America's biggest charitable foundations are stepping up their giving to help the homeless and the hungry during the recession, according to a group that studies institutional giving.
As of mid-January, 50 of the nation's largest foundations had committed more than $100 million in grants aimed at reducing foreclosures, keeping food bank shelves stocked and providing services to the homeless and financial counseling for others.
The donations announced so far are just the beginning, said Steven Lawrence, the Foundation Center's senior director of research and author of a report on emergency giving in response to the economic downturn.
And they are also just one aspect of the way foundations are responding to the economic downturn, Lawrence said.
Foundations have seen their assets drop dramatically during the past year, just like everyone else, but many are committing to keeping their giving steady.
The nation's largest foundation, the Bill & Melinda Gates Foundation, announced this week it would increase its giving from 5 percent to 7 percent of its assets in 2009, despite a 20 percent drop in the value of its assets.
"The vast majority of foundations are trying to hold their giving level," Lawrence said.
That means many foundations are increasing their giving beyond the 5 percent of assets required by the Internal Revenue Service, to keep their promises to the causes they support.
Lawrence said he was not sure what will happen next year if the stock market does not recover: "2010 may be really challenging."
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