It may be spring before new grants bloom at Baltimore’s largest charities.
Just as the savings of individuals have slumped, cutting into their donations this holiday season, major institutions making charitable grants have seen their assets decline in a tough economy.
Last month, The Harry and Jeanette Weinberg Foundation said it would not accept any new grant proposals until April 1 due to declining assets and a deep slate of current commitments.
The Weinberg Foundation has seen its assets decrease to approximately $2 billion this year from $2.3 billion last year, Treasurer Barry Schloss said.
In a statement announcing the halt on proposals, however, foundation President Shale Stiller pointed to the organization’s holdings in commercial real estate, which he said comprise 40 percent of its assets.
“We’re just trying to be smart about these things,” Schloss said. “We’ve been taking these letters of inquiry, and it didn’t make sense to take them when we couldn’t be sure whether we could say yes or no.”
In an informal survey conducted of its members in early October, the Association of Baltimore Area Grantmakers found assets at one-third of those organizations had decreased by 21 percent or more, association Executive Director Betsy Nelson said. The hardest-hit had seen their assets plunge by as much as 45 percent, she said.
“Most of them are really dependent upon the financial markets,” Nelson said. “Particularly the ones that are endowed, their grantmaking is directly the result of how large their assets are.”
The majority of organizations have put a halt, formal or not, to new grants and focused on long-standing commitments and partners, Nelson said.
Among those employing that strategy is the Goldseker Foundation. President and Chief Executive Officer Timothy Armbruster said the foundation’s assets have also fallen roughly 20 percent, forcing it to focus on its most important, long-term projects.
“We have a little less money to work with,” he said. “And taking care of the immediate future with what we consider the most important projects, we’re going to be cautious about taking on new grants.”
