Giving at private foundations with endowments of under $50 million jumped 9.1 per cent in 2012 versus 2011, new data shows.

These smaller foundations represent 98 per cent of all US private foundations, according to Foundation Source, which this week released its data for 2012 giving. The firm says there are approximately 80,000 private foundations in the US.

Grants rose last year both in terms of overall dollar value and relative to endowment size. Further data will be released when the firm publishes its 2013 Annual Report on Private Foundations later this year.

Grants were boosted by high levels of activity among the smallest group of private foundations, with endowments of $1-$10 million, which granted 25.1 per cent more last year than in 2011.

The firm has previously argued that because most research into private foundations focuses on the largest foundations, which represent only a tiny minority, it tends to be unrepresentative of the universe of these vehicles.

The report was based on the actual giving of 732 foundations and found that they were paying out more than twice their minimum distribution requirement of 5 per cent. They increased their qualifying distributions (grants plus charitable expenses) to 11.7 per cent, up from 11.2 per cent in 2011.

Meanwhile, giving priorities shifted toward arts and culture, international causes and human services, Foundation Source said.  

“The narrative over the last few years has been that foundations under $50 million were ‘stepping up’ to do more during hard times,” said King McGlaughon, chief executive of Foundation Source.

“While no one would question their extraordinary generosity, the consistently high and sustained levels of giving that we see suggest that this group may actively exceed their minimum distribution requirement regardless of what is happening in the broader economy,” he added.