Key Findings from Giving in Illinois 2009

Illinois Grantmaking Community Winnebago Lake

(124) (488)
Illinois had nearly 700 public foundations and 4,100 private foundations in 2007.
DuPage
Of the private foundations: (348) Cook
Northern Illinois
I 90% were independent, 4% were corporate, and 6% were operating foundations. (2680)
-312 Total
At least one-half of the state’s independent foundations were family foundations.
I Most private foundations were located in the Chicago metropolitan area (81%). These

tended to be larger than in other parts of the state, representing 94% of total assets.
Peoria
(58)
Illinois grantmaker contributions in 2007 totaled over $2.2 billion. Disproportionately
McLean
large shares were contributed by: Western Illinois (39)
I Largest statewide foundations: the top 100 funders by 2007 asset size accounted for
68 Total
Champaign
77% of all Illinois foundation assets and 68% of total giving. (38)

I Corporate funders: although representing only 7% of all grantmakers, corporate

foundations and giving programs contributed 26% of the state’s private funding total.
East
St. Louis
Region
82 Total
Illinois Foundations by Type (Selected) circa 2007
F O U N D AT I O N S GRANTS*

Independent Foundations 3,655 90% $ 1,403,987,572 76%

Southern Illinois
Corporate Foundations 162 4% $303,401,917 16% 86 Total
Operating Foundations 223 6% $27,237,684 1%
Community Foundations 19 .5% $120,688,282 7%
*Excludes continuing support, loans/PRI’s, technical assistance, and other qualifying distributions.
Source: Foundation Center Statistical Information Service, 2009

Growth Trends
2005-2007
During the two-year period since Donors Forum’s last Giving in Illinois study, Illinois
private foundation assets grew 54% and contributions rose 38%, far exceeding the national
growth rates of 34% for assets and 13% for giving levels. This primarily reflects asset and
giving increases in the Chicago area; of Illinois’ five other regions, all but Central Illinois
experienced declines in growth.

Since the 2008 Economic Downturn

As a result of the economic downturn in late 2008, earlier growth trends have been
reversed. Of the Illinois grantmakers participating in Donors Forum’s November 2009
Economic Outlook survey, 50% reported decreasing their giving in 2009. Nearly four in ten
(37%) also planned decreases for 2010, while only 20% planned to increase their
giving. At the same time, 65% reported asset declines in 2009.
 Sources of Private Giving in Illinois
Estimated Total: $11.6 Billion
Foundations
& Corporations
($2.2 billion)
Individuals
18.5%
($9.4 billion)
81.5%
Individuals’ 82% share of private giving
includes giving to religious congregations
and causes as well as gifts not captured on
itemized annual tax returns. Religious giv-
ing accounts for up to 50% of all Illinois
household charitable contributions.
A Note about Grant Size Averages
The grant size averages for each sector reflect a
range of grant sizes, from as low as $1,000 to
$1 million or more. The median sizes for each
sector ranged from $10,000 to $30,000.
Focus of Illinois Grantmaking Activities
Sector Overview
The major recipients of grantmaker funding are 501c3 public charities that file form 990
tax returns. In 2007, Illinois had over 13,300 such organizations.
I The largest sector was human services (32% of all public charities), followed by education
(19%), health (14%), public affairs/society benefit (12%), and arts/culture (11%).
I They reported $63.55 billion in total revenues, of which $12.3 billion came from gifts
and grants – an estimated 9% from government grants, 20% from grantmakers, and 71%
from individuals.
Geographic Focus of Funding
Around 60% of funders in Donors Forum’s Illinois Funding Source database limit their
giving to the state of Illinois, focusing in particular on local communities (67%).
I Slightly more than one-half of the funders that target specific communities give exclu-
sively to recipients in the Chicago area; however, their grants account for 95.5% of all
dollars awarded.
I Of the 40% of funders that give outside Illinois, most, if not all, also fund within the
state. Indeed, 90% of all Illinois private and community foundation funding in 2007
benefited Illinois-based recipients.
Distribution of Grants by Purpose
Consistent with the distributions of public charities by sector, human services received the
largest number of grants awarded by Illinois funders (25% of the total), followed by educa-
tion (24%). However, the largest share of total grant dollars went to education (23% vs.
18% for human services).
After education, the arts received the next largest share of total grant numbers (15%),
but a far smaller proportionate share of total grant dollars (8%). Conversely, health
received the third largest share of total grant dollars (15%), but a lower share of grant
numbers than the arts (13%).
The disparities among different sectors’ share of total grants and share of total dollars
reflect, for the most part, differences in average grant size. In sectors with high averages,
particularly large grants to a relatively small number of recipients are reflected.
2007 Grants Awarded to Each Sector by Illinois-Based Funders:
Average Grant Size per Sector
Science/Research $ 217,013
International $ 161,446
Public/Society Benefit $ 121,692
Environment/Animals $ 92,837
Education $ 74,906
Health $ 59,446
Human Services $ 58,158
Arts/Culture $ 46,275
Source: Sample of 16,565 from Foundation Directory Online
 Illinois Foundation 2007 Grants* by Funding Purpose
Human 25%
Services 18%

Education 24%
23%

Health 13%
15%
Public/
10%
Society
13%
Benefit

Arts/ 15%
Culture 8%

Environment 6%
and Animals 7%

International 5%
10%

Science/ 3%
Research 6%
0% 5% 10% 15% 20% 25% 30%

*Calculations are based on number of purposes represented % of Grants

Source: Sample of 16,564 grants from Foundation Directory Online % of Dollars

Sector Highlights
Within each sector, the distributions of grants vary by organization type/sector subcategory:

Arts/Culture Performing arts organizations received one-half of all 2007 arts grants (49%).
However, they received the same dollar share as museums (both 31%), which received
17% of all grants.

Education Higher education institutions received around one-third (32%) of all education
grants in 2007, but one-half of the dollars awarded (50%). By contrast, the next largest
recipient, K-12 institutions, received almost the same number of grants (30%), but 22%
of the dollar total.

Environment/Animals The environment/nature subsector far surpassed animals/wildlife in

terms of both number of grants (76% of the 2007 sector total) and dollars received (82%).
This reflects its larger number of organizations, with parks/gardens and nature conserva-
tion organizations receiving the largest shares.

Health Hospitals were the largest recipient of both number (41%) and dollar value (30%)
of 2007 health grants. The next largest dollar shares were received by reproductive health
care (20%) and medical research (17%), but these represented, respectively, only 8.5% and
10% of the number awarded.

Human Services Multipurpose human services agencies received by far the largest share of
2007 human services grants: 49%, compared to 12% for the next largest recipient,
crime/justice-related programs. However, they received only 24% of the dollar total;
crime/justice, by contrast, received 35.5%, reflecting particularly large grant awards to an
agency serving ex-offenders.

Public/Society Benefit Philanthropy-related organizations received the largest number of

public/society benefit grants in 2007 (44%), reflecting the numbers awarded to federated
funds. However, community improvement programs, recipient of 30% of public/society
benefit grants, received the largest dollar share (45%, compared to 25% for philanthropy).
 Future Grantmaking Strategies
In response to the economy, substantial numbers of the grantmakers who participated in
Donors Forum’s November 2009 Economic Outlook survey (43%) reported having made
changes to their programs and funding priorities, in most cases temporary (31%) but
permanent for 12%. These included shifts in funding to programs benefiting the needy,
“emergency assistance” funding, and increased operating support, as well as efforts to
streamline grants requirements.
208 South LaSalle, Suite 1540
More broadly, however, grantmakers have increased their efforts to support nonprofit
Chicago, IL 60604
organization capacity building, as well as become more “strategic” in their funding
312-578-0090 Fax 312-578-0103
choices. This means, in the words of one grantmaker, “focusing more support on the
strongest, most effective programs… [and] phasing out the programs which are not as
strong… [or] likely to improve significantly in the next few years.”
Sources
1. Foundation Center, Foundation Yearbook,
Changes in Type of Support 2009 Edition; Statistical Information
Service, 2009; and grants samples drawn
In 2007, Illinois funders’ most frequently designated support type was program support,
from Foundation Directory Online and
accounting for 36% of all grants and 53% of all grant dollars. However, Donors Forum’s 2009 national survey sample
Economic Outlook survey found that the only type of support which substantial numbers of 2. Donors Forum, Illinois Funding Source
grantmakers planned to increase in the coming year were capacity building/strategic plan- database; Economic Outlook 2010 (a report
ning grants (49% of grantmakers that provide this type of support). of November 2009 survey findings); and
Individual Giving in Illinois, 2007
3. National Center for Charitable Statistics,
Core Files, circa 2007
4. IRS, Statistics of Income Division, May
2009—for the state of Illinois, 2007
5. Congressional Research Service,
An Overview of the Nonprofit and
Charitable Sector, 2009

Grantmakers Planning an Increase or Decrease About the Giving in Illinois Report Series
in Specified Types of Support Donors Forum’s Giving in Illinois report series
is published every two years in order to provide
46% an overview of grantmaking practices for the
Capacity building/ 49% most recent year that has statewide form 990
strategic planning financial data available. Giving in Illinois 2009
grants 6%
offers information about the size, make-up, and
56% funding allocations of Illinois grantmakers in
Multi-year grants 28% 2007; however, in acknowledgment of the
17% 13% impact of the economic downturn in late 2008,
more recent survey findings are also included.
66%
General/ 27% About Donors Forum
operating support
7% Donors Forum is a membership association that
strengthens philanthropy and the nonprofit
67% community in Illinois through education, net-
Program support 21% working, public policy leadership, research,
13% library services, publications, media relations,
6% and a website. In so doing, Donors Forum
67% increases the ability of the philanthropic and
Support for 14% nonprofit sector to meet the needs and enhance
renewal grants
19% the lives of individuals, families, and communi-
ties throughout Illinois. For details on the
68% resources available to the public, as well as the
Support for benefits of joining Donors Forum as a grant-
0%
capital campaigns
32% making Member, advisory Associate Member,
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 or nonprofit Forum Partner, please visit
www.donorsforum.org or call 312-578-0090.
Source: Donors Forum, November 2009 Economic Outlook Survey No Change
Increase
Decrease