At FoundationSearch, we are frequently asked whether there is a seasonality to foundations giving, as there is in individual giving. Unfortunately, foundations most often don’t report the exact month of their donations, however, we can easily determine their fiscal year-end using information from foundation online databases.
“Year-end” is the time that funders must ensure that they have met their minimum required donation amounts to qualified donees. The Internal Revenue Service requires that private foundations donate at least 5% of their assets averaged over a 5-year rolling timeframe. If they have not met this donation threshold, they will most likely be looking to meet it before their year-end.
This presents an opportunity for charities to apply at an advantageous time. Even if foundations have met their minimum giving thresholds, “leftover” funds at year-end can leave the impression that those in charge of the grant-making process have been unsuccessful in their efforts to locate a worthy recipient. This also presents an opportunity for the grant seeker.