Citation: Williams, J., Veach, C., & Kienker, B. (2020). An Evaluation of Private Foundation Model Portfolios,
Investment Returns, & Payout Rates. Council of Michigan Foundations.
Commissioned by the Council of Michigan Foundations | December 2020
The following resource was contributed to NCNE by:
Jeff Williams, M.A., M.B.A
NCNE RAN Member
Director, Community Data and Research Lab
Dorothy A. Johnson Center for Philanthropy
Grand Valley State University
As a leadership organization that puts equity at the center and is committed to creating space for reflective conversation, the Council of Michigan Foundations (CMF) continues to ask the question: Have the market forces and growth in philanthropy—and for CMF, growth in Michigan philanthropy specifically—changed enough to warrant an increase in the 5% rule for private foundations?
In 2020 CMF partnered with the Dorothy A. Johnson Center for Philanthropy and Plante Moran Financial Advisors to deepen and expand past research exploring the 5% payout rate to help answer this question, building on the learnings of previous studies we’ve commissioned over the past 20 years.
An Evaluation of Private Foundation Model Portfolios, Investment Returns, & Payout Rates captures what we believe is the most comprehensive snapshot of payout data available to foundations to date. We value this research as a tool for private foundations in Michigan and across the sector.