Strength & involvement of foundations

What does this indicator measure?

This indicator measures the level of foundation engagement in the community. The Foundation Center collects, organizes, and communicates information about services, education, and research on a national, state, and local level about philanthropic endeavours. The strength and involvement of foundations is measured by changes in the amount of assets, giving, and receiving as well as growth in the nonprofit sector across the years in order to get a better indication of the civic engagement in a community.

Why is this indicator important?
Civic engagement can be reinforced when philanthropic organizations play an active role. By increasing civic assets either by distribution of services to individuals or organizations, social capital can be enhanced. Foundations and grants provide an example of how groups can improve a community’s civic engagement.

How are we doing?
According to an August 2005 report published by the Foundation Center titled Social Justice Grantmaking: A Report on Foundation Trends, the largest U.S. foundations “provide 11 percent of their grant dollars to support structural changes aiding those least well off economically, socially and politically.”

On a national level, the number of foundations increased 25% between 2000 and 2003, according to 2005 data from the Foundation Center.

The national total for the number of grants received across the country was 116,364, totalling approximately $13 billion.
The amount of dollars given between 2000 and 2003 increased 17%. Additionally, the amount of all foundation assets increased 12%.

According to the Foundation Center’s national and state statistics, Texas was listed in the top 10 states receiving grants in the nation in 2003, based on grants of $10,000 or more.

In 2003, the total amount of recipient dollars awarded in the state of Texas increased 19% above the amount awarded in 2000. However, the total number of grants received decreased 24% between 2000 and 2003.
In Texas, the number of grants received in 2003 was approximately 6,267, totalling approximately $726 million—roughly 6% of the total amount of grant dollars received nationally.
Of the top 50 foundations in the nation awarding grants in Texas, 43 foundations were located in Texas.
Foundations listed in the top 50 awarded 3,799 grants of $10,000 or more to organizations in Texas in 2003.
In 2003, independent foundations received 80% of the total grants and gave approximately 75% of the total distributed endowments.
Of the independent, corporate, community, and operating foundations in Texas, 26% are located in the Dallas metropolitan area, according to 2003 data from the Foundation Center.

Data from 2003 derived from the Foundation Center show that the number of foundations located within the counties of the Dallas PMSA increased from 440 in 1997 to 927 in 2003. These 927 foundations comprise the following:

848 independent foundations
- These foundations received approximately 52% of gifts given to organizations in the Dallas PMSA and distributed 59% in funding given in the Dallas PMSA in 2003.
33 corporate foundations
- These foundations received approximately 30% of gifts given to organizations in the Dallas PMSA and distributed 20% in funding given in the Dallas PMSA in 2003.
3 community foundations
- These foundations received approximately 10% of gifts given to organizations in the Dallas PMSA and distributed 19% in funding given in the Dallas PMSA in 2003.
43 operating foundations
- These foundations received approximately 9% of gifts given to organizations in the Dallas PMSA and distributed 1% in funding given in the Dallas PMSA in 2003.
Of these foundations, approximately 92% were independent, 4% were corporate, and less than 1% were community foundations, while 5% were operating foundations.

In the Dallas area, the total gifts received equated to $304,235,755, and total contributions bestowed equalled $369,896,662 for 2003.

Within the Dallas PMSA, foundation assets grew from $2.9 billion in 1997 to over $4.6 billion in 2003. These assets include the following:

$3.7 billion in independent foundations
$206 million in corporate foundations
$648 million in community foundations
$62 million in operating foundations

According to 2005 data from the Foundation Center, the top 50 grant recipients located in the Dallas PMSA received 460 grants. The largest recipient was the University of Texas Southwestern Medical Center at Dallas, which received $21,050,577—approximately 24% of the total $89,473,117.

The top 50 U.S. foundations awarding grants in the Dallas PMSA awarded approximately 1,088 grants. Of the top 50 U.S. foundations giving grants to those in this region, the Communities Foundation of Texas awarded 178 grants, totalling $17,351,179, ranking it first in the number of grants given as well as the total dollars awarded. There were 21 Texas-based firms awarding capital out of the top 50 grantmaking foundations giving grants to organizations in the Dallas PMSA. These data are from 2005 data from the Foundation Center and are based upon grants of $10,000 or more.

In 2003, 26 of the top 50 foundations awarding grants in the Dallas PMSA were based outside of Texas, and 24 were Texas-based. However, the Texas-based organizations accounted for about 75% of all grants awarded and over 80% of grant dollars in the Dallas PMSA.

According to data from the Foundation Center, qualifying distributions by foundations in the Dallas PMSA rose from $216 million in 1997 to $409 million in 2003. Total giving rose from $190 million to $369 million in the same time period.