New Report: Extent and Implications of Foundation “Sunsetting” Trend

Conservative public-policy foundations have far fewer resources than their liberal counterparts, raising questions about the implications for the future of public-policy research

NEW YORK, NY — Over time, many large U.S. charitable foundations have drifted away from their founders’ original missions. To combat this phenomenon, a growing number of foundations are adopting “sunset provisions,” which mandate that the foundation disburse its assets and suspend operations by a specified date. In a new Manhattan Institute report, Vice President for Research and Publications Howard Husock explores the extent of this “sunsetting” trend and its potential implications for the future of charitable giving and political activism.

The report finds that, of the 64 policy-oriented foundations examined:

• Those that lean left control some $38 billion in assets, compared to $7 billion on the right.
• Seven left-leaning and eight right-leaning foundations chose to sunset between 2000 and 2015.
• Sunsetting foundations on the right are moving toward the exit at a much faster pace, distributing 15 percent of their assets each year on average, compared to just 7 on the left.

In other words, major right-leaning foundations are moving to close their doors at the same time the growth of overall assets on the left is far outstripping those on the right. While questions remain about the long-term effects of these trends on policy, this research makes clear that, at least in terms of available financial assets, left-leaning foundations will continue to have greater capacity than their right-leaning counterparts.

Click here to read the full report.