FOR IMMEDIATE RELEASE CONTACT:
Buffy Beaudoin-Schwartz, Communications Director
410/727-1205, bbschwartz@abagmd.org
BALTIMORE, MD (November 14, 2005) – Maryland foundations increased their giving by 3% and their assets by 15% between 2002 and 2003 according to a report released today by the Association of Baltimore Area Grantmakers (ABAG). The state's private foundations are therefore poised for future growth in giving.
Foundations typically base their giving budgets on averages of their assets from two to five years prior to the year of giving. Because of this practice, giving increases often lag behind asset increases. The reverse is also true: decreases in giving lag behind decreases in assets. In 2002, foundation assets decreased nearly 6% while giving rose 3%.
ABAG's new report, The State of Foundation Giving in Maryland – 2005, is part of an ongoing series documenting the status of charitable giving in the state. The report covers the year 2003, the most recent year for which government data are available.
Today's report highlights a number of trends:
Maryland Foundations Increased Assets by 15%
Maryland foundations increased their assets between 2002 and 2003. Maryland foundations held about $10.4 billion in assets in 2003, a 15% increase from the previous year. Total Giving Increased 3%
Giving from these foundations was $640 million, up by 3% from 2002. Greater Baltimore Reflects State Trends
In Baltimore and the five surrounding counties, foundation assets rose 15% from $6.5 billion to $7.4 billion; and giving rose by 2% from $421 million to $428 million. The majority of Maryland's foundation assets reside in the Greater Baltimore region. Growth in Assets and Giving Greater in Maryland than the U.S. Overall:
Foundations in the U.S. held about $476 billion in assets in 2003, a 9% increase from the previous year.
Total giving from these foundations was $30.3 billion, about the same as in 2002.
Both the asset increase and giving increase were greater for Maryland's foundations than for the U.S. as a whole; this is comparable to a number of other states in the Northeast United States.
Foundations in the Northeast accounted for 48.1% of overall foundation giving; in this region, foundations increased their giving by 3.1% from 2002 levels. Giving Patterns Projected to Remain Steady:
Supplementing government data, ABAG surveyed its members in 2004 and again in 2005 about their projected giving for those years.
The survey in 2004 found nearly half of ABAG member foundations projecting an increase in their grants budget from 2003 to 2004; another third reported they would maintain their 2003 budget level in 2004.
The survey in 2005 found half of respondents projecting an increase in giving from 2004 to 2005, while 38% expected no change in giving. This is an encouraging trend in that the vast majority of respondents to this membership survey will either hold their giving steady, or increase it.
Foundation giving is an important part of total charitable giving, accounting for about 12% of private donations. Approximately 75% of all charitable dollars come from individual citizens, 5% from corporations, and the remainder from individual bequests.
“We are so pleased that Maryland foundation assets rebounded strongly from their losses in 2002” said Betsy Nelson, ABAG Executive Director. “The additional funds will help foundations fill unmet needs that individuals and government may not fund. They may provide seed money for innovative projects, fund capacity building to strengthen organizations, or focus on historically underserved populations” commented Nelson.
ABAG will soon release a report focusing on individual charitable giving in Maryland. To read the entire State of Foundation Giving in Maryland – 2005 report, visit www.abagmd.org.
### ABAG is the Baltimore region's premier resource on philanthropy, dedicated to informing grantmakers and improving our community. ABAG's members include representatives of more than 130 private foundations and corporations in Central Maryland with strategic, ongoing grantmaking programs. www.abagmd.org
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