Year-End Thoughts and the �January Effect��

Foundation Search08 Feb, 2023Other

At FoundationSearch, we are frequently asked whether there is a seasonality to foundation giving, as there is in individual giving. Unfortunately, foundations most often don?t report the exact month of their donations, however we can easily determine their fiscal year-end. Why is the year-end date of the foundation important? For a few reasons? foundation_fundraising_year_end_renewed_funding ?Year-end? is the time that funders must ensure that they have met their minimum required donation amounts to qualified donees. The Internal Revenue Service requires that private foundations donate at least 5% of their assets averaged over a 5 year rolling timeframe. If they have not met this donation threshold, they will most likely be looking to meet it before their year-end. This presents an opportunity for charities to apply at an advantageous time.