Buoyed by an improving economy, Maryland foundations increased their assets by 15 percent in 2003, according to a study released yesterday by a local philanthropic association.
Grants by Maryland foundations didn't keep pace, increasing 3 percent over the year to $640 million. That brought criticism from a watchdog group, though the Association of Baltimore Area Grantmakers, which issued the report, said foundations typically dole out money based on the averages of their total worth over the prior two to five years.
Maryland foundations' giving also rose 3 percent in 2002, when assets dropped almost 6 percent.
Association leaders say the lag between changes in assets and changes in giving means that state foundations have probably continued to increase spending in the past two years. A survey by the group in March found that half of grant makers expected to give more this year and close to 40 percent expected to hold the line.
Nationally, foundations didn't increase giving in 2003, though assets rose 9 percent, the association said.
Maryland foundations' assets reached $10.4 billion in 2003, and about three-quarters of that was at groups based in the Baltimore area.
One significant reason the health of foundations matters for Baltimore is that they help fund nonprofits, which are the city's largest employers and play a sizable role in efforts to solve urban ills.
"I think this is very encouraging," said Betsy S. Nelson, executive director of the grant makers association, which counts about 140 foundations and corporate-giving programs among its members.
"With foundations, the giving is directly tied to what the assets are, and we see assets going up," Nelson said.
Individuals account for the biggest share of charitable contributions; foundations account for a little more than 10 percent nationally.
But nonprofits say grant makers play a significant role, giving seed money for new programs, conducting research and helping shape the way public and private groups attack social problems.
Baltimore-area foundations are increasingly teaming up to leverage their money on initiatives such as work-force training for city residents.
Maryland's two largest grant makers, the Annie E. Casey Foundation and the Harry and Jeanette Weinberg Foundation, are among the top 25 private foundations in the nation by size.
