts are in millions of dollars]
All foundations
Small foundations
Medium foundations
Large foundations
All asset-size classes
FMV of total assets
Less than $1,000,000
FMV of total assets
$1,000,000 to less than
$50,000,000
FMV of total assets
$50,000,000 or more
(1)
(2)
(3)
(4)
1,038.6
133.8
307.2
43.7
31.3
31.3
101.2
14.6
24.2
37.2
30.1
61.8
222.1
1,360.7
162.5
298.0
127.4
21.9
15.0
201.9
9.4
15.0
82.7
86.4
35.7
304.8
Item
Total operating and administrative expenses ¹.......................................................................................................................
2,504.7
105.4
Compensation of officers.......................................................................................................................
312.9
16.6
Other employee salaries and wages.......................................................................................................................
607.4
2.2
Pension plans, employee benefits.......................................................................................................................
171.3
0.2
Legal fees.......................................................................................................................
59.3
6.1
Accounting fees.......................................................................................................................
68.6
22.2
Other professional fees.......................................................................................................................
316.9
13.8
Interest....................................................................................................................... 24.1
0.1
Taxes....................................................................................................................... 40.8
1.5
Occupancy.......................................................................................................................
120.9
1.0
Travel, conferences, and meetings.......................................................................................................................
120.5
4.0
Printing and publications.......................................................................................................................
101.8
4.3
Other expenses ¹.......................................................................................................................
560.3
33.3
¹ The data shown in this figure are based on amounts that foundations actually disbursed for charitable purposes in 2000 and exclude expenses that were not eligible as
qualifying distributions for the repoting year.
² Includes such items as advertising expenses, return filing fees, office supplies and equipment, and equipment rentals and maintenance.
148
the required amounts for small foundations, illustrate
the degree to which many smaller foundations exceeded the payout requirement. Median payout rates
were slightly higher than the required 5 percent for
most asset-size classes, while the smallest foundations, with a median rate of 12.3 percent, more than
doubled the required rate.
Figure J
Domestic Nonoperating Private Foundation
Payout Rates, by Size of Fair Market Value of
Total Assets, 2000
Asset size
Median payout
rates
(percentages)
Mean payout
rates
(percentages)
Total...........................................................
6.1
53.9
Small foundations:
Less than $100,000................................
12.3
146.1
$100,000 under $1,000,000...................
6.0
32.4
Medium foundations:
$1,000,000 under $10,000,000..............
5.3
16.0
$10,000,000 under $50,000,000............
5.3
12.6
5.3
5.2
8.4
6.9
Large foundations:
$50,000,000 under $100,000,000..........
$100,000,000 or more............................
148
UndistributedIncome
Foundations must meet the distributable amount
requirement for the current year by the end of the
next year or pay the excise tax on the undistributed
amount. For example, a foundation must have
disbursed the required amount for Reporting Year
2000 before the end of Reporting Year 2001 in order
to avoid paying the excise tax. As the required
distributable amount is not calculated until the end of
the reporting year and is based on the monthly
average of investment assets, many foundations
choose to take advantage of the 1-year tax-free
“grace period” for making these distributions and
report all or part of their current-year required
payouts as “undistributed income.” Of those foundations with a minimum payout requirement for
Reporting Year 2000, about 65 percent met or
exceeded the requirement during the reporting year.
Those foundations that did not meet this requirement
had until the end of the following reporting year to
distribute the remaining amount. Nearly 14 percent
of all nonoperating foundations made no grants for
Reporting Year 2000 and thus did not fulfill the
distributable amount requirement through the traditional grantmaking practice. Of these organizations,
16 percent reported “no distributable amount” and
therefore were not subject to the distribution require-
Domestic Private Foundations and Charitable Trusts, 2000
ment, while 42 percent satisfied the distribution
requirement through other types of charitable disbursements, including administrative and operational
expenses for charitable purposes, excess distributions
from previous years, program-related investments,
acquisition of charitable-purpose assets, and charitable “set-asides” for future projects. The remainder
of these organizations chose to fulfill the 2000 distribution requirement in their 2001 reporting years, or
to pay the tax on undistributed income, if applicable.
Large foundations, at 48 percent, were the most
likely of the three asset-size classes to elect to defer
the distribution requirement until 2001; about 44
percent of medium and 29 percent of small foundations also elected to meet the 2000 requirement in the
following year.
Undistributed income for 1999 was generally
taxed at a rate of 15 percent at the end of Reporting
Year 2000 [14]. In some cases, including 5-year
“startup” periods for new foundations and certain
types of organizational transitions or terminations,
1999 undistributed income was not subject to the
excise tax. Figure K shows undistributed income for
1999, as reported on both the 1999 and 2000 returns,
by foundation size. Of the $6.0 billion in undistributed
income reported for 1999, only $76 million, or 1 percent, still had not been distributed by the end of the
grace period. In cases where undistributed income
was subject to the excise tax, private foundations
used Form 4720 to report and pay any amounts due.
TenLargestDomesticFoundations
The largest foundations, those holding $100 million or
more in assets, held 62 percent of all assets, but
accounted for fewer than 600 filers, or less than 1
percent of all foundations. Additionally, the largest
organizations were responsible for 47 percent of all
grants paid. Ten foundations alone accounted for
one-third of the total assets held by the largest
domestic foundations. These foundations, along with
data on total assets and grants paid for 2000 are
shown in Figure L. Forms 990-PF differ from most
other IRS return data, since individual return information may be published. They are available for public
disclosure under IRC section 6104(b).
As in the previous year, the Bill and Melinda
Gates Foundation, which reported $21.1 billion in fair
market value of total assets, was the largest domestic
private foundation in Reporting Year 2000. Additionally, the J. Paul Getty Trust was the only operating
foundation included in the top ten.
The Bill and Melinda Gates Foundation and the
Ford Foundation led the largest foundations in charitable grants paid for 2000, disbursing $995 million and
$829 million, respectively. All of the ten largest
foundations paid out larger amounts in grants for
Figure K
Domestic Nonoperating Private Foundations: 1999 Undistributed Income Remaining
Undistributed by 2000, by Size of Fair Market Value of Total Assets
[Money amounts are in millions of dollars]
1999 Undistributed income
Asset size
1999 return
Number of returns
(1)
Total............................................................................................................................
21,430
2000 return
Amount
(2)
Number of returns
(3)
5,998.6
Amount
(4)
2,076
76.1
598
1,081
0.2
7.4
Medium foundations:
$1,000,000 under $10,000,000............................................................................................................................
7,179
678.5
352
16.3
$10,000,000 under $50,000,000............................................................................................................................
1,518
937.9
39
10.0
Large foundations:
$50,000,000 under $100,000,000............................................................................................................................
231
503.1
3
0.8
3
41.4
Small foundations:
Less than $100,000............................................................................................................................
4,521
6.0
$100,000 under $1,000,000............................................................................................................................
7,708
100.7
$100,000,000 or more............................................................................................................................
273
3,772.5
NOTE: Detail may not add to totals because of rounding and processing tolerances.
149
Domestic Private Foundations and Charitable Trusts, 2000
Figure L
of the organizations selected indicated that it was
terminating its private foundation status under IRC
Top Ten Domestic Private Foundations, by
section 507(b)(1)(A) or 507(b)(1)(B). Together, these
Size of Fair Market Value of Total Assets, 2000
50 foundations represented one-fourth of all aggre[Money amounts are in millions of dollars]
gate fair market value of total assets held and
Total
Total
one-fifth of all contributions, gifts, and grants distribName and ranking
State
grants
assets ¹
uted for Reporting Year 2000. Financial data for the
paid
(1)
(2)
(3)
50 largest organizations that appeared in each of
1. Bill & Melinda Gates Foundation........................................................................................
WA
21,149.1
994.9
Reporting Years 1999 and 2000 are shown in Figure
2. Lilly Endowment, Inc.........................................................................................
IN
15,591.7
583.3
M. The fair market value of total assets for this
3. Ford Foundation........................................................................................
NY
10,859.6
829.2
group of foundations grew 4 percent between
4. David and Lucile Packard Foundation........................................................................................
CA
9,806.3
533.6
Reporting Years 1999 and 2000. Additionally,
5. Robert Wood Johnson Foundation........................................................................................
NJ
8,800.6
351.4
6. J. Paul Getty Trust ²........................................................................................
CA
8,793.5
19.6
qualifying distributions; contributions, gifts, and
7. Starr Foundation........................................................................................
NY
6,257.8
192.5
grants; and operating and administrative expenses
8. W.K. Kellogg Foundation Trust
paid by this group each increased by 21 percent.
and W.K. Kellogg Foundation ³........................................................................................
5,719.7
179.4
NY/MI
Payout rates remained relatively constant for both
9. Andrew W. Mellon Foundation........................................................................................
NY
4,889.9
205.9
10. John D. and Catherine T.
years, with average payout increasing slightly over
MacArthur Foundation........................................................................................
IL
4,479.2
164.0
the period.
Total.................................................................
96,347.4
4,053.8
¹ Fair market value.
150
² The J. Paul Getty Trust is an operating foundation. All other organizations listed are
nonoperating foundations.
³ The W.K. Kellogg Foundation Trust (classified as a private foundation and not as a
section 4947(a)(1) charitable trust) is located in New York and has a "pass-through"
relationship with the W.K. Kellogg Foundation, located in Michigan. Typically, the
entire amount of the annual qualifying (charitable) distributions of the W.K. Kellogg
Foundation Trust is made in the form of a grant to the W.K. Kellogg Foundation, which
then redistributes the grant for charitable purposes. The combined total assets of the
two organizations are shown in the "Total assets" column, but, in order to avoid
duplication, only the grants paid by the W.K. Kellogg Foundation are shown in the
"Total grants paid" column.
NOTE: Detail may not add to totals due to rounding.
2000 than for the previous year. The largest increase, 81 percent, was reported by the Bill and
Melinda Gates Foundation [15].
150
LargeNonoperatingDomesticFoundations
In light of the substantial impact of the largest foundations on the statistics presented in this article, their
behavior and financial indicators provide a wealth of
data on factors affecting private foundations. Nonoperating foundations represent most financial
activity by foundations and are responsible for all of
the required grants and expenditures made by
foundations each year. For Reporting Years 1999
and 2000, some 50 of the largest nonoperating
foundations were examined to determine their
financial activities over a 2-year period. They
represent the largest 50 nonoperating private foundations that appeared in the Statistics of Income
samples for both 1999 and 2000. Additionally, none
Section4947(a)(1)NonexemptCharitable
Trusts
DefinitionandOverview
Unlike IRC section 501(c)(3) organizations such as
private foundations, charitable trusts described under
IRC section 4947(a)(1) are not formally recognized
by the Internal Revenue Service as tax-exempt.
These organizations resemble private foundations in
that they have exclusively charitable purposes, have
narrow bases of support and control, and are required
to file Form 990-PF. Generally, these types of
organizations are supported and controlled by an
individual or family. Any income, which is not
distributed for charitable purposes, is annually subject
to tax that is reported on Form 1041, Fiduciary
Income Tax Return; no data on income taxes are
included in this article.
Also not covered in this article are publicly supported IRC section 4947(a)(1) charitable trusts and
split-interest trusts. Publicly supported IRC section
4947(a) (1) charitable trusts, which receive the majority of their support from public (rather than private)
sources, file Form 990. These trusts typically operate
in connection with, and provide support to, tax-exempt organizations other than private foundations.
Entities known as split-interest trusts, which have
both charitable and noncharitable beneficiaries, complete Form 5227, Split-Interest Trust Information
Return [16]. As with private foundations, data for
Domestic Private Foundations and Charitable Trusts, 2000
Figure M
Fifty Largest Domestic Nonoperating Private Foundations, by Size of Fair Market Value of
Total Assets: Selected Financial Items and Percentage Changes, 1999-2000
[Money amounts are in millions of dollars]
Item
1999
2000
Percentage
change,
1999-2000
(1)
(2)
(3)
Total assets (fair market value).................................................................................................
152,710.0
158,717.5
Investments in securities, total.................................................................................................
125,173.8
133,811.8
3.9
6.9
Government obligations.................................................................................................
15,471.6
Corporate stock.................................................................................................
98,883.3
Corporate bonds................................................................................................. 10,818.9
18,762.4
98,688.7
16,360.7
21.3
-0.2
51.2
Net investment income.................................................................................................23,772.5
17,123.0
-28.0
Excise tax on net investment income.................................................................................................
280.2
215.1
-23.2
Net value of noncharitable-use assets.................................................................................................
135,689.8
155,220.2
14.4
6,373.4
7,598.9
19.2
Qualifying distributions................................................................................................. 6,509.7
7,853.0
20.6
6,927.7
603.3
20.6
21.1
Distributable amount.................................................................................................
Contributions, gifts, and grants paid ¹.................................................................................................
5,742.3
Operating expenses ¹.................................................................................................
498.1
Median payout rate.................................................................................................
5.0
5.0
--
Mean payout rate.................................................................................................
5.1
5.2
2.0
¹ Includes amounts that foundations actually disbursed, on a cash basis.
charitable trusts organized abroad but required to file
Form 990-PF are not included in this article.
IRC section 4947(a)(1) charitable trusts represented only 4 percent of Forms 990-PF filed for
2000. These organizations filed 2,966 returns, 6
percent more than for 1999. Data on the number of
returns filed, as well as asset, revenue, and expense
items for 1999 and 2000, are shown in Figure N.
The majority of these organizations, 96 percent, were
classified as nonoperating. Additionally, 87 percent
made contributions, gifts, or grants for 2000 and were
thus categorized as grantmaking.
CharitableTrustsRevenueandAssets
Total revenue, reported by charitable trusts fell 2
percent to $595 million, between 1999 and 2000.
This decline was prompted by a 10-percent decrease
in the largest component of revenue, net gain from
sales of assets. This category, along with contributions received and dividends and interest from
securities, comprised 93 percent of all revenue
earned for Reporting Year 2000. Dividends and
interest from securities increased by 7 percent, while
contributions received, recovering from a 15-percent
drop between 1998 and 1999, increased by 13 percent.
Despite a 10-percent decline in net gain from
sales of assets, it remained the largest component of
Figure N
Domestic IRC Section 4947(a)(1) Charitable
Trusts: Selected Financial Items and Percentage
Changes, 1999-2000
[Money amounts are in millions of dollars]
Percentage
Item
1999
2000
change,
1999-2000
(1)
(2)
(3)
Number of trusts..........................................................................................................................
2,805
2,966
5.7
Total assets (fair market value)..........................................................................................................................
5,326.6
4,990.5
-6.3
Cash (noninterest bearing accounts)..................................................................................................................
31.9
31.3
-1.9
Investments, total..........................................................................................................................
5,193.1
4,860.9
-6.4
Savings and temporary cash investments......................................................................................................
264.4
287.6
8.8
Investments in securities, total........................................................................................................................
4,195.1
4,009.7
-4.4
Government obligations..........................................................................................................................
490.2
523.6
6.8
Corporate stock..........................................................................................................................
2,974.1
2,727.7
-8.3
Corporate bonds..........................................................................................................................
730.8
758.4
3.8
Other investments ¹..........................................................................................................................
733.6
563.6
-23.2
Total revenue..........................................................................................................................
609.3
595.0
-2.3
Contributions, gifts, and grants received...........................................................................................................
108.8
123.3
13.3
Net gain (less loss) from sales of assets...........................................................................................................
313.7
281.4
-10.3
Dividends and interest from securities...............................................................................................................
139.5
149.7
7.3
Total expenses..........................................................................................................................
281.5
327.2
16.2
Disbursements for exempt purposes ...................................................................................................................
244.0
289.8
18.8
Contributions, gifts, and grants paid ² ...............................................................................................................
228.3
270.6
18.5
¹ Sum of "Investments in land, buildings, and equipment (less accumulated
depreciation)," "Investments in mortgage loans," and "Other investments," as reported
on Form 990-PF. "Other investments" includes such items as advances and
certificates of investment.
² Includes amounts that charitable trusts actually disbursed, on a cash basis.
151
Domestic Private Foundations and Charitable Trusts, 2000
Figure O
Sources of Domestic IRC Section 4947(a)(1)
Charitable Trust Revenue, 2000
4%
3%
21%
$595.0 Million
47%
25%
Contributions, gifts, and
grants received
Net gain (less loss)
from sales of assets
Dividends and interest
from securities
Other interest
Other income
returns filed, represented only 12 percent of total
asset holdings. In contrast, nearly half of total asset
holdings were reported by large trusts, which represented less than 3 percent of these organizations [17].
Like private foundations, charitable trusts hold
the majority of assets as investments. Investments
represented 97 percent of the aggregate fair market
value of total assets held by charitable trusts for
2000; stocks represented the majority of these investments. The composition of charitable trust investment
assets is shown in Figure P. Corporate bonds, at 16
percent, was the second-largest investment category.
CharitableTrustDistributions
There were $271 million in contributions, gifts, and
grants paid by section 4947(a)(1) trusts for 2000,
about 19 percent more than for 1999. Nonoperating
charitable trusts paid out $287 million in qualifying
Figure P
1
2
Composition of Domestic IRC Section 4947(a)(1)
Charitable Trust Investment Assets, 2000
152
¹ Represents "Interest on savings and temporary cash investments," as reported on
Form 990-PF.
² Includes "Gross rents and royalties" and "Gross profit (or loss) from business
activities" as reported on Form 990-PF, as well as such items as imputed interest on
deferred payments and program-related investment income.
152
charitable trust revenue, representing 47 percent of
the total, as shown in Figure O. Dividends and
interest from securities, at 25 percent, and contributions, gifts, and grants received, at 21 percent, constituted second- and third-largest components of total
revenue, respectively.
Net investment income totaling $482 million was
reported for 2000. Like foundations, most charitable
trusts are required to pay an excise tax on their net
investment incomes. For 2000, about $6 million in
excise tax were reported by charitable trusts filing
Form 990-PF. Of the charitable trusts that reported
this tax, 48 percent qualified for the reduced rate of 1
percent, while most others paid tax of 2 percent on net
investment income.
For 2000, assets held by charitable trusts totaled
$5.0 billion, a 6-percent decrease from 1999. Small
charitable trusts, which accounted for 75 percent of
11%
6%
11%
$4.9 Billion
56%
16%
Corporate stock
Corporate bonds
Savings and temporary cash investments
Government obligations
Other investments¹
¹ Sum of "Investments in land, buildings, and equipment (less accumulated
depreciation)," "Investments in mortgage loans," and "Other investments," as reported
on Form 990-PF. "Other investments" includes such items as advances and certificates
of investment.
NOTE: Amounts of investment assets are shown in fair market value.
Domestic Private Foundations and Charitable Trusts, 2000
distributions, 94 percent of which consisted of grants.
Charitable trusts in each of the three asset-size
classes distributed more than the required minimum
amounts, with small and medium trusts, at 42 percent
and 29 percent, respectively, distributing well more
than required. Large trusts made distributions that
exceeded the distributable amount by 4 percent.
Figure Q
Coefficients of Variation for Selected Items, by
Type of Organization, 2000
Item
Private
Charitable
foundations
trusts
Coefficients of variation
(percentages)
DataSourcesandLimitations
Total assets (fair market value)........................................................................................................
0.66
0.50
The statistics in this article are based on a sample of
Reporting Year 2000 Forms 990-PF that were filed
with the Internal Revenue Service. Organizations
having accounting periods beginning in 2000 (and
therefore ending between December 2000 and
November 2001) were required by IRS to file Form
990-PF. Some part-year returns were included in the
samples for organizations that changed their accounting periods, or filed initial or final returns. Some 67
percent of the domestic private foundations in the
sample had accounting periods covering Calendar
Year 2000 or, in some cases, part-year periods that
ended in December 2000. For domestic charitable
trusts, 61 percent filed calendar year returns. The
2000 sample was stratified, based on both the size of
fair market value of total assets and the type of
organization (either a private foundation or a
4947(a)(1) charitable trust).
Foundation returns were selected at rates that
ranged from approximately 0.3 percent (for the more
numerous but very small asset-size foundations) to
100 percent (for the relatively few foundations with
large amounts of assets). Charitable trust returns
were selected at rates that ranged from 1.3 percent
to 100 percent. The 8,202 returns in the sample
(7,236 foundations and 966 trusts) were drawn from
an estimated population of 69,575 foundations and
3,030 trusts. The magnitude of sampling error for
selected items, measured by coefficients of variation,
is shown in Figure Q.
The samples were designed to provide reliable
estimates of total assets and total revenue. To accomplish this, 100 percent of returns filed for foundations with fair market asset value of $10 million or
more and 100 percent of returns filed for charitable
trusts with fair market asset value of $1 million or
more were included in the samples, since these
organizations represented the vast majority of financial activity. Efforts were made to verify that organizations that were selected for the sample were prop-
Total revenue...........................................................................................................
1.50
1.30
Total expenses...........................................................................................................
2.84
1.14
erly classified as foundations or trusts. The relatively
few foundations in the sample that were incorrectly
selected as trusts were ultimately reclassified as
foundations (for the statistics), using identification
codes from the IRS Exempt Organization Master
File. However, the weights used for these organizations were based on the original sample selection
classification. These same methods were used for
the trusts that were incorrectly sampled as foundations.
Approximately 7 percent of all foundations,
including those reclassified as foundations, reported
$10 million or more in fair market value of total
assets for 2000. While these foundations were
selected at a rate of 100 percent, the remaining
foundation population was randomly selected for the
sample at various rates of less than 100 percent
depending on asset size. The realized sampling rates
for each asset-size category were: 0.3 percent for
returns with total assets of zero, unreported, or less
than $125,000; 0.8 percent for returns with assets of
$125,000 to less than $400,000; 1.9 percent for returns with assets of $400,000 to less than $1 million;
4.3 percent for returns with assets of $1 million to
less than $2.5 million; and 21.0 percent for returns
with assets of $2.5 million to less than $10 million.
Approximately 25 percent of all 4947(a)(1)
charitable trusts reported $1 million or more in fair
market value of total assets for 2000. While these
trusts were selected at a rate of 100 percent, the
remaining trust population was randomly selected for
the sample at various rates of less than 100 percent
depending on asset size. The realized sampling rates
were 1.2 percent for returns with total assets of zero,
unreported, or less than $100,000; and 13.4 percent for
returns with assets of $100,000 to less than $1 million.
153
Domestic Private Foundations and Charitable Trusts, 2000
The population from which the 2000 sample was
drawn consisted of Form 990-PF records posted to
the IRS Business Master File during 2000 and 2001.
Some of the records designated were for organizations that were deemed inactive or terminated and
are not reflected in the estimates. The data presented were obtained from returns as originally filed
with IRS. In most cases, changes made to the original return because of administrative processing, audit
procedures, or a taxpayer amendment were not
captured in the statistics. The data were subject to
comprehensive testing and correction procedures in
order to ensure statistical reliability and validity.
Some returns, though initially included in the sample,
were “rejected” during the data entry process for
various reasons, such as duplicate filing or
uncorrectable taxpayer error. A general discussion
of the reliability of estimates based on samples,
methods for evaluating both the magnitude of sampling and nonsampling error, and the precision of
sample estimates can be found in the general Appendix to this issue of the SOI Bulletin.
ExplanationofSelectedTerms
154
154
The following explanations describe terms as they
applied to both private foundations and charitable
trusts for 2000. Unless otherwise indicated, all
references to foundations also apply to trusts.
Assets Zero or Unreported.--This asset-size
category included: (1) final returns of liquidating or
dissolving foundations that had disposed of all assets;
(2) returns of those foundations reporting zero endof-year assets that had apparently distributed (or
disposed of) all assets received during the year; and
(3) returns of those foundations that did not report
assets. A liquidating or dissolving foundation is
required to transfer its assets on to another foundation or other tax-exempt organization.
Capital Gain Net Income.--This is the amount
of net gains from sales or dispositions of property
used for investment purposes (property used for
charitable purposes was excluded). Capital losses
from the sale or other disposition of property could be
subtracted from capital gains only to the extent of
such gains. Capital gain net income was used in the
computation of “net investment income” (on which
an excise tax generally had to be paid). In contrast,
the net gain (or loss) per the books from the sale of
all assets (other than inventory), including those used
for both investment and charitable purposes, was
reported as “net gain (or loss) from the sale of assets” on Form 990-PF, Part I, line 6, column (a).
This item, capital gain net income, was reported on
Form 990-PF, Part I, line 7, column (b).
Charitable Trust.--A charitable trust, also referred to as a “nonexempt” charitable trust, is defined in Internal Revenue Code section 4947(a)(1) as
an organization: (1) that is not considered tax-exempt
under section 501(a); (2) that has exclusively charitable interests; and (3) that has amounts in trust for
which donors are allowed to claim a tax deduction for
charitable contributions. Nonexempt charitable trusts
that are not publicly supported are subject to the
excise tax provisions that apply to private foundations
and are required to file the same Form 990-PF.
(“Publicly supported” nonexempt charitable trusts are
required to file Form 990, Return of Organization
Exempt From Income Tax, and are, therefore, not
included in the statistics presented in this article.)
Nonexempt charitable trusts that are treated as
private foundations must pay an annual tax on income
(usually from investments) that is not distributed for
charitable purposes, and they must report such income and tax on Form 1041, U.S. Fiduciary Income
Tax Return. Data from this form are not included in
this article.
Disbursements for Exempt Purposes.--These
disbursements comprised the largest component of
“qualifying distributions” and included grants paid,
operating expenses, and necessary and reasonable
administrative expenditures for activities that were
directly related to the tax-exempt purposes of the
foundation. These amounts were determined solely
based on the cash receipts and disbursements method
of accounting, as required by law and regulations.
This item was reported on Form 990-PF, Part I, line
26, column (d).
Disqualified Person.--In general, a disqualified
person is a substantial contributor; a foundation
manager; a person who owns more than 20 percent
of a corporation, partnership, trust, or unincorporated
enterprise that is itself a substantial contributor; or a
family member of one of the types of disqualified
persons described above.
Distributable (Payout) Amount.--This is the
minimum payout amount that was required to be
Domestic Private Foundations and Charitable Trusts, 2000
distributed by nonoperating foundations or charitable
trusts by the end of the year following the year for
which the return was filed. Failure to distribute
income within this period resulted in a 15-percent
excise tax on the undistributed portion. The distributable amount was computed as 5 percent of noncharitable-use assets, called the “minimum investment return,” minus the excise tax on net investment
income and the income tax under Subtitle A where
applicable to nonexempt charitable trusts, plus or
minus other adjustments, either allowed or required
(see Net Adjustments to Distributable Amount in
this section).
Excess Distributions Carryover.--This is the
amount distributed, after fulfilling the charitable payout requirement, which equaled the excess of qualifying distributions for 2000 over the distributable amount.
If necessary, excess amounts from the current year
could be carried forward to be applied to the distributable amount for the 5 following years. This item
was reported on Form 990-PF, Part XIII, line 9.
Grantmaking Foundations (and Charitable
Trusts).--For the statistics in this article, grantmaking
foundations and trusts are those organizations that
reported $1 or more in contributions, gifts, and grants
paid for charitable purposes on Form 990-PF, Part I,
line 25, column (d).
Land, Buildings, and Equipment, CharitableUse.--This represents either the book value (less
accumulated depreciation) or fair market value of all
land, buildings, and equipment not held for investment
purposes and used by the organization in conducting
its charitable activities. This item was reported on
Form 990-PF, Part II, line 14, columns (a) beginningof-year book value, (b) end-of-year book value, and
(c) end-of-year fair market value.
Land, Buildings, and Equipment, InvestmentUse.--This represents either the book value (less
accumulated depreciation) or fair market value of all
land, buildings, and equipment held for investment
purposes, such as rental properties. This item was
reported on Form 990-PF, Part II, line 11, columns
(a) (beginning-of-year book value), (b) (end-of-year
book value), and (c) (end-of-year fair market value).
Minimum Investment Return.--The minimum
investment return was used as the base for calculating the “distributable amount.” This is the aggregate
fair market value of assets not used for charitable
purposes, less both the indebtedness incurred to
acquire these assets and the cash held for charitable
activities, multiplied by 5 percent. This item was
reported on Form 990-PF, Part X, line 6.
Net Adjustments to Distributable Amount.-Adjustments that increased the “distributable
amount” consisted of increases attributable to the
income portion (as distinct from the principal portion)
of distributions from split-interest trusts on amounts
placed in trust after May 26, 1969. Trusts with “splitinterests” are those that have both charitable and
noncharitable beneficiaries. These organizations file
Form 5227, Split-Interest Trust Information Return.
Recoveries of amounts previously treated as qualifying distributions also had to be added back to the
distributable amount. Adjustments that decreased the
distributable amount were the result of income required to be accumulated by the terms of an
organization’s governing instrument. These adjustments were allowed only for foundations or trusts
organized before May 27, 1969, whose governing
instrument continued to require such accumulation,
because State Courts would not allow the organization to change its governing instrument. These items
were reported on Form 990-PF, Part XI, lines 4a, 4b,
and 6.
Net Gain (or Loss) from Sales of Assets.-Profits and losses from sales of items such as securities, land, buildings, or equipment are included in this
item. Gain or loss reflected the amount shown on the
books of the foundation and included any amount
from the sale of property used for either investment
or tax-exempt charitable purposes. Most of the gain
or loss was from sales of stocks and bonds. Profit or
loss from the sale of inventory items was not included
in this item, but was rather included in gross profit
(loss) from business activities. Net gain (or loss)
from sales of assets was reported on Form 990-PF,
Part I, line 6, column (a).
Net Investment Income.--This is the amount by
which the sum of gross investment income plus
realized capital gain net income exceeds allowable
deductions. Included in investment income were
interest, dividends, capital gain net income, rents,
payments with respect to securities loans (as defined
in Code section 512(a)(5)), and royalties. Any investment income derived from unrelated trade or
business activities that were subject to the “unrelated
155
Domestic Private Foundations and Charitable Trusts, 2000
156
156
business income” tax reported on Form 990-T, Exempt Organization Business Income Tax Return,
was excluded. This item was reported on Form 990PF, Part I, line 27b, column (b).
Noncharitable-use Assets.--This item was
reported on Form 990-PF, Part X, line 5 and is the
basis for “minimum investment return.” For purposes
of calculating the “minimum investment return,”
valuation methods for noncharitable-use assets reported in this section differ from those used to report
the end-of-year fair market values for all assets in
Part II. For securities and cash, the average (based
on the monthly values), rather than end-of-year, fair
market value of cash and securities that were not
used or held for use for charitable purposes is calculated. With certain exceptions, other assets included
in this calculation are valued annually, but not necessarily based on the end-of-year value. An asset was
considered a noncharitable-use asset if it was not
used in carrying out a charitable, educational, or other
similar function which gave rise to the tax-exempt
status of the foundation. Examples include the fair
market value of securities and rental property owned
by the foundation for investment purposes. This item
differs from the asset amounts reported on the balance sheet in Part II of Form 990-PF, which included
end-of-year values for both investment and charitable-use assets.
Nonoperating Foundations (and Charitable
Trusts).--These are organizations that generally
carried on their charitable activities in an indirect
manner by making grants to other organizations
directly engaged in charitable activities, in contrast to
operating foundations and trusts that engaged in
charitable activities themselves. However, some
nonoperating foundations and trusts may have been
actively involved in charitable programs of their own,
in addition to making grants. For example, a foundation organized as operating that was unable to meet
the operating foundation requirements for Reporting
Year 2000 could have continued its direct charitable
activities, in addition to making the required charitable
expenditures. An organization’s status as a nonoperating foundation or trust was indicated on Form 990PF, Part VII, line 9.
Operating Foundations (and Charitable
Trusts).--These organizations generally expended
their income for direct, active involvement in a tax-
exempt activity, such as operating a library or museum, or conducting scientific research. Operating
foundations and trusts were exempted from the
income distribution requirement and related excise
taxes that were applicable to their nonoperating
counterparts. To qualify as an operating foundation
or trust for 2000, the organization had to meet both an
“income test” and one of three other tests: an “assets
test,” an “endowment test,” or a “support test.”
A foundation or trust could qualify as operating
under the income requirement if it spent at least 85
percent of the lesser of its “adjusted net income” or
“minimum investment return” on the direct, active
conduct of tax-exempt, charitable activities (as opposed to the payout of grants in support of such
programs). To meet the assets test, a foundation or
trust had to directly use 65 percent or more of its
assets for the active conduct of charitable activities.
To meet the endowment test, a foundation or trust
had to regularly make distributions for the active
conduct of charitable activities in an amount not less
than two-thirds of its “minimum investment return.”
To meet the support test, a foundation or trust had to
regularly receive substantially all of its support (other
than from gross investment income) from the public
or from five or more qualifying exempt organizations,
and (a) no more than 25 percent of its support (other
than from gross investment income) from any one such
qualifying exempt organization; and (b) no more than
50 percent of its support from gross investment income.
Individual taxpayers could deduct contributions to
operating foundations or trusts on their individual
income tax returns; the deduction could not exceed
50 percent of a donor’s “adjusted gross income” (as
opposed to 30 percent for contributions to nonoperating foundations).
While most operating foundations paid the excise
tax on net investment income, 15 percent of operating
foundations were exempt from this tax for 2000
under section 4940(d)(2) of the Internal Revenue
Code. In order to be exempt, an operating foundation
was required to meet the following requirements in
any given year: (1) maintain public support for a
minimum of 10 taxable years; (2) maintain a governing body at all times that is broadly representative of
the general public and that is comprised of no more
than 25 percent of disqualified individuals; and (3) at
no time during the year include a disqualified indi-
Domestic Private Foundations and Charitable Trusts, 2000
vidual as an officer of the foundation. An
organization’s status as an operating foundation or
trust was indicated on Form 990-PF, Part VII, line 9.
Other Assets.--This category includes: (1) those
assets not allocable to a specific asset item on the
Form 990-PF balance sheet or not included elsewhere on the return; and (2) certain amounts given
special treatment in the course of statistical processing. The first category included such items as dividends receivable, escrow deposits, income tax refunds, interest discounts, interest-free loans, overdraft
protection, and program-related investments. The
second category included atypical amounts reported
by the return filer as “negative liabilities.” These
items were reported on Form 990-PF, Part II, line 15,
columns (a) beginning-of-year book value, (b) end-ofyear book value, and (c) end-of-year fair market value.
Other Investments.--Investments reported as
“other” include such items as advances, bank certificates of deposit, cash values of life insurance, certificates of investment, miscellaneous loan income, and
holdings in art, coins, gold, and gems. These items
were reported on Form 990-PF, Part II, line 13,
columns (a) beginning-of-year book value, (b) end-ofyear book value, and (c) end-of-year fair market value.
Private Foundation.--A private foundation is
defined in Internal Revenue Code section 501(c)(3)
as a nonprofit organization with a narrow source of
funds that operated or supported educational, scientific, charitable, religious, and other programs dedicated to improving the general welfare of society. A
private foundation qualified for tax-exempt status
under Code section 501(c)(3) but was not (1) a
church, school, hospital, or medical research organization; (2) an organization with broad public support
in the form of contributions or income from
tax-exempt activities; (3) an organization that was
operated by, or in connection with, any of the above
described organizations; or (4) an organization that
conducted tests for public safety. The primary difference between a private foundation and other
organizations exempt under 501(c)(3) was the source
of the organization’s funding. Foundations were
typically funded by an individual, a family, or a corporation, while most other tax-exempt organizations
received funds from a large number of sources
among the general public.
Qualifying Distributions.--Qualifying distributions include disbursements for charitable purposes
(grants, direct expenditures to accomplish charitable
purposes, and charitable-purpose operating and
administrative expenses); amounts paid to acquire
assets used directly to accomplish tax-exempt functions; charitable program-related investments; and
amounts set aside for future charitable projects.
Qualifying distributions could be credited against the
foundation’s or trust’s obligation to pay out its “distributable amount.” This item was reported on Form
990-PF, Part XII, line 4.
Rate of Total Return.--The formula for the rate
of total return was calculated as follows:
Rate of Total Return =
[Ending Fair Market Value of Assets
- Indexed Beginning Fair Market Value of Assets
- Contributions Received
+ Grants Paid
+ Operating and Administrative Expenses
+ Excise Tax Paid on Net Investment Income]
DIVIDED BY
———————————————————
[Indexed Beginning Fair Market Value of Assets
+ 50 percent of Contributions Received]
To calculate the rate of total return shown in
Figure G, samples of private foundation information
returns for 1999 and 2000 were matched in order to
analyze both the beginning and end-of-year fair
market value data.
The beginning fair market value of assets for
2000 equals the ending fair market value reported on
the 1999 tax return. Thus, in order to provide a
consistent form of measurement by which to compare rates of total return among different years, the
ending fair market value of asset amounts (reported
for both the year subject to the computation and the
prior year) were used to compute the rate of return.
In order to obtain an inflation-adjusted real rate of
return, the beginning-of-year fair market value of
assets was indexed, based on the 1996 chain-type
price index for Gross Domestic Product as published
by the Bureau of Economic Analysis, using 2000 as
the base year.
Set-Asides.--Amounts set aside for specific
charitable purposes can be treated as qualifying
distributions only if the foundation or charitable trust
157
Domestic Private Foundations and Charitable Trusts, 2000
158
158
establishes to the satisfaction of the IRS that the
amount will be paid for the specific project within 60
months from the date of the first set-aside and if the
foundation meets either the suitability test or the cash
distribution test. To meet the suitability test, a foundation must receive prior approval from the IRS and
must demonstrate that the project can be better
accomplished by a set-aside than by an immediate
payment of funds. To meet the cash distribution test
under IR Code section 4942(g)(2)(B)(ii), a foundation
must attach a schedule with its annual return for the
year of the set-aside and for each subsequent year
until the set-aside amount has been distributed. Setasides were reported on Form 990-PF, Part XII, lines
3a and 3b.
Total Assets.--This is the sum of all assets reported in the foundation’s balance sheet, shown at
both book value and fair market value. Total assets
were reported on Form 990-PF, Part II, line 16,
columns (a) beginning-of-year book value, (b) end-ofyear book value, and (c) end-of-year fair market value.
Total Expenses.--These are the sum of contributions, gifts, and grants paid, plus various operating and
administrative expenses related to both investment
and charitable-purpose activities. Total expense
items were reported as shown on the books and
records of the foundation and were based on either
the cash receipts and disbursement method or the
accrual method of accounting. Total expenses were
reported on Form 990-PF, Part I, line 26, column (a).
Total Revenue.--This is the sum of gross contributions, gifts, and grants received; interest on savings
and temporary cash investments; dividends and
interest from securities; net gain (or loss) from sales
of assets (mostly investment assets, but also charitable-use assets); gross rents and royalties; gross
profit (or loss) from business activities; and other
income (such as royalty income, program-related
investment income, interest earned on assets used for
charitable purposes, and imputed interest on certain
deferred payments). These other income items were
reported on Form 990-PF, Part I, line 11, column (a).
Total revenue items, which included both investment
and charitable-use items, were reported as shown on
the books and records of the foundation, and were
based on either the cash receipts and disbursements
method or the accrual method of accounting. Total
revenues were reported on Form 990-PF, Part I, line
12, column (a).
Undistributed Income.--This is the portion of
the required “distributable amount” still undistributed
after applying against it the sum of current-year
qualifying distributions and any excess distributions
carried over from prior years. This item was reported on Form 990-PF, Part XIII, line 6f, column
(d). Sanctions were imposed in the form of excise
taxes on nonoperating private foundations that did not
pay out an amount equal to the “distributable amount”
by the end of the following tax year. The tax on undistributed income, imposed on the initial undistributed
amount at the 15-percent rate, is reported on Form
4720.
Unrelated Business Income (UBI).--This is an
exempt organization’s income from a trade or business that was regularly carried on by the organization
and that was not substantially related to the performance of the organization’s exempt purpose or
function (other than that the organization needed the
profits derived from the unrelated activity). The term
“trade or business” generally comprised any activity
carried on for the production of income from selling
goods or performing services. A tax, as reported on
Form 990-T, Exempt Organization Business Income Tax Return, is imposed on “unrelated business
taxable income (UBTI).” Unrelated business taxable
income is gross unrelated business income, less deductions directly connected with carrying on the trade or
business, and less certain other deductions. The
unrelated business income tax was determined, based
on the corporate or trust tax rates that were in effect
for a given tax year. (Gross) unrelated business income
and the associated business codes were reported on
Form 990-PF, Part XVI-A, columns (a) and (b).
NotesandReferences
[1] For complete information on Forms 990-PF filed
for Reporting Year 1999, see Ludlum, Melissa,
“Private Foundations and Charitable Trusts,
1999,” Statistics of Income Bulletin, Fall 2002,
Volume 22, Number 2.
[2] The amount of contributions, gifts, and grants paid
by foundations reflects the amount that foundations actually disbursed, on a cash basis, for 2000.
[3] For purposes of the analyses, “charitable trusts”
refers only to the section 4947(a)(1) charitable
trusts that file Form 990-PF, while “private
Domestic Private Foundations and Charitable Trusts, 2000
foundations” refers to the section 501(c)(3)
private foundations that file Form 990-PF.
[4] Programs termed “charitable” refer to tax-exempt
activities that are charitable, educational,
scientific, social, literary, or religious in nature.
[5] For an indepth discussion of organizations other
than private foundations that are tax-exempt
under Internal Revenue Code section
501(c)(3), see Arnsberger, Paul, “Charities and
Other Tax-Exempt Organizations, 2000,”
Statistics of Income Bulletin , Fall 2003, Volume
23, Number 2.
[6] For more information on the unrelated business
income of exempt organizations, see Riley,
Margaret, “Unrelated Business Income of
Nonprofit Organizations: 1999,” Statistics of
Income Bulletin, Spring 2003, Volume 22,
Number 4.
[7] Foreign foundations, which are organized
abroad but required to file Form 990-PF and
pay excise taxes on net investment income, are
subject to a 4-percent tax on the value of their
U.S.-based net investment income.
[8] The J. Paul Getty Trust, the largest operating
foundation, is exempt from the excise tax on net
investment income.
[9] Data included in the “Foundation Assets and
Investments, Constant Dollar Analysis” and in
Figure E differ from those presented in other
sections and figures of this paper because they
have been adjusted for inflation. Reporting
Year 1999 investment totals were adjusted,
based on the 1996 chain-type price index for
Gross Domestic Product as reported by the
U.S. Department of Commerce, Bureau of
Economic Analysis, using 2000 as the base
year. Unless otherwise noted, all other data
are in current dollars.
[10] The net investment income amount used in
calculating the NII yield was obtained from
column (b) of the income statement, found in
Part I of Form 990-PF.
[11] The rate-of-total-return formula used here is
the same as that developed and used by
Salamon and Voytek in their studies on foundation assets. See Salamon, Lester M. and
Voytek, Kenneth P. (1989), Managing Foundation Assets: An Analysis of Foundation
Investment and Payout Procedures and
Performance, Washington, DC, The Council on
Foundations, p. 32. The formula for this
calculation is presented in the Explanation of
Selected Terms section of this article. The
indexed beginning-of-year fair market value of
assets amount is adjusted, based on the 1996
chain-type price index for Gross Domestic
Product as reported by the U.S. Department of
Commerce, Bureau of Economic Analysis.
[12] Additional time-series data, including both
current and constant dollar amounts for operating and administrative expenses, qualifying
distributions, and distributable amounts, may be
accessed via the Internet at www.irs.gov/
taxstats under the Tax Exempt/Employee Plans
Statistics topic heading.
[13] The payout rate was calculated by dividing the
amount of (adjusted) qualifying distributions by
the value of noncharitable-use assets. This
payout formula is as follows:
Qualifying Distributions (Part XII, line 4) +
Taxes (Part XI, line 2c) – Recoveries of
Amounts Treated as Qualifying Distributions
and Income Distributions from Split-Interest
Trusts (Part XI, line 4c) + Deduction from
Distributable Amount (Part XI, line 6) + Excess
Distributions Applied to 2000 (Part XIII, Col. A,
line 5)
DIVIDED BY
Net value of Noncharitable-use Assets (Part X,
line 5)
[14] The excise tax on undistributed income is a
“two-tier” tax, which consists of an initial and
additional tax. If a private foundation has
undistributed income for a tax year that is still
not distributed by the end of the following tax
year, the initial tax of 15 percent is imposed.
Any organization that stills fails to distribute the
undistributed income may be subject to the
159
Domestic Private Foundations and Charitable Trusts, 2000
additional tax, which equals 100 percent of the
amount of the undistributed income.
[15] Seven of the ten largest foundations had
calendar year accounting periods, meaning that
all of their activity occurred during the calendar
year period. However, three of the ten had
other fiscal year accounting periods. For the
2000 Reporting Year, the Ford Foundation had
an accounting period ending in September 2001,
the J. Paul Getty Trust in June 2001, and the
W.K. Kellogg Foundation and the W.K.
Kellogg Foundation Trust in August; therefore,
much of their activity for Reporting Year 2000
occurred in Calendar Year 2001. See the Data
Sources and Limitations section.
160
160
[16] For further information on split-interest trusts,
see Belvedere, Melissa, “Charitable Remainder
Trusts, 2000,” Statistics of Income Bulletin,
Spring 2003, Volume 22, Number 4.
[17] For purposes of this article, “small charitable
trusts” refers to the group holding less than $1
million in fair market value of total assets (including trusts that either do not report assets or that
report assets equal to zero); “medium-size
charitable trusts” refers to the group holding
from $1 million to less than $10 million in assets,
and “large charitable trusts” refers to the group
holding $10 million or more in assets. On average, medium and large-sized trusts are much
smaller than foundations in those size groups.
IRS, Statistics of Income Bulletin, Fall 2003,
Publication 1136. (Rev. 12-03.)
Domestic Private Foundations and Charitable Trusts, 2000
Table 1.--Domestic Private Foundations: Number and Selected Financial Data, by Type of Foundation
and Size of Fair Market Value of Total Assets
[All figures are estimates based on a sample--money amounts are in thousands of dollars]
Selected sources of revenue
Type of foundation,
Number
asset size
of
returns
Total revenue
Number
Amount
of returns
(1)
(2)
Contributions, gifts,
Dividends and interest
Net gain (less loss)
and grants received
from securities
from sales of assets
Number
Amount
of returns
(3)
Number
Amount
of returns
Number
Amount
of returns
(4)
(5)
(6)
(7)
(8)
(9)
Total............................................................................
66,738
64,884
72,779,992
Zero or unreported.........................................................................
*299
*299
*22
$1 under $100,000.........................................................................
17,349
15,555
797,542
$100,000 under $1,000,000.........................................................................
26,365
26,313
2,781,100
$1,000,000 under $10,000,000.........................................................................
17,793
17,788
12,203,295
$10,000,000 under $25,000,000.........................................................................
2,834
2,832
7,874,502
$25,000,000 under $50,000,000.........................................................................
1,032
1,031
6,749,461
$50,000,000 under $100,000,000.........................................................................
514
514
5,861,825
$100,000,000 or more.........................................................................
552
552
36,512,246
32,757
-10,466
12,169
7,748
1,429
457
238
250
31,798,154
-791,496
2,061,174
6,937,755
4,028,792
2,947,862
2,591,121
12,439,955
50,307
-8,079
21,248
16,267
2,693
989
491
539
10,187,722
-13,409
273,675
1,398,584
999,703
908,027
875,303
5,719,022
39,511
-5,084
15,453
14,443
2,558
964
480
529
24,601,878
--15,626
215,861
2,843,592
2,275,630
2,380,391
2,045,403
14,856,628
Nonoperating foundations
Total...............................................................................
61,501
59,647
66,184,563
Zero or unreported.........................................................................
*299
*299
*22
$1 under $100,000.........................................................................
15,849
14,055
777,787
$100,000 under $1,000,000.........................................................................
24,586
24,534
2,544,432
$1,000,000 under $10,000,000.........................................................................
16,484
16,479
10,746,881
$10,000,000 under $25,000,000.........................................................................
2,327
2,326
6,341,538
$25,000,000 under $50,000,000.........................................................................
973
972
6,343,466
$50,000,000 under $100,000,000.........................................................................
479
479
5,492,724
$100,000,000 or more.........................................................................
503
503
33,937,714
28,563
-9,270
10,653
6,850
962
409
211
207
28,196,427
-772,981
1,926,101
5,878,206
3,016,234
2,857,036
2,395,394
11,350,476
47,571
-7,775
20,234
15,437
2,233
937
463
492
9,543,104
-12,495
259,789
1,332,971
920,980
872,404
836,321
5,308,144
37,510
-5,084
14,755
13,720
2,107
912
450
483
23,380,102
--15,626
211,214
2,748,896
2,067,136
2,285,943
1,981,640
14,100,899
Operating foundations
Total...............................................................................
5,238
5,237
6,595,430
Zero or unreported.........................................................................
---$1 under $100,000.........................................................................
*1,500
*1,500
*19,755
$100,000 under $1,000,000.........................................................................
1,779
1,779
236,668
$1,000,000 under $10,000,000.........................................................................
1,309
1,309
1,456,414
$10,000,000 under $25,000,000.........................................................................
507
506
1,532,964
$25,000,000 under $50,000,000.........................................................................
59
59
405,996
$50,000,000 under $100,000,000.........................................................................
35
35
369,101
$100,000,000 or more.........................................................................
49
49
2,574,532
4,195
-*1,196
1,516
898
467
48
27
43
3,601,727
-*18,515
135,073
1,059,549
1,012,558
90,827
195,727
1,089,478
2,735
-*304
1,014
830
460
52
28
47
644,619
-*914
13,886
65,613
78,723
35,623
38,981
410,878
2,000
--*698
723
451
52
30
46
1,221,776
--*4,646
94,696
208,494
94,447
63,763
755,730
Grantmaking foundations
Total...............................................................................
55,550
55,251
66,258,378
Zero or unreported.........................................................................
*299
*299
*22
$1 under $100,000.........................................................................
11,962
11,663
749,122
$100,000 under $1,000,000.........................................................................
22,547
22,547
2,291,081
$1,000,000 under $10,000,000.........................................................................
16,388
16,388
10,282,267
$10,000,000 under $25,000,000.........................................................................
2,358
2,358
6,299,373
$25,000,000 under $50,000,000.........................................................................
976
976
6,295,211
$50,000,000 under $100,000,000.........................................................................
490
490
5,341,231
$100,000,000 or more.........................................................................
531
531
35,000,072
26,225
-7,775
9,910
6,685
991
412
220
232
27,532,941
-745,404
1,698,733
5,719,670
2,908,049
2,657,856
2,198,196
11,605,034
45,467
-6,878
18,923
15,460
2,271
941
471
523
9,912,081
-12,350
260,667
1,347,568
931,365
881,058
842,069
5,637,003
37,223
-5,084
14,373
13,728
2,146
917
461
515
23,815,966
--15,626
193,874
2,568,955
2,076,938
2,325,552
2,006,557
14,659,715
Grantmaking-nonoperating foundations
Total...............................................................................
53,032
52,733
62,502,073
Zero or unreported.........................................................................
*299
*299
*22
$1 under $100,000.........................................................................
11,663
11,364
748,865
$100,000 under $1,000,000.........................................................................
21,106
21,106
2,165,649
$1,000,000 under $10,000,000.........................................................................
15,773
15,773
9,374,883
$10,000,000 under $25,000,000.........................................................................
2,276
2,276
5,927,518
$25,000,000 under $50,000,000.........................................................................
947
947
6,058,722
$50,000,000 under $100,000,000.........................................................................
471
471
5,176,475
$100,000,000 or more.........................................................................
498
498
33,049,938
24,192
-7,476
8,679
6,314
923
390
207
203
25,577,745
-745,147
1,605,890
5,028,203
2,671,696
2,623,372
2,099,491
10,803,946
43,942
-6,878
18,014
14,982
2,205
914
457
491
9,473,347
-12,350
248,589
1,309,238
912,746
861,028
825,828
5,303,568
36,029
-5,084
13,727
13,315
2,085
890
445
483
23,081,543
--15,626
190,175
2,523,079
2,036,579
2,263,887
1,982,549
14,100,899
Grantmaking-operating foundations
Total...............................................................................
2,517
2,517
3,756,306
Zero or unreported.........................................................................
---$1 under $100,000.........................................................................
*299
299
257
$100,000 under $1,000,000.........................................................................
1,441
1,441
125,431
$1,000,000 under $10,000,000.........................................................................
615
615
907,383
$10,000,000 under $25,000,000.........................................................................
82
82
371,855
$25,000,000 under $50,000,000.........................................................................
29
29
236,489
$50,000,000 under $100,000,000.........................................................................
19
19
164,756
$100,000,000 or more.........................................................................
33
33
1,950,134
2,033
-*299
1,230
372
68
22
13
29
1,955,196
-*257
92,843
691,467
236,353
34,484
98,705
801,087
1,526
--909
478
66
27
14
32
438,734
--12,078
38,330
18,619
20,030
16,241
333,435
1,194
--*646
412
61
27
16
32
734,423
--*3,699
45,876
40,359
61,664
24,009
558,817
All foundations
Footnotes at end of table.
161
Domestic Private Foundations and Charitable Trusts, 2000
Table 1.--Domestic Private Foundations: Number and Selected Financial Data, by Type of Foundation
and Size of Fair Market Value of Total Assets--Continued
[All figures are estimates based on a sample--money amounts are in thousands of dollars]
Excess of revenue
Type of foundation,
Total expenses
Number
Amount
of returns
(10)
for exempt
Number
Amount
of returns
(11)
(12)
purposes
Number
Amount
of returns
(13)
(14)
Number
Amount
of returns
(15)
(16)
(17)
All foundations
Total...............................................................................
65,171
37,433,937
Zero or unreported.........................................................................
*299
*2,696
$1 under $100,000.........................................................................
16,447
953,470
$100,000 under $1,000,000.........................................................................
25,869
1,659,317
$1,000,000 under $10,000,000.........................................................................
17,647
7,105,190
$10,000,000 under $25,000,000.........................................................................
2,816
3,867,253
$25,000,000 under $50,000,000.........................................................................
1,028
3,010,755
$50,000,000 under $100,000,000.........................................................................
514
2,959,917
$100,000,000 or more.........................................................................
551
17,875,340
65,776
*299
16,452
26,313
17,783
2,832
1,031
514
552
35,346,054
*-2,674
-155,928
1,121,783
5,098,104
4,007,249
3,738,706
2,901,908
18,636,906
57,699
*299
10,471
24,849
17,220
2,788
1,022
503
547
48,830,268
*22
43,396
925,769
5,998,782
4,135,985
4,142,780
3,918,702
29,664,831
61,009
*299
13,756
24,766
17,312
2,793
1,023
512
548
31,874,095
*2,696
927,868
1,478,604
6,306,015
3,331,322
2,525,646
2,537,216
14,764,729
Nonoperating foundations
Total...............................................................................
60,285
33,565,478
Zero or unreported.........................................................................
*299
*2,696
$1 under $100,000.........................................................................
15,251
948,319
$100,000 under $1,000,000.........................................................................
24,090
1,493,210
$1,000,000 under $10,000,000.........................................................................
16,384
5,929,634
$10,000,000 under $25,000,000.........................................................................
2,310
3,087,511
$25,000,000 under $50,000,000.........................................................................
969
2,754,091
$50,000,000 under $100,000,000.........................................................................
479
2,760,809
$100,000,000 or more.............................................................
502
16,589,208
60,838
*299
15,251
24,534
16,475
2,326
972
479
503
32,619,084
*-2,674
-170,532
1,051,222
4,817,245
3,254,026
3,589,375
2,731,916
17,348,506
54,019
*299
10,167
23,198
16,117
2,301
966
473
498
45,653,535
*22
42,171
890,614
5,706,424
3,684,767
4,017,040
3,795,868
27,516,629
56,700
*299
12,859
23,167
16,139
2,296
965
477
499
29,056,431
*2,696
925,798
1,359,910
5,390,335
2,755,438
2,405,032
2,384,606
13,832,645
Operating foundations
Total...............................................................................
4,887
3,868,460
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
*1,196
*5,151
$100,000 under $1,000,000.........................................................................
1,779
166,107
$1,000,000 under $10,000,000.........................................................................
1,263
1,175,555
$10,000,000 under $25,000,000.........................................................................
506
779,741
$25,000,000 under $50,000,000.........................................................................
59
256,664
$50,000,000 under $100,000,000.........................................................................
35
199,109
$100,000,000 or more.........................................................................
49
1,286,132
4,938
-*1,201
1,779
1,309
506
59
35
49
2,726,970
-*14,604
70,561
280,859
753,223
149,332
169,992
1,288,400
3,680
-*304
1,651
1,103
487
56
30
49
3,176,732
-*1,225
35,155
292,358
451,218
125,740
122,834
2,148,202
4,308
-*897
1,599
1,173
497
58
35
49
2,817,634
-*2,070
118,693
915,679
575,884
120,614
152,610
932,084
Grantmaking foundations
Total...............................................................................
55,550
35,529,156
Zero or unreported.........................................................................
*299
*2,696
$1 under $100,000.........................................................................
11,962
930,804
$100,000 under $1,000,000.........................................................................
22,547
1,555,670
$1,000,000 under $10,000,000.........................................................................
16,388
6,408,152
$10,000,000 under $25,000,000.........................................................................
2,358
3,327,496
$25,000,000 under $50,000,000.........................................................................
976
2,870,332
$50,000,000 under $100,000,000.........................................................................
490
2,831,199
$100,000,000 or more.........................................................................
531
17,602,807
55,545
*299
11,962
22,547
16,383
2,358
976
490
531
30,729,222
*-2,674
-181,681
735,411
3,874,113
2,971,876
3,424,879
2,510,031
17,397,266
51,420
*299
8,971
21,782
16,046
2,340
971
482
529
47,206,505
*22
35,164
880,710
5,482,737
3,784,998
4,027,815
3,754,750
29,240,309
55,550
*299
11,962
22,547
16,388
2,358
976
490
531
30,572,268
*2,696
916,828
1,456,822
5,790,603
2,939,487
2,438,816
2,439,399
14,587,617
Grantmaking-nonoperating foundations
Total...............................................................................
53,032
33,024,423
Zero or unreported.........................................................................
*299
*2,696
$1 under $100,000.........................................................................
11,663
930,538
$100,000 under $1,000,000.........................................................................
21,106
1,437,802
$1,000,000 under $10,000,000.........................................................................
15,773
5,557,632
$10,000,000 under $25,000,000.........................................................................
2,276
3,062,445
$25,000,000 under $50,000,000.........................................................................
947
2,716,237
$50,000,000 under $100,000,000.........................................................................
471
2,735,500
$100,000,000 or more.........................................................................
498
16,581,572
53,028
*299
11,663
21,106
15,768
2,276
947
471
498
29,477,649
*-2,674
-181,672
727,848
3,817,250
2,865,073
3,342,485
2,440,975
16,468,366
49,282
*299
8,971
20,341
15,501
2,264
943
467
496
45,034,341
*22
35,164
848,262
5,360,801
3,606,395
3,979,790
3,702,791
27,501,116
53,032
*299
11,663
21,106
15,773
2,276
947
471
498
28,666,637
*2,696
916,562
1,342,617
5,075,308
2,742,202
2,383,927
2,370,762
13,832,564
Grantmaking-operating foundations
Total...............................................................................
2,517
2,504,733
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
*299
*266
$100,000 under $1,000,000.........................................................................
1,441
117,868
$1,000,000 under $10,000,000.........................................................................
615
850,520
$10,000,000 under $25,000,000.........................................................................
82
265,051
$25,000,000 under $50,000,000.........................................................................
29
154,094
$50,000,000 under $100,000,000.........................................................................
19
95,699
$100,000,000 or more.........................................................................
33
1,021,234
2,517
-*299
1,441
615
82
29
19
33
1,251,573
-*-8
7,563
56,863
106,804
82,395
69,056
928,900
2,137
--1,441
544
76
28
15
33
2,172,163
--32,448
121,936
178,602
48,025
51,959
1,739,193
2,517
-*299
1,441
615
82
29
19
33
1,905,631
-*266
114,206
715,295
197,286
54,889
68,636
755,053
Footnotes at end of table.
162
Disbursements
Net investment income
over expenses
asset size
162
(less loss)
Domestic Private Foundations and Charitable Trusts, 2000
Table 1.--Domestic Private Foundations: Number and Selected Financial Data, by Type of Foundation
and Size of Fair Market Value of Total Assets--Continued
[All figures are estimates based on a sample--money amounts are in thousands of dollars]
Contributions,
Type of foundation,
Total
Excise tax on net investment
income
gifts, and
Total assets (book value)
investment assets
grants paid ¹
asset size
Number
(book value)
Amount
of returns
(18)
Number
Amount
of returns
(19)
Number
Amount
of returns
Number
Amount
of returns
(20)
(21)
(22)
All foundations
Total...............................................................................
55,550
27,563,591
Zero or unreported.........................................................................
*299
*2,526
$1 under $100,000.........................................................................
11,962
911,319
$100,000 under $1,000,000.........................................................................
22,547
1,347,230
$1,000,000 under $10,000,000.........................................................................
16,388
5,206,566
$10,000,000 under $25,000,000.........................................................................
2,358
2,730,084
$25,000,000 under $50,000,000.........................................................................
976
2,265,278
$50,000,000 under $100,000,000.........................................................................
490
2,234,730
$100,000,000 or more.........................................................................
531
12,865,858
(23)
(24)
(25)
55,733
*299
9,275
24,414
16,997
2,733
1,001
488
525
625,047
*( ² )
664
14,081
85,960
56,868
57,156
52,399
357,919
66,438
-17,349
26,365
17,793
2,834
1,031
514
552
409,523,987
-1,057,214
9,970,859
48,136,988
35,510,738
29,963,443
30,813,655
254,071,092
59,313
-12,265
24,686
17,455
2,816
1,027
513
551
386,202,652
-536,053
8,957,035
44,135,296
31,752,135
28,156,927
29,260,961
243,404,244
Nonoperating foundations
Total...............................................................................
53,032
26,551,755
Zero or unreported.........................................................................
*299
*2,526
$1 under $100,000.........................................................................
11,663
911,236
$100,000 under $1,000,000.........................................................................
21,106
1,269,209
$1,000,000 under $10,000,000.........................................................................
15,773
4,667,500
$10,000,000 under $25,000,000.........................................................................
2,276
2,588,396
$25,000,000 under $50,000,000.........................................................................
947
2,256,330
$50,000,000 under $100,000,000.........................................................................
471
2,226,434
$100,000,000 or more.........................................................................
498
12,630,124
52,341
*299
8,971
22,763
16,083
2,292
965
472
496
601,196
*( ² )
639
13,438
82,213
51,810
55,733
51,541
345,821
61,201
-15,849
24,586
16,484
2,327
972
479
503
374,989,966
-998,815
9,191,124
44,257,913
29,541,810
28,038,550
28,640,166
234,321,589
55,144
-11,663
22,907
16,305
2,319
969
479
502
360,521,557
-500,104
8,344,712
41,643,660
28,211,576
26,833,003
27,609,189
227,379,313
Operating foundations
Total...............................................................................
2,517
1,011,837
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
*299
*82
$100,000 under $1,000,000.........................................................................
1,441
78,022
$1,000,000 under $10,000,000.........................................................................
615
539,066
$10,000,000 under $25,000,000.........................................................................
82
141,688
$25,000,000 under $50,000,000.........................................................................
29
8,948
$50,000,000 under $100,000,000.........................................................................
19
8,296
$100,000,000 or more.........................................................................
33
235,734
3,391
-*304
1,651
914
441
36
16
29
23,851
-*25
643
3,747
5,058
1,422
857
12,098
5,238
-*1,500
1,779
1,309
507
59
35
49
34,534,022
-*58,400
779,735
3,879,075
5,968,928
1,924,892
2,173,489
19,749,503
4,169
-*603
1,779
1,150
497
58
34
49
25,681,095
-*35,949
612,323
2,491,636
3,540,559
1,323,924
1,651,773
16,024,931
Grantmaking foundations
Total...............................................................................
55,550
27,563,591
Zero or unreported.........................................................................
*299
*2,526
$1 under $100,000.........................................................................
11,962
911,319
$100,000 under $1,000,000.........................................................................
22,547
1,347,230
$1,000,000 under $10,000,000.........................................................................
16,388
5,206,566
$10,000,000 under $25,000,000.........................................................................
2,358
2,730,084
$25,000,000 under $50,000,000.........................................................................
976
2,265,278
$50,000,000 under $100,000,000.........................................................................
490
2,234,730
$100,000,000 or more.........................................................................
531
12,865,858
50,239
*299
8,074
21,602
15,993
2,317
962
475
517
603,813
*( ² )
499
13,373
77,279
52,511
55,514
50,060
354,576
55,251
-11,962
22,547
16,388
2,358
976
490
531
391,534,082
-940,146
8,953,680
44,145,327
30,017,661
28,391,717
29,109,103
249,976,447
52,249
-10,167
21,505
16,238
2,348
972
489
530
373,820,589
-465,713
8,210,366
41,685,820
28,394,013
26,976,804
27,824,167
240,263,706
Grantmaking-nonoperating foundations
Total...............................................................................
53,032
26,551,755
Zero or unreported.........................................................................
*299
*2,526
$1 under $100,000.........................................................................
11,663
911,236
$100,000 under $1,000,000.........................................................................
21,106
1,269,209
$1,000,000 under $10,000,000.........................................................................
15,773
4,667,500
$10,000,000 under $25,000,000.........................................................................
2,276
2,588,396
$25,000,000 under $50,000,000.........................................................................
947
2,256,330
$50,000,000 under $100,000,000.........................................................................
471
2,226,434
$100,000,000 or more.........................................................................
498
12,630,124
48,176
*299
8,074
20,161
15,482
2,256
943
466
495
589,525
*( ² )
499
12,785
75,595
50,314
55,051
49,680
345,601
52,733
-11,663
21,106
15,773
2,276
947
471
498
369,033,192
-918,476
8,331,130
42,300,501
28,883,676
27,427,141
27,997,030
233,175,237
50,059
-10,167
20,064
15,647
2,269
944
471
497
355,734,020
-465,713
7,721,342
40,265,121
27,631,813
26,288,008
27,029,079
226,332,944
Grantmaking-operating foundations
Total...............................................................................
2,517
1,011,837
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
*299
*82
$100,000 under $1,000,000.........................................................................
1,441
78,022
$1,000,000 under $10,000,000.........................................................................
615
539,066
$10,000,000 under $25,000,000.........................................................................
82
141,688
$25,000,000 under $50,000,000.........................................................................
29
8,948
$50,000,000 under $100,000,000.........................................................................
19
8,296
$100,000,000 or more.........................................................................
33
235,734
2,063
--1,441
511
61
19
9
22
14,288
--589
1,684
2,197
463
380
8,976
2,517
-*299
1,441
615
82
29
19
33
22,500,890
-*21,671
622,551
1,844,825
1,133,985
964,575
1,112,073
16,801,210
2,190
--1,441
591
79
28
18
33
18,086,568
--489,024
1,420,699
762,200
688,796
795,088
13,930,761
Footnotes at end of table.
163
Domestic Private Foundations and Charitable Trusts, 2000
Table 1.--Domestic Private Foundations: Number and Selected Financial Data, by Type of Foundation
and Size of Fair Market Value of Total Assets--Continued
[All figures are estimates based on a sample--money amounts are in thousands of dollars]
Investments in securities (book value)
Type of foundation,
Total
asset size
Number
Amount
of returns
(26)
164
Corporate
obligations
stock
Number
Amount
of returns
(27)
(28)
Number
Corporate
bonds
Amount
of returns
(29)
(30)
Number
Amount
of returns
(31)
(32)
(33)
All foundations
Total...............................................................................
46,290
306,741,533
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
5,981
228,249
$100,000 under $1,000,000.........................................................................
19,851
6,213,346
$1,000,000 under $10,000,000.........................................................................
15,789
32,944,587
$10,000,000 under $25,000,000.........................................................................
2,656
24,589,658
$25,000,000 under $50,000,000.........................................................................
987
21,292,100
$50,000,000 under $100,000,000.........................................................................
489
22,187,888
$100,000,000 or more.........................................................................
537
199,285,706
15,710
-*897
5,048
7,073
1,388
624
316
364
45,148,917
-*7,445
736,929
4,903,779
3,659,860
3,608,342
3,445,607
28,786,954
42,402
-5,084
17,945
14,815
2,587
962
477
532
216,964,494
-151,859
4,673,470
22,794,567
17,132,414
14,395,147
15,662,731
142,154,305
18,738
-*2,093
5,836
8,018
1,431
638
319
402
44,628,122
-*68,945
802,946
5,246,241
3,797,383
3,288,611
3,079,549
28,344,447
Nonoperating foundations
Total...............................................................................
43,146
288,666,613
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
5,383
201,166
$100,000 under $1,000,000.........................................................................
18,696
5,948,217
$1,000,000 under $10,000,000.........................................................................
14,973
31,407,074
$10,000,000 under $25,000,000.........................................................................
2,211
21,796,899
$25,000,000 under $50,000,000.........................................................................
934
20,357,146
$50,000,000 under $100,000,000.........................................................................
459
21,194,090
$100,000,000 or more.........................................................................
490
187,762,022
14,738
-*897
4,591
6,729
1,299
587
299
336
42,734,522
-*7,445
636,182
4,567,644
3,457,086
3,434,308
3,194,952
27,436,905
40,061
-4,785
17,247
14,033
2,149
912
451
485
203,768,143
-136,728
4,526,367
21,750,079
14,758,736
13,773,584
15,045,842
133,776,807
17,771
-*1,794
5,731
7,628
1,342
605
300
371
42,163,948
-*56,993
785,667
5,089,351
3,581,077
3,149,253
2,953,295
26,548,311
Operating foundations
Total...............................................................................
3,145
18,074,920
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
*598
*27,083
$100,000 under $1,000,000.........................................................................
1,155
265,129
$1,000,000 under $10,000,000.........................................................................
816
1,537,513
$10,000,000 under $25,000,000.........................................................................
445
2,792,759
$25,000,000 under $50,000,000.........................................................................
53
934,954
$50,000,000 under $100,000,000.........................................................................
30
993,798
$100,000,000 or more.........................................................................
47
11,523,684
972
--*457
344
89
37
17
28
2,414,395
--*100,746
336,135
202,774
174,034
250,655
1,350,050
2,341
-*299
*698
783
438
50
26
47
13,196,351
-*15,131
*147,103
1,044,488
2,373,679
621,563
616,889
8,377,498
966
-*299
*105
390
89
33
19
31
2,464,174
-*11,952
*17,279
156,890
216,306
139,357
126,254
1,796,136
Grantmaking foundations
Total...............................................................................
41,539
298,484,813
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
5,084
186,702
$100,000 under $1,000,000.........................................................................
17,241
5,769,179
$1,000,000 under $10,000,000.........................................................................
15,056
31,495,545
$10,000,000 under $25,000,000.........................................................................
2,229
21,839,362
$25,000,000 under $50,000,000.........................................................................
938
20,487,896
$50,000,000 under $100,000,000.........................................................................
469
21,463,620
$100,000,000 or more.........................................................................
522
197,242,508
14,878
-*897
4,710
6,707
1,313
590
306
356
44,248,511
-*7,445
718,539
4,645,479
3,474,937
3,446,250
3,311,115
28,644,746
38,126
-4,486
15,440
14,144
2,166
915
459
517
210,634,116
-134,137
4,297,910
21,803,400
14,775,971
13,864,962
15,191,142
140,566,593
16,959
-*1,495
5,177
7,633
1,352
605
306
391
43,602,186
-*45,120
752,730
5,046,666
3,588,455
3,176,684
2,961,362
28,031,169
Grantmaking-nonoperating foundations
Total...............................................................................
39,949
286,134,346
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
5,084
186,702
$100,000 under $1,000,000.........................................................................
16,266
5,536,161
$1,000,000 under $10,000,000.........................................................................
14,573
30,583,896
$10,000,000 under $25,000,000.........................................................................
2,172
21,418,691
$25,000,000 under $50,000,000.........................................................................
911
19,991,575
$50,000,000 under $100,000,000.........................................................................
454
20,966,698
$100,000,000 or more.........................................................................
489
187,450,622
14,221
-*897
4,305
6,528
1,285
572
297
336
42,477,846
-*7,445
624,136
4,453,215
3,420,393
3,345,267
3,190,486
27,436,905
36,966
-4,486
14,869
13,680
2,111
890
446
484
201,804,470
-134,137
4,176,574
21,166,818
14,477,334
13,544,274
14,839,925
133,465,407
16,546
-*1,495
5,072
7,399
1,325
587
297
371
41,852,030
-*45,120
735,451
4,963,863
3,520,963
3,102,034
2,936,287
26,548,311
Grantmaking-operating foundations
Total...............................................................................
1,590
12,350,468
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
--$100,000 under $1,000,000.........................................................................
975
233,018
$1,000,000 under $10,000,000.........................................................................
483
911,649
$10,000,000 under $25,000,000.........................................................................
57
420,672
$25,000,000 under $50,000,000.........................................................................
27
496,321
$50,000,000 under $100,000,000.........................................................................
15
496,922
$100,000,000 or more.........................................................................
33
9,791,886
658
--*404
178
28
18
9
20
1,770,665
--*94,403
192,264
54,544
100,983
120,630
1,207,841
1,160
--*571
464
55
25
13
33
8,829,646
--*121,336
636,582
298,636
320,688
351,217
7,101,186
413
--*105
234
27
18
9
20
1,750,157
--*17,279
82,803
67,491
74,650
25,075
1,482,858
Footnotes at end of table.
164
Government
Domestic Private Foundations and Charitable Trusts, 2000
Table 1.--Domestic Private Foundations: Number and Selected Financial Data, by Type of Foundation
and Size of Fair Market Value of Total Assets--Continued
[All figures are estimates based on a sample--money amounts are in thousands of dollars]
Type of foundation,
Total assets
Total
(fair market value)
investment assets
asset size
Investments in securities (fair market value)
Total
Government
obligations
(fair market value)
Number
Amount
of returns
(34)
Number
Amount
of returns
(35)
(36)
Number
Amount
of returns
(37)
(38)
Number
Amount
of returns
(39)
(40)
(41)
All foundations
Total...............................................................................
66,439
471,645,669
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
17,349
635,881
$100,000 under $1,000,000.........................................................................
26,365
10,495,141
$1,000,000 under $10,000,000.........................................................................
17,793
55,942,623
$10,000,000 under $25,000,000.........................................................................
2,834
42,122,826
$25,000,000 under $50,000,000.........................................................................
1,032
36,423,033
$50,000,000 under $100,000,000.........................................................................
514
35,859,888
$100,000,000 or more.........................................................................
552
290,166,277
59,316
-12,265
24,686
17,455
2,817
1,028
513
552
447,437,034
-523,940
9,500,474
51,757,078
38,150,420
34,450,299
34,082,885
278,971,939
46,334
-5,981
19,851
15,826
2,662
987
488
539
361,417,537
-241,441
6,755,174
40,183,154
30,582,276
27,091,800
26,409,786
230,153,906
15,404
-*598
5,048
7,068
1,387
625
314
364
46,131,724
-*1,505
752,102
5,081,219
3,802,268
3,700,485
3,545,149
29,248,995
Nonoperating foundations
Total...............................................................................
61,202
432,707,111
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
15,849
577,488
$100,000 under $1,000,000.........................................................................
24,586
9,661,671
$1,000,000 under $10,000,000.........................................................................
16,484
51,734,191
$10,000,000 under $25,000,000.........................................................................
2,327
35,854,793
$25,000,000 under $50,000,000.........................................................................
973
34,234,878
$50,000,000 under $100,000,000.........................................................................
479
33,464,698
$100,000,000 or more.........................................................................
503
267,179,392
55,147
-11,663
22,907
16,305
2,320
970
479
503
417,849,885
-487,997
8,825,563
49,020,415
34,408,139
32,917,499
32,255,449
259,934,824
43,195
-5,383
18,696
15,014
2,217
934
459
492
341,661,790
-214,365
6,466,131
38,481,186
27,645,162
26,037,516
25,332,839
217,484,592
14,432
-*598
4,591
6,725
1,298
588
297
336
43,689,488
-*1,505
651,398
4,740,755
3,595,655
3,525,033
3,291,358
27,883,783
Operating foundations
Total...............................................................................
5,238
38,938,558
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
*1,500
*58,393
$100,000 under $1,000,000.........................................................................
1,779
833,469
$1,000,000 under $10,000,000.........................................................................
1,309
4,208,432
$10,000,000 under $25,000,000.........................................................................
507
6,268,033
$25,000,000 under $50,000,000.........................................................................
59
2,188,155
$50,000,000 under $100,000,000.........................................................................
35
2,395,190
$100,000,000 or more.........................................................................
49
22,986,886
4,169
-*603
1,779
1,150
497
58
34
49
29,587,149
-*35,943
674,911
2,736,663
3,742,281
1,532,800
1,827,437
19,037,114
3,139
-*598
1,155
811
445
53
29
47
19,755,747
-*27,077
289,043
1,701,968
2,937,114
1,054,284
1,076,947
12,669,315
972
--*457
344
89
37
17
28
2,442,236
--*100,703
340,464
206,614
175,452
253,791
1,365,213
Grantmaking foundations
Total...............................................................................
55,251
451,479,313
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
11,962
517,790
$100,000 under $1,000,000.........................................................................
22,547
9,313,296
$1,000,000 under $10,000,000.........................................................................
16,388
51,539,870
$10,000,000 under $25,000,000.........................................................................
2,358
36,352,588
$25,000,000 under $50,000,000.........................................................................
976
34,484,265
$50,000,000 under $100,000,000.........................................................................
490
34,101,749
$100,000,000 or more.........................................................................
531
285,169,755
52,251
-10,167
21,505
16,238
2,349
972
489
531
433,168,346
-452,328
8,586,562
48,987,912
34,580,709
32,955,049
32,693,330
274,912,456
41,587
-5,084
17,241
15,098
2,235
937
469
524
352,211,646
-198,603
6,145,097
38,494,363
27,662,532
26,012,536
25,789,105
227,909,412
14,577
-*598
4,710
6,707
1,312
591
304
356
45,233,862
-*1,505
733,753
4,832,495
3,613,200
3,536,107
3,410,233
29,106,570
Grantmaking-nonoperating foundations
Total...............................................................................
52,733
426,094,713
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
11,663
496,120
$100,000 under $1,000,000.........................................................................
21,106
8,667,403
$1,000,000 under $10,000,000.........................................................................
15,773
49,556,831
$10,000,000 under $25,000,000.........................................................................
2,276
35,104,500
$25,000,000 under $50,000,000.........................................................................
947
33,370,705
$50,000,000 under $100,000,000.........................................................................
471
32,863,750
$100,000,000 or more.........................................................................
498
266,035,405
50,061
-10,167
20,064
15,647
2,270
944
471
498
412,510,576
-452,328
8,065,279
47,429,688
33,741,568
32,141,508
31,789,385
258,890,820
39,997
-5,084
16,266
14,615
2,178
910
454
491
338,604,592
-198,603
5,907,968
37,464,259
27,184,212
25,457,317
25,219,042
217,173,192
13,915
-*598
4,305
6,524
1,284
573
295
336
43,429,473
-*1,505
639,393
4,625,793
3,557,734
3,434,496
3,286,769
27,883,783
Grantmaking-operating foundations
Total...............................................................................
2,517
25,384,600
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
*299
*21,671
$100,000 under $1,000,000.........................................................................
1,441
645,893
$1,000,000 under $10,000,000.........................................................................
615
1,983,039
$10,000,000 under $25,000,000.........................................................................
82
1,248,088
$25,000,000 under $50,000,000.........................................................................
29
1,113,559
$50,000,000 under $100,000,000.........................................................................
19
1,237,999
$100,000,000 or more.........................................................................
33
19,134,350
2,190
--1,441
591
79
28
18
33
20,657,770
--521,283
1,558,224
839,140
813,541
903,945
16,021,636
1,590
--975
483
57
27
15
33
13,607,054
--237,129
1,030,103
478,320
555,219
570,062
10,736,220
662
--*404
183
28
18
9
20
1,804,389
--*94,360
206,702
55,466
101,611
123,464
1,222,788
Footnotes at end of table.
165
Domestic Private Foundations and Charitable Trusts, 2000
Table 1.--Domestic Private Foundations: Number and Selected Financial Data, by Type of Foundation
and Size of Fair Market Value of Total Assets--Continued
[All figures are estimates based on a sample--money amounts are in thousands of dollars]
Investments in securities (fair market value) -- continued
Type of foundation,
Corporate
Corporate
asset size
stock
bonds
Number
Amount
of returns
(42)
166
Amount
of returns
(43)
(44)
Number
Amount
of returns
(45)
(46)
Noncharitable-use assets
Number
Amount
of returns
(47)
(48)
(49)
All foundations
Total...............................................................................
42,497
270,444,823
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
5,084
170,984
$100,000 under $1,000,000.........................................................................
17,945
5,188,385
$1,000,000 under $10,000,000.........................................................................
14,903
29,775,492
$10,000,000 under $25,000,000.........................................................................
2,594
22,944,151
$25,000,000 under $50,000,000.........................................................................
961
20,079,618
$50,000,000 under $100,000,000.........................................................................
476
19,778,078
$100,000,000 or more.........................................................................
534
172,508,113
18,681
-*2,093
5,784
8,023
1,429
634
318
400
44,840,991
-*68,952
814,687
5,326,442
3,835,857
3,311,697
3,086,559
28,396,798
66,436
-17,349
26,365
17,793
2,832
1,031
514
552
392,933,354
-460,314
9,609,164
46,737,201
34,704,750
29,155,594
29,808,228
242,458,103
65,208
-16,452
26,066
17,760
2,833
1,032
513
552
448,811,999
-627,690
9,823,986
53,845,345
39,909,242
34,465,328
33,949,599
276,190,810
Nonoperating foundations
Total...............................................................................
40,161
255,611,866
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
4,785
155,853
$100,000 under $1,000,000.........................................................................
17,247
5,016,786
$1,000,000 under $10,000,000.........................................................................
14,125
28,568,907
$10,000,000 under $25,000,000.........................................................................
2,155
20,429,534
$25,000,000 under $50,000,000.........................................................................
911
19,356,305
$50,000,000 under $100,000,000.........................................................................
451
19,081,662
$100,000,000 or more.........................................................................
487
163,002,818
17,710
-*1,794
5,678
7,628
1,340
601
299
369
42,360,437
-*57,007
797,947
5,171,524
3,619,973
3,156,178
2,959,818
26,597,991
61,199
-15,849
24,586
16,484
2,325
972
479
503
360,866,168
-401,914
8,879,344
43,297,466
29,018,780
27,534,599
27,868,326
223,865,740
60,304
-14,952
24,586
16,484
2,327
973
479
503
421,273,189
-592,023
9,314,944
51,029,381
34,777,554
33,108,473
32,482,547
259,968,268
Operating foundations
Total...............................................................................
2,337
14,832,957
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
*299
*15,131
$100,000 under $1,000,000.........................................................................
*698
*171,600
$1,000,000 under $10,000,000.........................................................................
778
1,206,586
$10,000,000 under $25,000,000.........................................................................
439
2,514,616
$25,000,000 under $50,000,000.........................................................................
50
723,313
$50,000,000 under $100,000,000.........................................................................
25
696,416
$100,000,000 or more.........................................................................
47
9,505,295
971
-*299
*105
395
89
33
19
31
2,480,554
-*11,945
*16,740
154,918
215,884
155,519
126,741
1,798,807
5,238
-*1,500
1,779
1,309
507
59
35
49
32,067,186
-*58,400
729,820
3,439,735
5,685,970
1,620,995
1,939,901
18,592,364
4,904
-*1,500
1,480
1,276
506
59
34
49
27,538,810
-*35,667
509,042
2,815,965
5,131,688
1,356,854
1,467,052
16,222,542
Grantmaking foundations
Total...............................................................................
38,225
263,192,425
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
4,486
152,074
$100,000 under $1,000,000.........................................................................
15,440
4,647,876
$1,000,000 under $10,000,000.........................................................................
14,236
28,542,779
$10,000,000 under $25,000,000.........................................................................
2,172
20,427,430
$25,000,000 under $50,000,000.........................................................................
913
19,292,865
$50,000,000 under $100,000,000.........................................................................
459
19,409,471
$100,000,000 or more.........................................................................
519
170,719,932
16,907
-*1,495
5,124
7,642
1,350
601
305
389
43,785,359
-*45,025
763,468
5,119,089
3,621,902
3,183,564
2,969,401
28,082,910
55,249
-11,962
22,547
16,388
2,356
976
490
531
376,844,458
-343,246
8,690,898
43,522,082
29,408,820
27,826,480
28,339,650
238,713,282
54,951
-11,962
22,248
16,388
2,358
976
489
531
434,739,332
-518,650
9,000,568
51,202,859
35,036,512
33,273,394
32,849,576
272,857,773
Grantmaking-nonoperating foundations
Total...............................................................................
37,064
253,142,092
Zero or unreported.........................................................................
--$1 under $100,000.........................................................................
4,486
152,074
$100,000 under $1,000,000.........................................................................
14,869
4,521,847
$1,000,000 under $10,000,000.........................................................................
13,773
27,801,533
$10,000,000 under $25,000,000.........................................................................
2,117
20,072,725
$25,000,000 under $50,000,000.........................................................................
888
18,914,122
$50,000,000 under $100,000,000.........................................................................
446
18,988,373
$100,000,000 or more.........................................................................
486
162,691,418
16,489
-*1,495
5,019
7,403
1,323
583
296
369
42,033,027
-*45,025
746,727
5,036,933
3,553,753
3,108,699
2,943,901
26,597,991
52,731
-11,663
21,106
15,773
2,274
947
471
498
355,803,276
-321,576
8,094,951
41,821,913
28,376,306
26,973,866
27,387,727
222,826,937
52,733
-11,663
21,106
15,773
2,276
947
471
498
417,040,926
-518,642
8,586,642
49,599,386
34,296,722
32,640,938
32,138,156
259,260,440
Grantmaking-operating foundations
Total.......................................................
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