When foundations are created from health-care nonprofits, the resulting organizations tend to be well-managed and continue making positive contributions to their communities, a new study says.
The report, “The Business of Giving: Governance and Asset Management in Foundations Formed from Health Care Conversions,” was published by Grantmakers in Health, Washington, D.C.
Two in three of 174 foundations surveyed were formed from nonprofit hospitals, and more than that fund only health-related projects, the report says.
Combined, these foundations held assets of $18.3 billion last year, up $2 billion over 2003 and doubling since 1997, the report says, with the median foundation spending about 1.2 percent of assets on administrative costs.
More than nine in 10 groups surveyed have finance and investment committees, the study says, and more than two in three use a competitive process in choosing a financial auditor.
Almost nine in 10 prohibit discretionary grants by board members, and fewer than two in 10 provide compensation to board members.