INDIANAPOLIS—Indiana’s charitable foundations devote 47 percent of their grantmaking to education, more than twice the national average, a new study by the Center on Philanthropy at Indiana University finds.

Foundations in the state gave an estimated $964.9 million to charitable purposes in 2005, the latest year for which data are available. At least two-thirds (68 percent) of the money given by Indiana foundations stays in the state.

"The investments Indiana foundations are making in strengthening education are significant. In 2005, they gave more than $450 million to educational organizations," said Patrick M. Rooney, interim executive director and director of research for the Center on Philanthropy. "Nationally, about 23 percent of foundation giving goes to education."

Human services nonprofits, such as food banks and homeless shelters, received $136.6 million, accounting for 14 percent of the total. Public-society benefit organizations, such as United Way and community development groups, received $126.6 million, or 13 percent of funds given by Indiana foundations. Both percentages are in line with national averages.

Health causes were awarded 6 percent of Indiana grant dollars, compared with 23 percent of national foundation giving, and Indiana foundations gave the arts 9 percent of funds distributed, compared with 12 percent nationally. Hoosier grantmakers’ giving to religion was four times the national share (8 percent of Indiana funds compared with 2 percent nationally).

The analysis of giving by the state’s 1,279 active grantmaking independent, corporate and community foundations found that the average grant amount was $46,029 and the median grant was $4,000. Independent foundations gave 82 percent of the grant dollars awarded, representing an estimated $793 million. The study was funded by Indiana Grantmakers Alliance.

"In these tough economic times, Hoosiers are fortunate to be supported by the enduring generosity of Indiana’s foundations," said Marissa S. Manlove, president and CEO of Indiana Grantmakers Alliance. "By contributing 2.7 percent of the nation’s philanthropic dollars on behalf of only 2.1 percent of the U.S. population, our grantmakers are giving more than their fair share to improve Indiana."

Foundations and grantmaking vary widely across the state, the report shows. While approximately one-third of Indiana’s foundations are located in Central Indiana, these organizations made 4 in 10 of Hoosier foundations’ grants (44%) and accounted for 79 percent of grant dollars.

The Northeast and Northwest Indiana regions had the next largest percentages in both grant dollars awarded (7 percent and 5 percent, respectively) and the number of grants given (17 percent and 11 percent). The Southwest region reported 11 percent of the grants and 2 percent of grant dollars. Other regions each account for 5 percent or less of both the number and dollar value of grants statewide.

The northern and central portions of the state have a comparatively large share of grantmaking foundations. In the southern regions, there are fewer foundations and fewer foundation assets, meaning these regions tend to have fewer and smaller grants.

Community foundations are a significant part of Hoosier giving. In five of the eight Indiana regions studied, they were responsible for 20 percent or more of the region’s foundation giving, nearly twice the national average. Statewide, they accounted for 8 percent of the total dollars awarded.

Indiana is a leader in the community foundation movement. Each of Indiana’s 92 counties is served by a community foundation or a fund within a community foundation, reflecting contributions from donors throughout the state and investments from Lilly Endowment’s Giving Indiana Funds for Tomorrow (GIFT) initiative, which encouraged the development of additional community foundations.

The full report, which includes a statewide overview of Indiana foundation giving and regional data for each of eight Indiana regions, is available at the Regional Giving & Volunteering Statics page of our website.

About the Center on Philanthropy at Indiana University
The Center on Philanthropy at Indiana University is a leading academic center dedicated to increasing the understanding of philanthropy and improving its practice worldwide through research, teaching, public service and public affairs programs in philanthropy, fundraising, and management of nonprofit organizations. It operates programs on the IUPUI and IU Bloomington campuses.

###