February 12, 2009

Taking a Big Hit

Foundation assets drop by 28%, a new Chronicle study finds

By Noelle Barton and Ian Wilhelm

The steep decline in the stock market last year triggered an erosion of foundation wealth, with many grant makers losing nearly one-third of their assets, according to a new Chronicle survey of many of the nation's largest philanthropies.

At the 60 grant makers that provided financial data for 2007 and 2008, assets declined a median of 28 percent.

Foundations with investments in bankrupt or hard-hit companies fared much worse. For example, the Starr Foundation, in New