November 15, 2006

New Report: Many California Regions Underserved by Foundations; Central Valley and Inland Empire among those Most Underserved

Report Includes County-by-County Data on Foundation Activity

San Francisco — A new report on private and community foundations in California shows that many California counties are underserved by foundations and that the rapidly growing regions of the Inland Empire and Central Valley are among those most underserved. Many counties in the Inland Empire and Central Valley received less than $10 per capita in annual foundation giving compared to $102 per capita across the state, according to the report released today by The James Irvine Foundation (available online at www.irvine.org/foundationgiving).

The report, Foundation Giving in California: A snapshot of foundation giving, asset distribution and regional disparities among private and community foundations, provides a comprehensive picture of private and community foundation activity in the state, according to the Foundation. The report analyzed data from 2003, the most recent year for which data could be obtained from the greatest number of foundations.
Key findings from the report include:

• Nearly a third of California counties, all in inland regions of the state, received less than $10 per capita.
• The Inland Empire and the Central Valley, two rapidly growing regions with increasing demands for philanthropic resources, each had only about $1 billion in foundation assets. Nearly 90 percent of the $64 billion in private and community foundation assets is held by foundations in the Bay Area and Los Angeles.
• Community foundations are playing an important role in the state, providing over 15 percent of the giving from community and private foundations.
• More than two-thirds of the 4,500 California nonprofits receiving grants from foundations had annual budgets under $2 million, and nearly half of the grants given to these nonprofits were for less than $10,000.

The future of California depends on how we accommodate the explosive growth projected for the next few decades, said James E. Canales, President and CEO of the Irvine Foundation. By investing in these underserved and rapidly growing regions of the state, we strive to help build a future that expands opportunity for all Californians.

The Inland Empire and Central Valley are the fastest growing regions in California. Population in the Inland Empire has grown from 1.5 million in 1980 to 3.3 million in 2000, and is projected to grow to 8.6 million by 2040. Central Valley population has grown from 4 million in 1980 to 5.7 million in 2000, and is projected to grow to 11.7 million in 2040.

The report identifies community foundations as playing an important role in the overall philanthropic activity in the state. "Community foundations invest locally, understand the needs of the community and provide a wide range of services to donors at all levels. They are uniquely equipped to meet the growing needs of their communities," said Kris Putnam, President of Putnam Community Investment Consulting, adding an investment in community foundations is an investment in California's future.

For its part, The James Irvine Foundation has increased grantmaking in the Inland Empire and Central Valley, investing more than $85 million in those two regions over the past five years. In addition, Irvine launched a program to develop philanthropic resources in regions of the state that have been traditionally underserved by organized philanthropy. Intended to be a $10 million, five-year commitment, the Community Foundation Initiative aims to accelerate growth and development in a subset of California's community foundations, helping them to function as more robust local philanthropic vehicles.

The full report identifies regional and county level snapshots that capture the number of private and community foundations, their assets, total giving in California, and per capita giving. The report also presents a review of budget sizes for California nonprofits that received foundation funding, as well as the geographic distribution of different sized grants. The data utilized in this report were obtained primarily from GuideStar, a research organization that provides information on nonprofits and foundations, using data reported by foundations on their IRS 990 and 990-PF tax forms.

To view or download the report, please visit www.irvine.org/foundationgiving.

The James Irvine Foundation is a private, nonprofit grantmaking foundation dedicated to expanding opportunity for the people of California to participate in a vibrant, inclusive, and successful society. The Foundation’s grantmaking is organized around three program areas: Arts, Youth, and California Perspectives, which focuses on improving decision-making on the significant issues that are shaping California’s future. Since 1937 the Foundation has provided more than $900 million in grants to nonprofit organizations throughout California. With current assets of more than $1.7 billion, the Foundation expects to make grants of $69 million in 2006 for the people of California.

For more information about the Irvine Foundation, please visit our Web site at www.irvine.org or call 415.777.2244.

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