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Sustainable Payout for Foundations

Council of Michigan Foundations

  • Program Civil Society
  • Program Area Strengthening Civic Space
  • Grant Amount $25,000
  • Grant Period March 1, 2004–August 31, 2004
  • Location Detroit, MI, United States
  • Geographic Focus Michigan

About this grant

In 2000, the Council of Michigan Foundations (CMF) completed a longitudinal study that examined what level of private foundation giving could be sustained without depleting the real value of a foundation’s assets over time. The report, “Sustainable Payout for Foundations,” concluded that a payout rate of more than 5 percent could not be sustained without eroding assets over the long term and, thus reducing future grantmaking capacity. With the recovery of the stock market and continued federal budget challenges, the payout issue is likely to re-emerge. There is a critical need to update research to reflect the effects of the recent market on foundations.Funding will enable CMF to update the 2000 report, including adding an additional five years to the study; addressing the effect of the recent market on foundations’ ability to maintain purchasing power based on the 5 percent payout requirement; and providing a summary report.CMF, incorporated in 1975, is a nonprofit membership association made up of more than 495 foundations and corporations that make charitable grants. Its mission is to enhance, improve and increase philanthropy in Michigan.