The case
Foundations are currently presumed to have assets of more than USD 1.5 trillion worldwide. Nearly three-quarters of these institutions (estimated at 260,000 in 39 countries) have emerged over the past 25 years. These are the findings of a study by scientists from Harvard University in the US with the support of UBS: Philanthropy is growing rapidly worldwide, according to the study. Wealthy people, families and businesses have been more generous and have wanted to increase the impact of their investments. The resources have been invested in selected areas, the most popular one being education. However, the cooperation between foundations is limited, i.e. 58% of the institutions studied do not cooperate with other foundations.
Source: From the NZZ e-paper (Michael Ferber) 26 April 2018
The commentary
The study shows a significant geographic concentration. Around 60% of the foundations covered by the study are based in Europe, 35% in North America. Half of these institutions do not have paid employees and only have a small budget of less than USD 1 m. Nine out of ten foundations have assets of less than USD 10 m. The distributions of the foundations averaged at 10%. More than 90% of the foundations are independent entities, but there are clear regional differences. In Latin America, almost half of the institutions are corporate foundations, and in China, 38% of the foundations are related to the state. In African countries, family foundations take up an important position with a rate of 35%.