The distribution rate is calculated by dividing the foundation’s total grants by total assets (including supporting organizations) at the end of the foundation’s fiscal year. The percentage of total assets in donor-advised funds (Percent Total Assets DAF) is the total amount of IRS-classified donor-advised funds divided by total foundation assets.

Larger community foundations tend to maintain relatively complex operating models, requiring a higher number of specialized staff who will be less likely to manage donor funds. (n=167)

Expense to asset ratios among annual survey participants remain consistent with 2020 levels, with an only slight decrease in the overall median (from 1.1% in 2020). As is generally the case, larger community foundations achieve an economy of scale that results in typically lower ratios than for smaller community foundations, though operating model differences at individual community foundations will have an impact on this metric. (n=181)

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Two-thirds of all annual survey participants reported that they ended FY2021 having generated surplus revenue, which is often reinvested back into a given foundation's community leadership efforts.

Administrative fees are the main source of community foundation operating revenues field-wide. Larger community foundations are more likely to supplement fees with fee for service revenues, while smaller community foundations tend to do more direct fundraising to support operations. Community foundations often seek to generate surplus revenues that could be reinvested into community leadership initiatives.

Averages were used to total 100%. (n=157)

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Over 80 percent of respondents said that they will first attempt an appeal to a DAF holder to activate the fund after a predefined period of time after which the fund is considered dormant. Follow-up step are often included in the donor's original fund agreement; many said that those steps included one or both of distributing DAF dollars in alignment with the donor's original intent and transferring the funds into the community foundation's unrestricted funds.

Virtually all respondents said they considered a DAF to be dormant if no grant is recommended within five years, with 80 percent considering a DAF inactive after three years. In the extent to which there are cases where the time horizon extends to 10 or more years, it is likely to be a case of where a donor intends to build a fund balance to activate the fund toward more impactful grantmaking in the future (10 or more years). (n=136)

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