Assets at US private foundations with under $50 million in capital remain below their pre-recession levels, having dipped in 2011, but donations have remained strong, according to data from Foundation Source.

Assets at US private foundations with under $50 million in capital remain below their pre-recession levels, having dipped in 2011, but donations have remained strong, according to data from Foundation Source.

Private foundations with under $50 million in assets account for 98 per cent of the market in the US, which in total is made up of around 80,000 private foundations. At the end of 2011, these small and mid-size foundations’ assets were around 91.3 per cent of their value at the end of 2007.

Since 2007, however, donors have contributed significantly to their foundations, adding fresh capital at a rate of 104 per cent of the amount granted (not including expenses).

Asset levels at these foundations grew in 2009 and 2010, but then decreased by 3 per cent on average in 2011. This is despite the fact that new capital contributions last year were 19 per cent higher than the year before, funding 84 per cent of total money out (including expenses). The rate of replenishment was 72 per cent in 2010, 111 per cent in 2009 and 94 per cent in 2008.

H King McGlaughon, chief executive of Foundation Source, which collected data from 519 private foundation clients for the study, said donors were “undeterred” by the “sluggish economy,” and were “advancing their causes through impact-driven grants.”

“We’ve seen for many years how our clients replenish their assets, but had not realized how well their contributions held up through the economic downturn,” said Andrew Bangser, chief financial officer. “The data indicates that smaller foundations contribute more than larger foundations on a percentage basis. But that’s to be expected as many of our clients’ foundations are operated or controlled by individuals and families still in their earning years, who are continuing to fund their foundations throughout their working lives.”

In February Foundation Source released data, also derived from its client base, showing that in general small to mid-size foundations gave more than twice their 5 per cent minimum distribution requirement in 2011, with the smallest foundations giving away “significantly more.”

The data also showed that giving priorities shifted toward arts and culture, with foundations donating 40.6 per cent more in this area than the previous year, while the education, science and technology sectors saw donations scaled back.