Faith-Based Public Foundations: Identifying the Field and Assessing Its Impact

Abstract

Charitable activity is a core tenet of most faith traditions, and many charitable organizations have a religious identity. However, little is known about the prevalence and scale of faith-based foundations, and how they differ from secular foundations. This study identifies the field of public foundations, differentiates between faith-based and secular foundations, and compares their characteristics by analyzing Form 990 data. Our analysis estimates that 24% of all public charities operate as foundations and that 17% of public foundations are faith-based. We use these findings to generate first-ever estimates for the entire field of public foundations. Based on our analysis and calculations using nonprofit sector data, there are approximately 300,000 public foundations in the U.S., and we estimate that 52,000 of them are faith-based. Collectively, these faith-based public foundations have at least $90 billion in assets, and in 2015, they contributed at least $8 billion to charitable causes. Additional analyses comparing faith-based and secular foundations indicate that faith-based foundations tend to be older, have greater revenue and more assets, receive less money from the government, and distribute more money in grants, especially to international causes. This study provides an important lens through which to examine the field of public foundations and better understand similarities and differences among faith-based and secular foundations. It can help scholars analyze relationships between religion and philanthropy, help grantmakers assess foundations through a faith-based-secular grid, and help grantees identify funders who share a similar orientation toward religion. Overall, this study reveals the meaningful presence of faith-based foundations, indicates the scale of their impact, and underscores religion's enduring and significant influence in the philanthropic sector.

Activity and Identity: Uncovering Multiple Institutional Logics in the Nonprofit Sector

“…Take religion as an example. Religion is a well-known, yet underexplored, logic operating in the nonprofit sector that exhibits characteristics of both an activity and an identity (Austin et al, 2022; Clerkin & Grønbjerg, 2007; Ralph et al, 2022). Prior research establishes that religious congregations are the most numerous type of nonprofit organization (Brauer, 2017; Fulton & King, 2023), that they receive nearly one-third of charitable dollars (Giving USA, 2020) and that they mobilize more volunteers than any other type of nonprofit (Grønbjerg & Never, 2004).…”

Giving and going: US congregational participation in disaster response

“…The paucity of research specifically about congregation‐based disaster aid required an expanded literature review to include prior work on faith‐based organizations (FBOs). Generally, the literature finds faith‐based contributions to disaster relief are widespread, significant, and possibly under‐estimated (Ralph et al, 2022). Disaster response efforts have been observed across all religions and denominations, as well as across varying organizational sizes and geographic scopes (Baidhawy, 2015; Gaillard & Texier, 2010; Joshi, 2010; Wisner, 2010).…”