Charitable Foundations See Endowments Drop
The federal government requires charitable foundations to pay out 5 percent of their assets each year. Because assets are falling, many foundations announced at the end of last year they would cut their donations to charitable causes in 2009.
Things seem to be looking up this year for some groups. After dropping 18 percent in 2008, The Broad Foundations of Los Angeles have already seen the endowments improve 10 percent in the first five months of 2009.