With federal legislation affecting nonprofits and foundations expected later this summer, the study is designed to inform the policy debate.

The findings suggest that, along with type and size, a foundation’s mission and program goals are important factors in analyzing its charitable expenditures. "This comprehensive, detailed information should help policymakers better understand the foundation community," said Mott Program Officer Elan Garonzik.

Posted by Jennifer Lowe, 01:40:18 PM



New Aspen Paper About Foundation Spending
Congress is once more scrutinizing nonprofit organizations, and the debate about spending by foundations—including the percentage of their assets distributed each year for good works, also known as “payout”—may soon heat up again.

To help inform discussion of foundation payout, the Aspen Institute’s Nonprofit Sector Research Fund (NSRF) has released a new working paper, Money, Mission, and the Payout Rule: In Search of a Strategic Approach to Foundation Spending, by Thomas J. Billitteri, a former news editor at The Chronicle of Philanthropy. Finding that too few foundations match their payout rate to their mission, Billitteri urges foundations to engage donors, board members, and foundation executives in weighing the merits of spending more money on good works now versus deferring outlays until later.

In an unbiased and accessible treatment, the paper offers a legislative history of payout rules; a summary of existing research on the payout rate and a listing of critical issues for future research; discussion of policy changes that may occur in this area; and examples of how foundation leaders are strategically addressing payout at their institutions.

Money, Mission, and the Payout Rule can be downloaded from the Nonprofit Sector Research Fund’s website at http://www.nonprofitresearch.org/usr_doc/FullReport721.pdf or can be purchased in hard copy by calling 202.736.2500.

Posted by Jennifer Lowe, 12:00:43 PM