Foundations’ Endowed Portfolios Produced Double-Digit Investment Returns in 2024; Long-Term Return Data Also Positive

WASHINGTON - In the volatile but ultimately supportive market environment of 2024, average annual returns on foundation endowments landed in double-digit positive territory from the previous year for the 255 foundations surveyed in the annual Council on Foundations–Commonfund Study of Investment of Endowments for Private and Community Foundations® (CCSF; the “Study”).

The average 2024 calendar year return on these endowed funds for the 154 private foundations participating in the Study was 10.3 percent, down from 12.6 percent reported for the 2023 Study. Similarly, for the 101 participating community foundations, the average 2024 return was 11.0 percent, from 14.1 percent in 2023. This marks the second year in a row that both foundation segments reported double-digit returns, stabilizing from the dramatic year-over-year swings reported in the prior two studies, including double digit declines in 2022 (all return data reported net of fees).

Strong one-year returns bolstered longer-term returns, which reflect foundations’ ability to finance their missions and program commitments going forward. Ten-year average annual returns increased for both segments: Private foundations reported 10-year returns of 7.3 percent (up from 7.1 percent in 2023 and matching the rate in 2022) and community foundations reported 10-year returns of 7.0 percent (from 6.2 percent last year and 6.4 percent in 2022).

For the first time in Study history, foundations reported for the 15- and 20-year net annualized returns on their endowments. Private foundations reported 7.5 percent and 6.4 percent on average for the two time periods, respectively, and community foundations reported 7.2 percent and 6.3 percent.

“We’re heartened to see double-digit positive returns for the second year in a row as many foundations increase their giving to further support nonprofit partners,” Kathleen Enright, President and CEO of the Council on Foundations, and George Suttles, Executive Director of Commonfund Institute, said in a joint statement. “As new challenges arise and endowments are inevitably affected by the rising and falling of the markets, we’re confident that foundations will continue to serve as bedrocks for the communities and causes they support, today and tomorrow.”

With data reported by 255 private and community foundations representing $104.9 billion in combined assets, the CCSF is the most comprehensive annual survey of its kind. The 2024 Study marks the 13th year that the Council on Foundations and Commonfund Institute, two leading organizations in foundation investment and governance policies and practices, have partnered to produce this research. The Study reports data from private and community foundations separately to reflect the differing structures of the two foundation types and, for deeper analysis, also breaks both types into three cohorts segmented by endowment size.

For more details and to download the report in full, please visit Commonfund's report page or the Council's report page.

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About the Council on Foundations  
The Council on Foundations is a nonprofit membership association that serves as a guide for philanthropies as they advance the greater good. Building on our 75-year history, the Council supports over 1,000 member organizations in the United States and around the world to build trust in philanthropy, expand pathways to giving, engage broader perspectives, and co-create solutions that will lead to a better future for all. Learn more about the Council and become a member by visiting www.cof.org. 

About Commonfund  
Commonfund is a leading asset management firm that empowers educational institutions, foundations, pension funds, family offices, RIAs, and other sophisticated investors to achieve their most important goals. Through our Outsourced CIO business, we provide nonprofits access to world-class investment management solutions. Our CF Private Equity business provides access to private equity investments for both nonprofit and for-profit organizations seeking to diversify their portfolios with private investments. Our Commonfund Institute is among the nation’s most trusted sources for relevant, useful, and proprietary data, analytics, and best practices in financial management. All our businesses are united by a relentless commitment to investment performance matched by an equally relentless commitment to the values of trust, transparency, and ethical behavior that have inspired us since our founding more than fifty years ago. For more information visit www.commonfund.org. 

About Commonfund Institute  
Commonfund Institute is among the nation’s most trusted sources for relevant, useful, and proprietary data, analytics, and best practices in financial management. The Institute provides a wide variety of resources, including conferences, seminars, roundtables, and online learning through Commonfund Institute Online. Insights cover topics such as endowments and governance; proprietary and third-party research such as the Commonfund Benchmarks Studies®; publications including the Commonfund Higher Education Price Index® (HEPI); and events such as the annual Commonfund Forum and Investment Stewardship Academy.