By Ruth Masterson, Exponent Philanthropy 

Foundations that work with few or no staff—the largest segment of the philanthropy community—are achieving outsized impact across the country and around the world.  

Today, Exponent Philanthropy released the 2015 Foundation Operations and Management Report, the premier benchmarking resource for small-staffed foundations and their advisors.

Join Exponent Philanthropy today for access to the Foundation Operations and Management Report and other member benefits. Access to this year’s report is a member-only benefit.

Based on data collected in mid-2014, we learned that member foundations granted an estimated $4.4 billion to local, national, and international causes in their most recent fiscal year. They have an estimated total fair market value of $87.8 billion, up from $74.1 billion at the end of 2012.

We also learned other important things about our member foundations:

• Member foundations use lean operations, spending just 14 cents in charitable operating costs for each dollar of grants awarded. One-quarter of foundations surveyed operate with no paid staff; of those with paid staff, one-third have only one staff member.
• An estimated 158,000 grants were awarded by member foundations collectively, down from an estimated 203,000 a one year earlier. Median grant size increased from $15,415 to $19,116 during that time, suggesting foundations are giving fewer grants but increasing grant size to maximize impact.
• Whereas the majority of grants went to local communities, 21% of foundations surveyed give internationally—indicating a notable role for small U.S.-based foundations on the international stage.
• Member foundations demonstrate leadership by reviewing grantmaking strategies regularly (74%), using information from grantees to inform grantmaking (62%), and collaborating or meeting regularly with other funders (58%).
• Member foundations saw a significant increase in returns on their investments, reporting average returns of 14.1%, up sharply from 9.7% reported in the 2013 Foundations Operations and Management Report.
• Members are generous in their giving. Median qualifying distributions were 5.19% of noncharitable use assets, or an average of 6.50%, exceeding the required 5%.
• Member foundations are adding impact investments to their portfolios. Thirteen percent of foundations surveyed engage in impact investing, and these members maintain an average of 41% of their portfolio in impact investments.

Download the full report (Exponent Philanthropy members only)

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Our sincere thanks to the 777 Exponent Philanthropy member foundations that generously responded to our surveys in 2014.

Senior Program Director Ruth Masterson works closely with members to create written materials and training curricula, and answers member questions on foundation administration, governance, boards, and tax and legal topics. She is our data guru and also project manager for Exponent Philanthropy’s Practical Board Self-Assessment. Prior to joining Exponent Philanthropy, Ruth served nonprofits in her work at Adler & Colvin, the Council on Foundations, and the International Center for Not-for-Profit Law.