Total transactions represent the number of gifts and grants processed annually (including supporting organizations). The average transaction size represents the total dollar value of gifts plus the total dollar value of grants divided by the total number of transactions.

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=173)

The field median expense to asset ratio decreased slightly in 2020 from the year before (1.2 percent in 2019), though the median for small community foundations increased significantly over that same time, from 1.6 percent to 2.0 percent. 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=168)

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Just over one quarter of all annual survey participants reported any level of operating deficit in 2020 - which is unchanged from the year prior. For these community foundations, and more generally, operating deficits are covered by unrestricted funds, which limits their flexibility to invest in foundation-operated initiatives and community leadership.

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=168)

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Over three-quarters 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.

Nearly all said they considered a DAF to be dormant if no grant is recommended within five years, with three-quarters considering a DAF inactive after three years. Although few in number, there were instances of the community foundation considering a DAF to be dormant after 10 or more years of inactivity, in cases where a donor establishes the fund with the intention of building its balance to activate the fund toward more impactful grantmaking in the future. (n=179)

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