Wisconsin Stateof Philanthropy Report 2009 by DFW

Wisconsin State of Philanthropy Report
2009

D
onors Forum of Wisconsin is proud to present this
premiere report on Wisconsin giving. The Wisconsin
State of Philanthropy Report was based upon data
gathered from the Funding Information Center at Marquette
University, as well as the results of a survey of Wisconsin
grantmakers conducted by the Donors Forum of Wisconsin.
The State of Philanthropy Report includes a detailed look at
grantmaking in Wisconsin. The first local publication of its kind,
this report not only includes totals for giving in Wisconsin, but
includes a deeper look into how philanthropy in Wisconsin is
practiced.
Our vision for this research report was to create a dynamic,
frequently updated knowledge base of current and detailed
information on Wisconsin’s foundations. Through this research
we have created a report that strengthens Wisconsin grantmakers’
abilities to tell their giving stories, highlights the impact of
Wisconsin’s grantmaking community, and accurately depicts the
scope, diversity, and depth of Wisconsin philanthropy.
table of contents
State of Philanthropy. . . . . . . . . . . . . . . . . . . . . . . . . 2
Key Findings
About Philanthropy in Wisconsin
A Community of Giving. . . . . . . . . . . . . . . . . . . . . . 4
Top Ten Foundations
Foundation Giving
Individual Giving
Other Grantmaking Types
Regional Philanthropy
The Changing Economy . . . . . . . . . . . . . . . . . . . . . 14
Economic Impact
Projected Grantmaking Budgets
Impact on the Nonprofit Sector
Where The Dollars Go. . . . . . . . . . . . . . . . . . . . . . . 18
Types of Support
Program Areas
Focus on Health
Focus on Education
Insider’s Guide to Foundations. . . . . . . . . . . . . . . 22
Inside the Organization
Managing Mission
Challenges Facing the Philanthropic Sector
Philanthropic Successes
References and Resources. . . . . . . . . . . . . . . . . . . . 28
About the Report

Key Findings
State of Philanthropy
2
|WisconsinStateofPhilanthropy2009
Charitable Contributions Total giving in Wisconsin has increased each year since 2004, resulting in record-
setting total giving amounts in 2006.
$3.51 billion
given in Wisconsin
10 percent
increase in total
charitable giving
$3.02 billion
given by individuals in
Wisconsin
12 percent
increase in giving by
individuals in Wisconsin
foundation facts Wisconsin foundation giving has increased every year since 2002, increasing by an average of 4.7 percent
each year. Assets have been increasing even faster, by an average of 5.7 percent each year through 2007.
1,290
Wisconsin foundations
$7.25 billion
Wisconsin foundation
assets
7 percent
increase in assets
$497 million
Wisconsin foundation
grantmaking

About Philanthropy in Wisconsin
state of philanthropy
T
he philanthropic sector in Wisconsin includes diverse vehicles for making all
sorts of donations to nonprofit organizations. Individuals, families, charitable
organizations, charitable funds and corporations work together to provide
donations of grant dollars, volunteer service, board service, technical assistance and
in-kind donations of products and services. Among the different types of philan-
thropic organizations are corporate giving programs, donor advised funds, supporting
organizations, federated funds, charitable trusts, and private, community, corporate,
and operating foundations.
Individual Giving
Individual giving accounts for the vast majority of giving in the U.S. and for more
than 80 percent of giving in Wisconsin. In 2006, more than 80 percent of charitable
dollars in Wisconsin came from individuals, totaling over $3 billion. Individuals can
make donations to organizations simply by making a contribution to an organization
they support. Individuals can also participate in fundraisers, pay membership dues
to museums, houses of worship or other nonprofits and institutions, or make dona-
tions of household goods. Many individuals also donate their time and expertise by
serving as volunteers or on boards of nonprofit organizations.
Foundation Giving
Over the past several years foundations have been increasing in number and influence
across the country. Foundations, charitable organizations that make grants to non-
profit organizations, include private foundations, community foundations, corporate
foundations and operating foundations. Since 1978, an increasing proportion of
giving in the U.S. is carried out through foundations, increasing from 5.5 percent to
11.6 percent of total giving, according to Giving USA. Foundations are unique in that
they have several tax advantages over individual giving, but also have strict reporting
and payout requirements..
Wisconsin is home to nearly 1,300 private foundations, a number that has been
steadily increasing since 2000, by an average of 2.3 percent each year. In 2007 there
was a 3.2 percent increase in the number of foundations. Foundation assets and
grants have been increasing each year; assets by an average of 5.7 percent per year
and grants by an average of 4.7 percent per year.
In 2007, Wisconsin foundations had combined assets of over $7.25 billion, and broke
their previous record for charitable giving, contributing nearly $500 million to chari-
table organizations around the globe.
The majority of foundations in Wisconsin have less than $1 million in assets. In 2006,
65 percent of foundations had less than $1 million in assets and in 2007 that number
dropped slightly to 57 percent. The median asset level for Wisconsin foundations
was $685,427 in 2007.
Nearly all foundations grant less than $1 million annually. In 2007, only 8 percent of
foundations gave out more than $1 million in grants, up from 6 percent in 2006. The
median grant amount paid out by Wisconsin foundations in 2007 was $50,000.
0
2,000
4,000
6,000
8,000
2003 2004 200720062005
$387 $497$479$454$395
$6,241
$5,549
$5,254
$4,772
$7,254
Grants Paid
Assets
Total Wisconsin Foundation Assets and Grants Paid By Year
Foundation assets and grants have been increasing each year; assets by
an average of 5.7 percent and grants by an average of 4.7 percent. Amount
show in millions.
Source: Foundation Information Center, DFW 2008
3

Top Ten Foundations
A Community of Giving
T
here are many ways to make charitable contributions, and Wisconsin residents
use many tools to make donations. Effective philanthropy can take numerous
forms, including: private foundations, corporate foundations, and giving
programs; community foundations; individual giving; grantmaking public charities;
operating foundations. Each of these types of giving are described in detail in this
section.
Though most of the philanthropic giving in Wisconsin comes from individuals, founda-
tion giving in Wisconsin is significant in scope. More than 85 percent of foundations
in Wisconsin are private foundations, and private foundations hold more than two-
thirds of the foundation assets in the state. However, several of the top givers and asset
holders in Wisconsin are corporate and community foundations.
Wisconsin’s Largest Foundations
Foundation assets are heavily concentrated in the state’s largest foundations. The top
ten foundations by assets hold 39 percent of all foundation assets in the state. The top
50 foundations by assets account for over two-thirds of the foundation assets, meaning
that the top 4 percent of foundations hold over 66 percent of the foundation assets.
Many Wisconsin foundations calculate grantmaking budgets that are not determined
solely by their assets, which accounts for some discrepancies between the 10 Wisconsin
foundations with the greatest assets and the 10 with the most grantmaking by dollar
amount. Some foundations make grants based upon on an average of assets over a
period of years. This approach is meant to preserve stability in grantmaking, so that
changes in the market or in major gifts (to or from the foundation) do not drastically
affect year-to-year grantmaking budgets.
Some foundations make grants that are far more than the minimum 5 percent of their
assets, sometimes because they are spending down their assets. Other foundations are
pass-through foundations, which have smaller assets, but routinely transfer funds from
other sources into the foundation. These types of budgeting generate discrepancies
between the ten largest foundations by assets and by grants. The ten largest founda-
tions in Wisconsin by grants paid includes five foundations which are not on the top
ten list by assets: the Argosy Foundation, the Helen Bader Foundation, the Overture
Foundation, the Jane Bradley Pettit Foundation, and the Cudahy Foundation. Grants
paid in 2007 by the ten largest Wisconsin foundations by grants range from $10.4
million to $39.6 million, with a median of $14.1 million.
National Foundations
In addition to Wisconsin grantmakers, national grantmakers also play a large role in
giving to organizations in Wisconsin. The top ten non-Wisconsin foundations giving
in Wisconsin contributed a combined total of over $45 million to Wisconsin nonprofits
in 2007, according to Foundation Center. These national funders provide much-needed
support to Wisconsin nonprofit organizations.4
Aggregate Data for Foundations by Type, 2008
Number % Assets
(m)
% Total Giving
(m)
%
Private 1,137 88.14 $5,067.55 69.86 $332.34 66.82
Corporate 113 8.76 805 11.11 91.74 18.44
Community 32 2.48 1,341.57 18.49 71.35 14.35
Other1 8 0.62 39.08 0.54 1.95 0.39
Total 1,290 100.00 7,254.10 100.00 $497.38 100.00
1
Denotes operating and non-classified foundations
0
2,000
4,000
6,000
Community
$71 $332$92
$806
$1,342
$5,068
Grants Paid
Assets
Corporate Family & Independent
Source: Funding Information Center, DFW 2008
Foundation Assets and Grants by Type, 2008
Amounts are shown in millions.

Top Ten Foundations
a community of Giving
Top Ten Wisconsin Foundations by Total Giving, 2007
The top ten foundations by total giving together gave nearly $179, which
accounts for 36 percent of foundation giving in Wisconsin in 2007. The
top 5 percent of foundations account for nearly two-thirds of the founda-
tion giving in 2007. Amounts are shown in millions.
1. The Lynde and Harry Bradley Foundation. . . . . . . . . $39.6
2. Greater Milwaukee Foundation . . . . . . . . . . . . . . . . . $28.8
3. Reiman Foundation, Inc.. . . . . . . . . . . . . . . . . . . . . . . $20.9
4. Argosy Foundation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $15.9
5. Northwestern Mutual Foundation . . . . . . . . . . . . . . . $15.2
6. Helen Bader Foundation. . . . . . . . . . . . . . . . . . . . . . . $12.9
7. Community Foundation for the Fox Valley Region. . . $12.2
8. Pleasant T. Rowland Foundation . . . . . . . . . . . . . . . . $11.5
9. Kohler Foundation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $11.5
10. The Overture Foundation . . . . . . . . . . . . . . . . . . . . . $10.4
Top Ten National Foundations by Assets, 2008
The top ten foundations by assets in the U.S. hold over $117 billion in
assets. Wisconsin’s largest foundation, The Lynde and Harry Bradley
Foundation, currently ranks the 83rd largest in the nation. Amounts are
shown in billions.
1. Bill and Melinda Gates Foundation . . . . . . . . . . . . . . $38.9
2. J. Paul Getty Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11.1
3. The Ford Foundation. . . . . . . . . . . . . . . . . . . . . . . . . . $11.0
4. Robert Wood Johnson Foundation. . . . . . . . . . . . . . . $10.7
5. The William and Flora Hewlett Foundation. . . . . . . . $ 9.3
6. W. K. Kellogg Foundation . . . . . . . . . . . . . . . . . . . . . . $ 8.1
7. Lilly Endowment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7.7
8. John D. and Catherine T. MacArthur Foundation . . . $ 7.1
9. The David and Lucile Packard Foundation. . . . . . . . $ 6.6
10. The Andrew W. Mellon Foundation. . . . . . . . . . . . . . $ 6.5
Source: Foundation Center 2008
Top Ten Non-Wisconsin Foundations Giving in Wisconsin, 2007
The top ten non-Wisconsin foundations contributing in Wisconsin gave
a total of $43 million in 2007. Only two of the top ten non-Wisconsin
foundations contributed more than $5 million to Wisconsin foundations
in 2007. Amounts are shown in milions.
1. The Grainger Foundation. . . . . . . . . . . . . . . . . . . . . . $14.6
2. Robert Wood Johnson Foundation. . . . . . . . . . . . . . . $ 7.0
3. Ewing Marion Kauffman Foundation. . . . . . . . . . . . . $ 4.0
4. Fred C. and Katherine B. Andersen Foundation. . . . $ 3.9
5. The Kresge Foundation. . . . . . . . . . . . . . . . . . . . . . . . $ 2.9
6. The Joyce Foundation. . . . . . . . . . . . . . . . . . . . . . . . . $ 2.7
7. The Annie E. Casey Foundation. . . . . . . . . . . . . . . . . . $ 2.4
8. NoVo Foundation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.2
9. Otto Bremer Foundation. . . . . . . . . . . . . . . . . . . . . . . $ 1.9
10. U.S. Bancorp Foundation . . . . . . . . . . . . . . . . . . . . . $ 1.6
Source: Foundation Center, DFW 2008
Top Ten Wisconsin Foundations by Assets, 2007
The top ten Wisconsin foundations hold 39 percent of all foundation
assets. The top 4 percent of foundations in the state hold over 66
percent of the foundation assets. Amounts are shown in millions.
1. The Lynde and Harry Bradley Foundation. . . . . . . . . $815.0
2. Greater Milwaukee Foundation . . . . . . . . . . . . . . . . . $574.4
3. Kern Family Foundation, Inc. . . . . . . . . . . . . . . . . . . . $385.0
4. Kohler Foundation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $216.4
5. Reiman Foundation, Inc.. . . . . . . . . . . . . . . . . . . . . . . $203.3
6. Northwestern Mutual Foundation . . . . . . . . . . . . . . . $164.0
7. Community Foundation for the Fox Valley Region. . . $162.2
8. Madison Community Foundation. . . . . . . . . . . . . . . . $155.0
9. Pleasant T. Rowland Foundation . . . . . . . . . . . . . . . . $101.3
10. Siebert Lutheran Foundation. . . . . . . . . . . . . . . . . . $100.0
5

Foundation Giving: Private Foundations
a community of giving
T
he vast majority of foundations in Wisconsin are private foundations, which
include family foundations and independent foundations. There is no legal
distinction between family and independent foundations, but most people
consider family foundations to be organizations started by members of a family who
either sit on the board of trustees themselves or whose descendents sit on the board
of trustees. Independent foundations are generally understood to be foundations with
little or no family involvement. Since there is no legal distinction between these types,
we refer to both of these types of foundations as private foundations.
Over the past several years foundations have been increasing in number and influence
across the country. Foundations, charitable organizations that make grants to nonprofit
organizations, include private foundations, community foundations, corporate foun-
dations and operating foundations. Since 1978, an increasing proportion of giving in
the U.S. is carried out through foundations, increasing from 5.5 percent to 11.6 percent
of total giving, according to Giving USA. Foundations are unique in that they have
several tax advantages over individual giving, but also have strict reporting and payout
requirements.
Private foundations can be found in every region of the state, and contribute vital grant
funding to the communities they reside in, and across the state, country, and even
internationally. Private foundations are instrumental in creating livable communi-
ties through their contributions, and are often the catalysts that help organizations to
generate public support for projects and community initiatives.
Private philanthropy goes well beyond dollars donated as foundation trustees and staff
often lend their expertise to new nonprofits, and help organizations to grow and thrive.
Successful public-private partnerships also rely on input and support from private
foundations. Public-private partnerships have led to new community initiatives and
new focused strategic methods to tackle difficult community issues.
Assets and Giving
Private foundations make up the majority of foundation giving in Wisconsin, accounting
for two-thirds of all foundation grants in 2007. Family and independent foundations
also hold 70 percent of the foundation assets in Wisconsin. Though private founda-
tions hold most of the foundation assets, only six of the top ten largest foundations in
Wisconsin by assets are private foundations, the other four are corporate and commu-
nity foundations. Of the 50 largest foundations by assets, 32 are private foundations.
The majority of private foundations in Wisconsin are modest in size, with less than
$1 million in assets and run either by volunteers out of their homes or are housed in
bank trusts and law firms. Nearly two-thirds of private foundations gave less than
$100,000 in grants in 2007, and only 5 percent gave more than $1 million that year.
More information about the inner workings of private foundations in Wisconsin is
discussed in the Insider’s Guide to Foundations.6
Wisconsin’s Top Ten Private Foundations by Assets, 2007
1. THE LYNDE AND HARRY BRADLEY FOUNDATION $815
2. KERN FAMILY FOUNDATION, INC. $385.0
3. KOHLER FOUNDATION $216.4
4. REIMAN FOUNDATION, INC. $203.3
5. PLEASANT T. ROWLAND FOUNDATION $101.3
6. SIEBERT LUTHERAN FOUNDATION, INC. $100.0
7. HERZFELD FOUNDATION $84.4
8. PHILLIPS FOUNDATION $83.3
9. DANIEL M. SOREF CHARITABLE TRUST $79.3
10. JUDD S. ALEXANDER FOUNDATION $75.3
Amounts are shown in millions

Foundation Giving: Corporate Foundations
W
isconsin’s vibrant corporate philanthropic sector encompasses a variety of
sizes and forms of giving. Corporate giving often goes beyond the support of
nonprofits to include civic organizations, community initiatives and special
projects that help in the promotion of the community they work and live in. The role
of corporate giving is often as initial investor or fundraiser for nonprofits. Their influ-
ence is critical in the promotion of awareness of key community needs.
Types of Corporate Giving
Corporate foundations do not represent the entire scope of corporate charitable giving.
Just as individuals outnumber and outspend private and family foundations, corpo-
rate giving programs outnumber corporate foundations. There are many reasons for
this discrepancy. Foundation giving has several advantages, but also has a few extra
regulatory hurdles, making it the right choice for many larger corporations, and a
less realistic choice for most smaller corporations. Due to these differences, corpo-
rate foundations make up only a relatively small proportion of corporate donations.
Wisconsin corporate foundations have combined assets of nearly $806 million, and
gave out nearly $92 million in grants in 2007.
Since the majority of corporations in Wisconsin making charitable contributions do so
through corporate giving programs and therefore are not subject to the same reporting
requirements as corporate foundations, it is harder to track and measure their giving.
As a result, the true level of grantmaking by corporations is difficult to capture, and
is likely much higher than the level indicated by the data in this report. In addition
to the monetary contributions made by corporate foundations and giving programs,
corporations often make in-kind gifts of their company’s products or services to the
nonprofit organizations they support. Other common in-kind gifts include gifts of
office furniture and equipment, office and meeting space, loaned executives, graphic
design and printing services.
Employee Partnerships
One characteristic that makes corporate foundations unique is in the types of grants
they make in partnership with their employees. Corporate foundations are much more
likely to provide challenge or matching grants than community or private foundations,
in part because many corporations provide employee matching gifts. Matching gifts are
when a corporation offers to match the giving of their employees, or to match dollars
raised by an organization for a specific project, thereby providing an incentive for indi-
viduals to make contributions since they know the value of their gift will be increased
due to the promise of the corporation to match the donated funds. Corporations
promote employee giving in other ways as well, such as making financial contribu-
tions that allow their employees to spend time volunteering, and conducting employee
giving campaigns.
7
Wisconsin’s Top Ten Corporate Foundations by Assets, 2007
1. NORTHWESTERN MUTUAL FOUNDATION $164
2. MEAD WITTER FOUNDATION, INC. $72.8
3. WINDHOVER FOUNDATION $68.5
4. OSCAR RENNEBOHM FOUNDATION, INC. $60.2
6. LADISH COMPANY FOUNDATION $32.0
7. WISCONSIN ENERGY CORP. FOUNDATION $30.4
8. CORNERSTONE FOUNDATION OF NORTHEASTERN WISCONSIN, INC. $27.4
9. ALLIANT ENERGY FOUNDATION, INC. $25.6
10. WISCONSIN PUBLIC SERVICE FOUNDATION, INC. $22.6
5. JOHNSON CONTROLS FOUNDATION $48.9

Foundation Giving: Community Foundations
W
isconsin is home to over 30 community foundations across the state. This
strong network of community philanthropy is the cornerstone of Wisconsin’s
charitable giving landscape. Their impact in our state is expansive and vital
to many of our communities. It is through their work that we benefit from having
substantial endowments in communities as large as Milwaukee and as small as New
Richmond, Wisconsin. These permanent endowments provide needed philanthropic
resources for now and for the future.
National Standards
Wisconsin leads the nation in the number of community foundations achieving U.S.
National Standards for Community Foundations. Their leadership in the national
standards process has led to the development of a robust peer-review process found
only among Wisconsin community foundations with the focus on best practices in
governance, stewardship, transparency and community leadership. Through adopt-
ing best practices they have embraced a role in developing and using their knowledge,
networks, reputation and ability to contribute and leverage resources to drive change
for the betterment of their communities.
According to Foundation Center, community foundations are especially prevalent in
Midwestern states. The Midwest is home to more than 45 percent of the nation’s com-
munity foundations, and Wisconsin ranks fifth out of eight Midwest states and ninth
nationally in total number of community foundations.
Regional Leadership
Though community foundation giving is primarily place-based, they offer a wide array
of venues for giving from scholarships, field of interest, nonprofit agency and donor
advised funds to supporting organizations, all of which support nonprofit organiza-
tions in every area from arts to human services to health and welfare.
Nearly every part of Wisconsin is served by community foundations located in more
than 22 counties throughout the state. Wisconsin’s community foundations provide
a significant amount of grant support for Wisconsin nonprofits. In many areas of
Wisconsin, community foundations are the only significant forms of foundation
grantmaking.
8
Top Ten States by Number of Community Foundations, 2007
1. MICHIGAN 99
2. INDIANA 76
3. OHIO 69
4. CALIFORNIA 64
5. MISSOURI 50
6. PENNSYLVANIA 37
7. NORTH CAROLINA 32
8. TEXAS 31
9. WISCONSIN 31
10. FLORIDA 29
Source: Foundation Center 2008

Foundation Giving: Community Foundations
Assets and Giving
Community foundations are technically classified as public charities, since their sup-
port comes from community donations rather than a single family or corporation.
However, community foundation tax data is collected by the major foundation data
sources.
Community foundations’ assets total more than $1.3 billion, and they contributed
more than $71 million in grants in 2007. Community foundations are an especially
vital source of support outside the southeastern region of the state, where the major-
ity of foundation giving is concentrated. In 2007, community foundations held more
than $673 million in assets and made over $35 million in grants in the counties outside
southeastern Wisconsin.
Donor Advised Funds
One of the major activities of community foundations is managing donor advised
funds. When donors establish these types of funds, they determine its purpose. Each
year, a portion of the fund is used to make charitable grants in accordance with the
donor’s intent. Community foundations typically manage a large number of donor
advised funds, and these funds comprise a large proportion of community foundation
assets and giving.
Geographic Affiliates
Not every community has the infrastructure to develop a free standing community
foundation. To ensure communities no matter their size have the opportunity to grow
and build placed based philanthropy community foundations have created the perfect
vehicle geographic affiliates.
Geographic Affiliates are unique place based giving structures run by committed
leaders and donors who share a common passion for the future of the place they call
home.
Each geographic affiliate fund is led by a local advisory committee made up of com-
munity volunteers, who under the guidance of an existing community foundation help
identify current and emerging charitable needs in their communities, provide com-
munity leadership and are involved in efforts to encourage charitable giving among
residents. It is home-grown, hometown philanthropy and it is making a difference
that is sustainable.
9
Wisconsin’s Top Ten Community Foundations by Assets, 2007
1. GREATER MILWAUKEE FOUNDATION $574.4
2. COMMUNITY FOUNDATION FOR THE FOX VALLEY REGION $162.2
3. MADISON COMMUNITY FOUNDATION $155.0
4. OSHKOSH AREA COMMUNITY FOUNDATION $72.6
5. GREATER GREEN BAY COMMUNITY FOUNDATION, INC. $60.2
6. DULUTH-SUPERIOR AREA COMMUNITY FOUNDATION $53.2
7. RACINE COMMUNITY FOUNDATION, INC. $34.2
8. LA CROSSE COMMUNITY FOUNDATION $29.5
9. COMMUNITY FOUNDATION OF GREATER SOUTH WOOD COUNTY $27.9
10. COMMUNITY FOUNDATION OF NORTH CENTRAL WISCONSIN $27.3

Individual Giving
I
ndividuals are not mandated by law to provide information on their charitable giv-
ing, as foundations are required to do. The best source of information on individual
giving comes from the IRS Statistics of Income data tables, which is publicly avail-
able tax data on charitable contributions and bequests claimed as deductions on income
taxes. IRS tax data only includes charitable gifts which are claimed on tax forms as
itemized deductions, and therefore do not include all individual charitable giving. It is
estimated that between 20 percent and 40 percent of taxpayers itemize their charitable
deductions, according to the Forum of Regional Associations of Grantmakers. The
latest available data on individual giving is from the 2006 tax year.
In 2006, individuals in Wisconsin claimed a total of over $3.02 billion in charitable
contributions. Wisconsin was ranked 20th in the country for total contributions by
individuals, the same as Wisconsin’s ranking by population. In comparison, California
had the highest contributions in 2006, with $24.36 billion, and North Dakota had the
lowest with $206 million. Wisconsin ranked 29th for contributions as a percentage
of adjusted gross income, at 2.14 percent. Wisconsin’s average charitable contribution
claimed per tax return ranked 45th in the nation, at $3,467.
Wisconsin Rankings
Wisconsin’s high ranking for total contribution (for a state our size), and low aver-
age contribution is a sign of Wisconsin’s unique character. The reason Wisconsin’s
average contribution rank is so low is because Wisconsin residents are itemizers—we
itemize charitable deductions more often than our neighbors in other states, likely due
to Wisconsin’s relatively high state income tax. Evidence of this can be found in the
difference between the average contribution by all individuals in Wisconsin (ranked
45th) and the average contribution by residents making over $200,000. Wisconsin’s
average contribution by those making over $200,000 a year is $25,069, and was ranked
10th highest in the nation. Wisconsin outranks nearly every other Midwest state (with
the exception of Nebraska), and even outpacing California’s average contribution of
$21,764 by those making over $200,000. Wisconsin residents do not necessarily give
less on average than other states; we are merely more likely to itemize small deductions
than residents of other states. Again, this difference may have to do with Wisconsin’s
income and property tax laws.
Similarly, Wisconsin ranks unusually high in the number of foundations per state,
especially when population is taken into account. Wisconsin ranks 9th in the country
by number of community foundations, despite the fact that Wisconsin has a much
lower population than every other state in the top 10. Wisconsin’s high number of
foundations and our charitable contributions rankings are influenced by the fact that
Wisconsin residents are exacting and precise tax filers. Many Wisconsin residents
form foundations even when their asset base is small, in order to capitalize on the tax
advantages associated with establishing private foundations.
10
Top Ten States by Average Charitable Contributions by
Residents Making Over $200,000 in 2006
Source: IRS Statistics of Income 2008
1. WYOMING $74,901
2. UTAH $40,480
3. OKLAHOMA $37,629
4. NEBRASKA $29,037
5. DISTRICT OF COLUMBIA $28,718
6. NEW YORK $27,928
7. NEVADA $26,370
8. FLORIDA $25,994
9. TENNESSEE $25,181
10. WISCONSIN $25,069

Other Grantmaking Types
G
rantmaking public charities and operating foundations are unique forms of
philanthropic giving. Some of the most visible grantmakers are grantmaking
public charities, which not only contribute funds, but build public awareness of
community issues and vital nonprofit institutions. Operating foundations contribute
only a small amount of grant dollars to outside programs, but contribute to the public
good themselves through charitable programs and research.
Grantmaking Public Charities
Grantmaking public charities are organizations that obtain their assets from various
members of the public, rather than a single source, such as a family or business.
Sometimes these organizations raise money for a particular institution – such as The
University of Wisconsin Foundation – or other times they raise funds for specific
causes, such as poverty, social justice, or a women’s fund.
Since the IRS does not have a separate classification for public foundations other than
community foundations, grantmaking public charities can be difficult to identify using
IRS definitions and resources. As a result, tracking the giving of grantmaking public
charities is very cumbersome when compared with foundation data.
On Foundation Center’s list of the 50 largest grantmaking public charities, Wisconsin
has one organization listed. The University of Wisconsin Foundation is ranked at
number 38, with total giving in 2006 of over $143 million.
Operating Foundations
Operating foundations are unique in that they conduct themselves very much like
nonprofit organizations. Operating foundations are their own type of organization
categorized by the IRS. Operating foundations have the primary purpose of conducting
research, social welfare, or charitable programs or services in the public interest
rather than making grants. These charitable programs are often partially or wholly
self-sustaining. Operating foundations sometimes make grants to other community
organizations, but these grants are usually small in comparison with the amount used
for internal charitable programs.
One of Wisconsin’s internationally known operating foundations is The Johnson
Foundation which is dedicated to convening conferences on important issues to soci-
ety at their Wingspread facility.
11
Snapshots of Philanthropy
In 2001, the public dialogue surrounding critical
issues facing Duluth, Minnesota and Superior,
Wisconsin was so contentious that citizens were
hesitant to engage in the public debate. In an effort
to improve public discourse, the Duluth Superior
Area Community Foundation launched Speak
Your Peace: The Civility Project which encourages
community members of the Duluth/Superior
area to discuss community issues respectfully
and promotes nine simple tools taken from
P.M. Forni’s book Choosing Civility. “The
nine tools of civility are about urging citizens
to communicate with each other in a more
respectful and effective way,” explains Holly
C. Sampson, president of the Duluth Superior
Area Community Foundation. “This isn’t
about censoring people’s opinions but rather
reminding ourselves of the basic principles
of respect, even when in a heated debate.”
The Community Foundation’s influence has
been integral in engaging individuals in government
forums, middle school classrooms, unions, businesses,
and church groups to participate in the Speak Your
Peace campaign. The impact extends beyond the
Duluth Superior Area Community Foundation
- multiple school districts and foundations in
Wisconsin and Minnesota, including the Community
Foundation of Greater South Wood County, are
adopting Speak Your Peace in their communities
and materials have been shared with communities
throughout the United States and in Russia and
Australia.

A community of giving
W
isconsin’s five major regions have very different grantmaking trends. For
our study, we defined Wisconsin’s regions according to the map below.
Population and wealth are not uniformly distributed around the state.
The result of this uneven distribution is that many more foundations are located in
urban areas, particularly in Milwaukee.
Foundations in the state of Wisconsin gave a total of over $497 million in 2007 Over
two-thirds of that total came from foundations located in Milwaukee County. Indeed,
Milwaukeewastheonlycountywithfoundationgrants
totaling more than $50 million in 2007. According to
the 2000 census, Milwaukee County comprises nearly
20 percent of the state’s total population.
While Southeastern Wisconsin boasts two-thirds of
the state’s foundation assets and grantmaking, it ac-
counts for just over half of the number of foundations.
The other regions of the state clearly are actively in-
volved in philanthropic giving, even if they do not
have the financial resources to give as much.
Southeastern Wisconsin
Of the more than 600 foundations in Southeastern Wisconsin, there are 37 pri-
vate foundations that contributed over $1 million in grants in 2007, as well as 19
Southeastern corporate foundations that contributed over $1 million. Southeastern
Wisconsin is also represented by several community foundations. Greater Milwaukee
Foundation, the largest community foundation in the state, granted over $28.8 million
in 2007.
Top Ten Counties by Grants Paid
Milwaukee $252,727, 819
Dane $46,694,085
Waukesha $45,796,085
Outagamie $17,760,682
Sheboygan $16,946,425
Brown $14,585,441
Racine $11,618,996
Rock $11,027,821
Marathon $8,471,240
Wood $8,451,623
Distribution of Foundations, Assets and Giving by Region, 2007
Together the southeast and southwest regions represent 78 percent of the assets and 82 percent of total giving in the state.
NUMBER OF FOUNDATIONS BY REGION
52% 12 10 6 5 3
FOUNDATION ASSETS BY REGION
66% 12 10 6 5 1
FOUNDATION GIVING BY REGION
69% 13 9 5 3 1
Southeast
Southwest
Northeast
North Central
Northwest
Other
Other denotes foundations that are located outside of the state, but give in Wisconsin.
12

A Community of giving
Southwestern Wisconsin
Thirteen percent of foundation giving comes from foundations located in
Southwestern Wisconsin. Southwestern Wisconsin is represented commu-
nity foundations in every urban area of the region, including Madison, Beloit,
LaCrosse, and Janesville. The Madison Community Foundation, the largest in
the region, granted over $3.1 million in 2007. Of the more than 200 foundations
in Southwestern Wisconsin, there are eight corporate and private foundations
that granted over $1 million in 2007.
Northeastern Wisconsin
The Appleton/Green Bay Area in Northeastern Wisconsin, the third largest
metropolitan area, accounts for 9 percent of the grantmaking in the state. A large
portion of giving in Northeastern Wisconsin comes from community foundations,
including the Community Foundation for the Fox Valley Region ($12.1 million in
grants in 2007), the Oshkosh Area Community Foundation ($3.1 million), and
the Greater Green Bay Community Foundation ($2.7 million). There are also
seven private and corporate foundations in the Northeast region which granted
over $1 million in 2007.
North Central and Northwest Wisconsin
North Central and Northwest Wisconsin together account for 8 percent of the
state’s grantmaking. These regions are represented by very strong community
foundations. In North Central Wisconsin, the Community Foundation of Greater
South Wood County granted over $3 million in 2007, and the Community
Foundation of North Central Wisconsin granted over $2 million in 2007. There
are nearly 100 foundations in North Central Wisconsin, and their combined
grantmaking totals over $22.5 million. Northwestern Wisconsin is home to more
than 50 foundations, which together granted more than $18 million in 2007.
Northwestern Wisconsin is represented by community foundations in 5 counties.
St. Croix Valley Community Foundation and Duluth Superior Area Community
Foundation are the two largest community foundations in the Northwest, con-
tributing $1.5 million and $2.1 million in 2007, respectively.
Geography and Giving
A grantmaker’s geographic location does not necessarily determine where it funds.
The majority of foundations in Southeastern Wisconsin do not fund only in
the Milwaukee area. Thirty percent of the Wisconsin 100 foundations limit their
grantmaking to local projects only, but the majority of these grantmakers are
community foundations. The vast majority of respondents contribute to projects
throughout Wisconsin, with 40 percent indicating that they fund at the national
or international level in addition to funding Wisconsin projects. Only 2 percent
of respondents indicate that they do not fund in Wisconsin at all. 13
$10 million to $50 million
Over $50 million
$1 million to $10 million
$500,000 to $1 million
$100,000 to $500,000
Under $100,000
Wisconsin Foundation Giving by County, 2007

Economic Impact
The Changing Economy
O
ne of the most pressing current issues facing
philanthropic organizations is the effect of the
economic downturn. How have assets of foundations
been affected? How will decreased assets affect future grant
payout? How are grantmakers responding? While the future
is uncertain, grantmakers’ commitment to the nonprofits they
serve is strong, and funders and nonprofits are working to-
gether to address the effects of the economic downturn. This
section examines how these changes have impacted Wisconsin
foundations’ financial strength as well as their grantmaking
activities.
Assets Decline
The 2008 decline in the stock market has affected the assets of
Wisconsin’s philanthropists, just as it has affected every sec-
tor of the economy. In 2008, nearly all (87 percent) of the
organizations in the Wisconsin 100 experienced a decrease in
assets. At the time the surveys were completed, most of these
organizations saw a decrease in assets of less than 20 percent,
while 29 percent of the respondents’ assets decreased by 20
percent or more. The surveys were collected between August
2008 and December 2008, so it is nearly certain that current
decreases in assets among these foundations are quite a bit
larger than indicated by the data.
No correlation exists between losing a large percentage
of assets and foundation type—community foundations,
corporate foundations and private foundations have all been
affected by asset losses. Similarly, no correlation was found
between the foundations with the largest assets and the largest
losses. The group that lost 20 percent or more of their assets
included foundations with assets less than $1 million to over
$100 million.
Of those reporting a decrease in assets, 75 percent attribute
the change to decreased return on investments. The other 25
percent of respondents attribute the asset decline to changes
within the organization – major gifts, increased grant payout,
corporate budgets, decrease in gifts to the foundation, spend-
ing down, etc.
The figure above represents total foundation assets by year.
Since 2000, the average annual change in assets has been a 5.7
percent increase. The projected decrease is based upon data
from the Wisconsin 100 survey results.
30%
37%
4%
8%
21% 1-10 percent decrease
> 20 percent decrease
11-20 percent decrease
no decrease
1-10 percent decrease
Change in Assets for Wisconsin 100
Source: DFW Wisconsin 100 2008
0
1
2
3
4
5
6
7
8
2003 2004 200720062005
$4.64
$5.80
2008 2009
$7.25
$6.24$5.55$5.25
$4.77
Assets of Wisconsin Foundations by Year
The bars for 2008 and 2009 represent projections based upon a
total combined asset decrease of 20 percent each year. Amounts
are shown in billions.
14

The Changing economy
H
ow will these decreased assets affect grant payout? Foundations calculate their
grant payout in many ways, taking into account the IRS’s mandatory 5 per-
cent payout, and the rolling average of assets of the foundation over the past
few years. Most foundations’ grantmaking budgets for 2009 are based not on current
assets, but on 2008 assets and earlier. Many foundations have indicated that they are
adjusting their budgets for 2009. Foundations that used to pay out more than the 5
percent minimum may pay out a smaller percentage in the coming year, to preserve
their asset bases. Other foundations may end up giving out far more than 5 percent
this year in order to fulfill past pledges, but 2010 may bring significant cutbacks to
grantmaking budgets. Most foundations have indicated that 2010’s budgets will be
quite a bit leaner than 2009.
The chart at right illustrates the grants paid by Wisconsin foundations from 2003 to
2007, with projections for 2008 and 2009. The chart illustrates a projected 10 per-
cent decrease in grants in 2008, and a further 30 percent decrease in 2009 (based on
Wisconsin 100 survey responses).
For projected budget changes in 2009, survey respondents are nearly evenly split
between projecting a stagnant grantmaking budget for 2009 (44 percent), and a some-
what decreased budget (42 percent). More than 10 percent of respondents project a
significant decrease in their grantmaking budget, and 4 percent project a moderate
increase.
There is no indication in the data that the group that lost the most in assets plans to
decrease their grantmaking by a greater margin. The proportion of those significantly
decreasing their grantmaking is the same (10 percent) among those who lost 20 percent
of their assets or more and among group as a whole.
Number and Size of Grants
Nearly all surveyed grantmakers who are predicting relatively stable grantmaking in
2009 report that they will be keeping their number of grants and average size of grants
about the same in 2009. All of the foundations that indicate they will be significantly
decreasing their budgets report that they will be making fewer grants, but they are
evenly split between making fewer grants that are also smaller, and making fewer
grants of about the same size.
Among those who indicate that 2009’s grantmaking budget will be moderately
decreased, each group has a different strategy. Some indicate that they will choose to
fund fewer programs but keep their grant sizes about the same. Others report that they
will be making the same number of grants, but they will be smaller. Many report that
they will be making fewer grants and smaller grants, and a few of the organizations
are making fewer grants that are larger in size.
0
100
200
300
400
500
2003 2004 200720062005
$318
$398
2008 2009
$497
$479$454$395
$388
Grants Paid by Wisconsin Foundations by Year
The chart illustrates a projected 10 percent decrease in grants in
2008, and a further 30 percent decrease in 2009. Amounts are
shown in millions.
15

The changing economy
Factors Affecting Grants
Certain factors seem to have an effect on projected grant payout for 2009. The largest
foundations surveyed (those with over $100 million in assets) appear to be the most
stable, with half reporting a moderate decrease in their grantmaking budget and half
reporting relatively stagnant grantmaking budgets. Foundations in the $30 to $100
million asset group have the smallest proportion reporting stable grantmaking in
2009. One reason the group may be decreasing their grantmaking is that mid-sized
foundations may have higher administrative expenses (especially for staff) than their
small-sized counterparts. They also have less of an asset cushion than their larger
counterparts to pay for staff salaries and benefits when assets decrease.
As is indicated above, staff size may have an effect on projected grantmaking budgets
for the foundations studied. The majority of respondents (69 percent) do not foresee
any change in administrative expenses next year, indicating that few organizations
are anticipating staff cuts in 2009. The remaining 31 percent are equally split between
foundations predicting they will spend more on administration next year, and founda-
tions predicting they will spend less. Two respondents report hiring freezes in 2009,
and only one foundation reports plans to hire staff this year.
Intuition tells us that those organizations that have more staff members may have
tighter budget constraints than those without staff. This situation, however, is not
always the case. With staff size, as with assets, the mid-sized foundations appear to be
affected the most. None of the foundations with more than five staff project significantly
decreased grant budgets. The foundations with a single staff person and those with
2-5 paid staff members have the largest proportions projecting a significant decrease
in their grantmaking budgets.
Increased Grantmaking
Organizations projecting moderately increased grantmaking budgets are in the 2-5
staff level group as well, but all of the organizations projecting increases qualified those
projections. One of the organizations is accelerating its spend-down efforts, and another
states that if economic conditions worsen they will be revisiting their budget plans.
The final organization projecting an increase explains that this increase is the result of
multi-year pledges, and will be followed by a decrease in grant funding in 2010.
Grants and Geography
Controlling for geographic location, survey respondents in Southeast Wisconsin are
predicting less of a decrease in grant funding. Southeastern Wisconsin is the largest
grantmaking region of the state, providing more than two-thirds of the dollars granted
by Wisconsin foundations. Only 2 percent of the foundations in the Southeast predict
that they will have significantly decreased grant budgets in 2009, compared to 11 per-
cent predicting a significant decrease across the state as a whole.
16
Funders, Nonprofits Respond
to Economic Downturn
When the economic recession hit in 2008,
the Donors Forum of Wisconsin convened
its membership to discuss how grantmakers
were being affected by the economic crisis and
the broader implications for the social sector.
Based on the outcome of these meetings, DFW
designed and facilitated a series of listening
sessions in March 2009 for funders and service
providers to share strategies and concerns
regarding how to ensure that resources and
services are available to meet community needs.
The listening sessions provided an opportunity
for grantmakers to hear directly from nonprofits
on how the economy is affecting their services,
and to assess the impact on the financial crisis
on local organizations. Direct communication
between funders and nonprofits is helping
grantmakers to respond strategically in order to
most effectively assist their grantees.
In all, over 115 organizations participated in
these conversations. The themes emerging from
these discussions provide perspective on how
foundations and nonprofits are responding to
the current economic downturn.

the changing economy
How will these decreased grantmaking budgets affect the nonprofit organizations
that philanthropists serve? The National Center for Charitable Statistics reports that
approximately 23 percent of nonprofit organizations revenue comes from private
contributions each year , and that the largest proportion of nonprofit revenue comes
from fees for services and goods. The proportion changes drastically depending on
the type of nonprofit organization, however. For example, arts and culture organiza-
tions receive an average of 41 percent of their revenue from private contributions,
and environmental organizations receive nearly half of their revenue from private
contributions.
Approximately half of the surveyed foundations in the Wisconsin 100 report that
grant requests remained approximately the same in 2008, while 40 percent report
that the volume of requests increased in 2008. Forty-one percent of respondents
state that they received more requests for general operating support in 2008, and 30
percent report that they received more requests for emergency support (i.e. cover-
ing budget shortfalls). Combining these factors with the significant proportion of
organizations decreasing their grantmaking, it is anticipated that the competition
for grant funding will increase dramatically in the coming year, and that the entire
nonprofit sector can expect their contributions from foundations to decrease fairly
significantly in 2009 and 2010.
0%
10%
20%
30%
40%
50%
M
oreGen.Operating
41%
LargerRequests
33% 31% 30%
26%
4%
M
oreStartUps
M
oreEmergency
NoChanges
M
ore/New
Unfamiliar
Proportion of Wisconsin 100 Reporting Changes in
Grant Requests
17
Key Themes from
Discussions on the Economy
Grantmakers are
…Adjusting grantmaking strategies
in response to steep decline in assets
…Continuing commitment to grantmaking
priorities while being responsive to critical
community and basic needs
…Promoting collaboration
by encouraging and facilitating nonprofit
alliances and mergers to increase efficiencies
in addition to working collaboratively with
other funders
…Communicating
with existing grantees to exchange
information and stay updated on how best
to support them
…Supporting nonprofit performance through
flexible dollars and non-financial resources
Nonprofits are
…Managing rising demand
for services amid diminishing resources
…Focusing on core mission
and maintaining quality of service
…Building partnerships
for cost savings and enhanced impact
…Strengthening relationships
by involving board members, donors
and staff in scenario planning and
strategic decision making
…Thinking outside the box
to problem solve and creatively
address financial challenges

Types of Support
Where The Dollars Go
F
oundations are able to focus their
giving in a number of ways that
reflect both the needs of nonprof-
its and the interests of the foundation
itself. Grantmaking can be designated
for a particular type of support includ-
ing program, general operating, capital
support, scholarships, challenge/match-
ing grants, and technical assistance.
Foundations may also choose to direct
their grantmaking by defining specific
program areas they support, such as so-
cial services or arts and culture.
Program General Operating Support
Program support is the most popular
type of grantmaking by the surveyed
organizations; 91 percent of the survey
respondents provided grant support for
nonprofit programs. General operat-
ing support for nonprofit organizations
is the second most common type, with
72 percent indicating they provide this
type of grant. Grantmakers for Effective
Organizations defines general operating
support as grants in support of a nonprofit
organization’s mission rather than specific
projects or programs.
More and more, Wisconsin grantmakers
are seeing the benefits of providing
general operating support in addition
to grants that are restricted to particular
projects. Many funders tend to shy
away from this type of funding, as it is
difficult to track results when funding
is not tied to particular programs, and
sometimes donors feel less satisfaction
when their grant dollars are being
used for items like rent, salaries
and utility bills. However, general
operating support is widely viewed as
beneficial, in that it can be stabilizing
to organizations and can increase the
capacity of nonprofits, making an
impact on each and every program the
organization administers.
Other Types of Support
Less than one-half of foundations
surveyed provide capital support, multi-
year, scholarships, challenge/matching
grants, technical assistance, or program
related investments. The smallest foun-
dations (by assets) are the least likely to
provide these less traditional types of
support, which indicates that the vast
majority of the foundations in Wisconsin
exclusively provide general operating
and program support. Nearly half of the
organizations surveyed fund research,
planning or evaluation grants at least
sometimes, but very few respondents
fund these types of grants regularly.
The least common type of grantmaking
is the program related investment (PRI).
PRIs are low-interest or no-interest loans
to nonprofit or for-profit organizations
which advance the mission of the founda-
tion. Only 6 percent of the foundations
surveyed provide PRIs. This reluctance
to provide PRIs is likely due in part to the
extensive legal reporting requirements
for these types of loans compared with
grants. Additionally, many foundations
prefer to use their principle to achieve
the highest rate of return so that there is
more money available for grantmaking.
PRIs do not achieve a high rate of return
by their very definition, however, these
types of investments allow foundations to
maximize their potential positive impact
by using their assets to help advance their
missions.18
Snapshots of Philanthropy
A pair of family-owned companies in
Northeast Wisconsin formed a giving
partnership to help people struggling to
secure basic life needs such as food, housing
and health care. The Basic Needs Giving
Partnership, a joint initiative of the U.S. Oil
Open Fund for Basic Needs and the J. J. Keller
Foundation Inc, provides support to prevent
people in episodic crisis from becoming people
in chronic need. The partnership evolved out
of the U.S. Oil Open, an annual golf outing
which started in 1986. U.S. Oil Co., Inc. fully
funds the event expenses, ensuring that every
dollar contributed by sponsors and golfers goes
directly into endowed funds within the Fox
Valley, Oshkosh, and Green Bay community
foundations. Each community foundation
supports initiatives that take a long-term view
in helping people prevent and move out of
poverty and encourage collaborative solutions
supported jointly by the non-profit, public and
private sectors. J. J. Keller Foundation matches
the grant-making budget in each of these
funds, doubling the grant dollars available
for basic needs programs. “When you have
collaboration between organizations that
are trying to accomplish the same goal, you
can make it twice as effective with twice the
funding,” notes Mary Harp-Jirschele, executive
director of the J. J. Keller Foundation. In
2008 the golf outing was supported by nearly
600 businesses, foundations and individuals
raising over $1.2 million.
“Our focus is on
collaboration among
funders and nonprofits to
make a measurable impact
on the community we care
about,”
— Sarah Schmidt,
Schmidt Family/U.S. Oil Co. Inc.

Program Areas
Where the dollars go
E
ducation, social services, art and health represent the top four funding priori-
ties for U.S. foundations. Wisconsin foundations’ major focuses are similar to
these national priorities. In 2007, arts and culture was the top program area in
Wisconsin, due to a major gift to the Discovery World Museum. 2006 represents a
more typical year for Wisconsin with education as the largest program area, followed
by social human services, and then arts and culture.
The majority of foundations surveyed use their grantmaking capacity to fund five or
more distinct programs areas. Community foundations tend to fund the most program
areas, with more than 80 percent funding five or more. Private foundations are the
most likely to conduct very focused grantmaking, with the largest proportion funding
only one, two, or three types of programs.
The number of program areas a foundation funds varies according to its asset level. All
of the survey respondents with assets over $100 million fund five or more program
areas. The proportion of foundations with under $5 million in assets funding five or
more areas is closer to 50 percent. Foundations with a larger asset base are in a better
position to diversify their giving, while smaller foundations tend to be more impactful
in their grantmaking when they are more focused.
Education is the most common focus area for Wisconsin foundations. More than three-
fourths of respondents cite education as a program focus area, and this proportion is
consistent among private, community, and corporate foundations, as well as for each
asset level, from less than $1 million to over $100 million. An in-depth exploration of
education funding is included on page 21.
Social and human services and health also represent very common funding areas
for Wisconsin foundations. The program areas that are least commonly supported
by the survey respondents are economic development, religion, sports recreation,
and disaster relief, which are each funded by about a quarter of the respondents, and
international grantmaking, which is funded by only 9 percent of respondents.
Disaster relief, funded by only 26 percent of foundations overall, is heavily funded
by corporate foundations, with 75 percent making these types of grants. Community
foundations are the most likely to support less common program areas such as sports
and recreation and environment.
19
Foundation Areas of Giving in Wisconsin and the United States
The education area continues to receive the most support from Wisconsin and the U.S.
Wisconsin giving is very comparable to the U.S. foundation trends.
Source: FoundationSearch.com 2009
Economic Development
Arts Culture
Education
Environment
Health
Religion
International
Social Human Services
Sports Recreation
32%
35%
9%
13%
15%
6%
8%
12%
.5%
4%
20%
14%
11%
.5%
10%
.5% 6%
3%
Wisconsin, 2006 National, 2007

Focus on Health
where the dollars go
A
bout one out of every four foundation grant dollars in the US goes toward health,
according to Giving USA. In Wisconsin, about 62 percent of surveyed founda-
tions fund health at some level. The health area is most heavily supported by
private and community foundations, with 60 percent and 77 percent making grants in
health respectively. Corporate foundations and giving programs support health slightly
less often, with 42 percent making grants in the health area. In each asset group, from
less than $1 million to more than $100 million, at least half of the surveyed grantmakers
report making grants in the health funding area.
Within health, the largest area generating support from the survey respondents is chil-
dren- and youth-related health grantmaking, with 36 percent of respondents supporting
this area at some level. Other common areas are medical research, mental health, and
substance abuse. The areas with the least investment include health policy, health work-
force, quality of care, and oral health. Though several of the least popular areas are
poverty-related, the most common primary focus area among the survey respondents
is access to health care. Nearly one in four grantmakers in Wisconsin make grants
toward access to health care, and it is the primary focus area of nearly 20 percent of
respondents.
Most funders supporting health make grants toward programs and projects, with many
also providing general operating support for health-related organizations. Non-traditional
funding to health organizations, including PRIs, technical assistance, and health scholar-
ships, are not widely supported through grants by foundations in Wisconsin.
20
19%
15%
11%
11%
9%
8%
4%
4%
4%
7%
2%
2%2%
2%
Children Youth 15%
Access to Care 19%
Disease Related 11%
Quality of Care 2%
Medical Research 11%
Public Health 9%
Mental Health 7%
Aging 8%
Health Promotion 4%
Substance Abuse 4%
Reproductive Health 4%
Health Literacy 2%
Medical Eduation 2%
Racial/Ethnic Disparities 2%
Wisconsin 100 Primary Focus Areas within Health

Focus on EducationSnapshots of Philanthropy
In 1959, Robert and Patricia Kern founded Generac
Power Systems, one of the world’s largest independent
manufacturers of complete engine-driven generator
systems. After selling the business,
they established the Kern Family
Foundation to invest in the future
through values, education and
innovation. One of the Kern Family
Foundation’s signature programs
has become support for Project
Lead the Way (PLTW), a highly
regarded academically-rich, project-
based introduction to the skills needed for careers in
engineering and technology. Project Lead the Way is
truly a statewide initiative in Wisconsin, involving
government agencies in education, workforce
development and commerce, two- and four-year
college and university systems, the business sector, the
philanthropic sector and middle and high schools.
In Wisconsin, the Kern Foundation’s investment of
more than $4 million has been supplemented with
over $3.2 million in public and private funding,
expanding the PLTW program to schools throughout
the state. The Greater Milwaukee Foundation,
Harley-Davidson Foundation, and Rockwell
Automation are among Project Lead the Way’s
private funding investment partners. The success of
this public-private partnership was recognized in
2007 by the Public Policy Forum. Milwaukee Public
Schools, a partnering district, was the recipient of the
“private-public cooperation” innovation award for
the district’s adoption of PLTW.
where the dollars go
W
ithin education, Wisconsin’s grantmakers focus on a variety of projects.
As a group, they do not favor one level of education over the others; early
childhood, primary, secondary, and higher education are all equally cited
as grantmakers’ primary focus area.
Scholarship funding is a major education giving area, with 56 percent of education
grantmakers funding scholarships and 16 percent reporting that scholarships are their
primary giving area within education. In addition to those citing scholarships as their
primary education focus, there are a significant number of foundations in Wisconsin
that only fund scholarships. There are over 150 scholarship foundations in Wisconsin,
and together these foundations provided more than $7 million in scholarship dollars
in 2007.
K-12 education is a frequently supported area of education. Over two-thirds of the
foundations studied supported K-12 education, with primary or secondary education
as the central focus area of more than a quarter of the respondents. Higher education
is also a common focus, with 43 percent of respondents making grants toward higher
education and 16 percent reporting higher education as their primary focus. Although
only 10 percent of respondents report that early childhood is their primary focus area,
over half of all the grantmakers surveyed indicate that they make grants in early child-
hood education at some level.
10%
14%
16%
16%
14%
14%
14%
Higher 16%
Early Childhood 10%
Primary 14%
Secondary 14%
Scholarships 16%
No Primary Focus 14%
Other Focus Area 14%
WI 100 Primary Focus Areas within Education
Source: DFW Wisconsin 100 2008 21
“To keep our economy
globally competitive and
maintain our standard
of living, it is critical to
have our students consider
engineering and technical
fields as career choices,”
— Robert Kern,
Kern Family Foundation benefactor.

Insider’s Guide to Foundations
F
oundations vary widely in their organizational structure, staff size, investment
practices, administrative expenses, and overall grantmaking process. Many
larger foundations are highly visible in their respective communities while many
smaller foundations have a limited public presence. The limited visibility of many
funders can cause confusion about reality of foundations’ day-to-day operations.
In order to provide an “insider’s” look at these issues, this section examines the
organizational structure of Wisconsin foundations.
Administrative Expenses
Foundations’ administrative expenses have been a source of scrutiny in recent years.
Administrative expenses are considered to be charitable-use dollars that the founda-
tion uses to help them achieve their mission. These expenses cover meetings with
grantees, gatherings with community leaders, board meetings to approve grants, and
other expenses necessary to thoughtfully, strategically, and successfully make grants
to the communities which foundations serve.
The vast majority of Wisconsin 100 foundations (68 percent) predict no change in
their administrative expenses for 2009. Changes in administrative expenses often
reflect changes in the staffing levels or work of the foundation. A new initiative may
cause an increase in administrative expenses, for example making a program-related
investment for the first time will cause higher legal and or accounting fees to make
the loan. The addition or subtraction of a staff member, or a change in employee
benefits will cause a change in administrative expenses as well. The stagnant level of
administrative expenses likely reflects the standard operations of most foundations
continued year after year.
The foundations who are predicting changes in their administrative expenses, the
vast majority are community foundations. Only 16 percent of private foundations and
9 percent of corporate foundations predict a change in administrative expenses in
2009, as opposed to 75 percent of community foundations. Community foundations
are about equally divided between increasing and decreasing their administrative
expenses next year, with 35 percent increasing and 40 percent decreasing.
Community foundations’ administrative expenses may be more volatile due to the
unique roles they play in their communities. For example, many community foun-
dations are involved in community research and convening activities that are less
common among private and corporate foundations. Additionally, operating expenses
can be more difficult to obtain for community foundations, with budgets that are
largely determined by their donors, and that may not have adequate access to unre-
stricted funds that can be used for operations.
Paid Staff
One of the largest components of administrative expenses is staff salaries and benefits.
Of the organizations surveyed, the majority (65 percent) have at least one staff person.
This level of staffing is consistent with Donors Forum of Wisconsin members, but is
not representative of the majority of foundations in the state.
68%
8%
16%
no change
decrease
increase
Wisconsin 100 Expected Change in
Administrative Expenses
22

insider’s guide to foundations
Private foundations make up 86 percent of the foundations in the state, over half of
which have less than $1 million in assets and tend not to have paid staff. Fifty percent
of the private foundations with assets over $1 million in the Wisconsin 100 survey also
have no staff. Extrapolating from this data, it is estimated that more than two-thirds
of the state’s foundations do not have any paid staff.
Foundations with no paid staff operate in a number of ways. Many are led by family
members, others are volunteer-led, and some are led by bankers and lawyers, who may
not be listed as staff but instead are listed as trustees, officers, directors, consultants, or
listed under legal fees. Mostly, foundations with no staff are administrated by volunteer
family members.
The type of foundation dramatically affects staffing levels. Ninety-five percent of the
community foundations in Wisconsin have at least one paid staff member. Half of
private foundations surveyed have no paid staff at all, and all of the surveyed private
foundations with less than $1 million in assets have no staff. Twenty-five percent of
corporate foundations have no paid staff, but even these organizations have staff paid
by their parent companies—the funds simply come out of the corporation rather than
the foundation budget. Corporate foundations maintain the largest staffs overall; half
of corporate foundations and giving programs surveyed are staffed by 2-5 employees.
In addition to paid staff, some foundations choose to compensate their trustees. Of
the 20 percent of respondents that compensate trustees, nearly half have no paid staff,
indicating that the trustees are probably performing many of the functions of paid
staff at other organizations. Another 25 percent are foundations with five or more staff
persons and over $100 million in assets, which suggests that these trustees are required
to oversee and approve a very large number of grants each year.
Office Space
Another portion of administrative expenses for foundations is office space. The majority
(75 percent) of the respondents have a private office for their foundation, which again
is representative for Donors Forum members, but not necessarily representative for
foundations across the state. The surveyed organizations housed in bank trusts and law
firms are nearly all private foundations. Sixteen percent of the surveyed private founda-
tions are housed in bank trusts or law firms, and 23 percent of private foundations had
no office at all. Extrapolating from this data, the majority of Wisconsin foundations
are housed in bank trusts or law firms, or has no office at all.
23
19%
16%
28%
44%
40%
3% 4%
20%
100%50%
60%
70%
80%
90%
100%
5+ Staff
50%
36%
13%
19%
16%
27%
28%
44%
40%
3% 4%
20%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$1 to $5 $5 to $30 $30 to $100 Over $100
Assets in Millions
5+ Staff
2-5 Staff
Single Staff
No Staff
Number of Paid Staff by Asset Level, 2008
Assets in millions

Managing Mission
Insider’s guide to foundations
Unsolicited Proposals
Most of the foundations surveyed were open to accepting unsolicited proposals (65
percent). Most community foundations accept them, with only 19 percent indicating
that they do not accept unsolicited proposals. The proportion of organizations that
will not accept unsolicited proposals is a little bit higher for private foundations, at 43
percent.
It seems likely that foundations with no staff or foundations with less than $5 million
in assets would be less apt to accept unsolicited proposals, since they would likely lack
the staff capacity to evaluate them, and would lack the financial capacity to fund them.
However, small and non-staffed organizations are actually nearly as likely to accept
unsolicited proposals. Seventy-two percent of organizations surveyed with under $5
million in assets still accepted unsolicited proposals. Additionally, nearly half of the
foundations without offices accept unsolicited proposals, and more than half of those
with no staff accept unsolicited proposals.
Why would foundations with such limited capacity be so open to receiving proposals
from any nonprofit that wanted to apply? The answer is simple. Foundations that give
out the most in grants are well-known—they are often well-publicized companies
and large foundations with a significant presence in the media. These groups receive
a tremendous amount of unsolicited proposals each year. Organizations that are eas-
ily accessible (i.e. those with a web presence), receive a huge volume of unsolicited
proposals as well. On the other hand, small foundations run out of the houses of
families tend to be much less well-known, and therefore receive fewer proposals in
general, and particularly fewer unsolicited proposals.
Mission-related Investing
Mission-related investing is the practice of investing assets to achieve both social and fi-
nancial returns. Also called social investing, or sometimes socially-responsible investing,
this practice can include many different types of investment strategies, from investing
in socially-responsible companies, to social venture capital, community investing, or
even simply screening investment portfolios with an eye toward mission.
Only 13 percent of surveyed foundations participate in any sort of mission-related
investing. Among organizations in Wisconsin there seems to be very little interest in
delving into the mission-related work that foundation endowments can do. Only 6
percent of those in Wisconsin screen their investment portfolios with an eye toward
mission, and only 7 percent participate in community investment or program related
investments. None of the surveyed organizations participated in any social venture
capital.
24
0%
2%
4%
6%
8%
10%
12%
14%
All
13%
CommunityInvestment
7% 7% 6%
4%
4%
SocialVentureCapital
ScreenPortfolios
PRIs
ShareholderAdvocacy
0%
Wisconsin 100 Participating in Mission-Related Investing

Managing MissionSnapshots of Philanthropy
The nonprofit sector is facing what experts call an
unprecedented workforce crisis with organizations
in Wisconsin and across the country struggling to
recruit and retain talented staff. To
cultivate new sources of talent and
leadership, since 2003 the Theodore
W. Batterman Family Foundation has
been providing scholarship dollars for
college students to complete summer
internships at nonprofit organizations
in Rock and Jefferson counties. “The
Batterman Foundation’s success paved
the way for the participation of nonprofits and other
funders including Siebert Lutheran Foundation,
Northwestern Mutual Foundation, and George
Julie Mosher,” said David C. Wolfson of Wisconsin
Foundation for Independent Colleges which manages
the College-to-Work Nonprofit Internship Program.
Philanthropic dollars directed towards the program
benefit a variety of groups: students through hands-
on experience at community based organizations;
nonprofits gain from the work of capable interns;
and, the quality of private college education is
enriched. These interns could become the future
leaders of Wisconsin’s nonprofit arena, reducing
the sector’s projected workforce shortfall and
strengthening communities through their leadership.
Insider’s guide to foundations
Why are so few Wisconsin foundations applying their endowment assets toward their
mission? There are several reasons. Firstly, it is untraditional. Mission-related investing
is still a new concept to most grantmakers. Additionally, program related investments
and other forms of mission-related investing require a great deal of time, energy, and
sometimes legal scrutiny, which can be both costly and difficult. Many foundations
feel as one Wisconsin 100 respondent does, who comments that “the aim is to maxi-
mize the amount to be given.” Several other foundations indicate that they have been
considering or discussing mission-related investing, but that they have not yet taken
any action. This trend is only slightly different across the country—very few founda-
tions and other philanthropic organizations participate in mission-related investing,
though the trend is growing.
New Initiatives
Only 1 percent of foundations surveyed are considering hiring staff in 2009. Nearly
half of the surveyed organizations indicated they would take on some new initiative
in 2009. Nineteen percent of organizations are conducting strategic planning in 2009,
and 28 percent plan to evaluate foundation effectiveness. Seventeen percent will be
starting a new initiative. Fund drives are not common this year, with only 7 percent
overall indicating they are considering a major fund drive, which includes less than
one-fifth of community foundations in the state.
Only a few foundations indicated they would be changing their program focus, and
most of those were corporate foundations and giving programs. Overall, one-third of
corporate foundations and giving programs surveyed planned to change their program
focus in 2009, while only 2 percent of private foundations and 9 percent of community
foundations indicated they may make a change. According to Wisconsin 100 survey
comments, it is likely that those changing focus will begin to focus more on basic needs
in 2009 than they did in 2008.
25
“To ensure that the agencies
have the capacity to
provide a meaningful
experience for the student,
we target nonprofits
that are grantees of the
Foundation,”
— Carmen Witt,
Former Batterman Family
Foundation Executive Director

Challenges Facing the Philanthropic Sector
Inside the organization
When asked to identify the biggest issue facing the philanthropic sector, nearly all
of the surveyed foundations cite the current economic crisis. “There are so many
worthy causes and not enough money to go around,” one grantmaker states. “There
needs to be more cooperation among agencies to work together to make the dollars
stretch more.”
The most often cited frustration among the surveyed grantmakers is simply not hav-
ing enough money to accomplish their goals. “Grant requests are always greater than
available resources,” one respondent observes. Another explains that she is frustrated
by “so many worthy causes, and not enough money for everyone.”
While not having enough funds available to make grants to all the worthwhile non-
profit organizations is the most common frustration cited by respondents, seeing
funds misspent is a close second. Respondents are frustrated when they see inefficien-
cies, duplication of services, and unsuccessful projects. Two respondents remark that
they are frustrated by “repeated investments that don’t seem to advance the work of
the entity,” and “grantees’ failure to use funds as intended.”
Grantmakers acknowledge, however, that their own limitations can create obstacles
for the nonprofits they fund. One grantmaker explains that it is hard to find “good
evaluation tools without drowning the applicants in paperwork.” The biggest issue
facing another grantmaker is the need to acknowledge “that organizations we sup-
port may experience being dropped by other funders, putting additional pressure
on our level of funding.”
“Private philanthropy, while growing, is facing the realities of picking up where
government is vacating,” one respondent says. “That being the case, it is hard work
to make significant quality of life improvement.”
“There are so many worthy
causes and not enough money
to go around — there needs
to be more cooperation among
agencies to work together to
make the dollars stretch more
-Wisconsin 100 Respondent
”
26

Philanthropic SuccessesAddressing the Impact of
the Economic Crisis
Amid the current economic uncertainty, Wisconsin’s
philanthropic and nonprofit communities are
working together to navigate new territory and
prepare for the future by:
Reaching out
Fostering open and honest dialogue on the realities of
the economic downturn in order to stay informed of
key developments and respond strategically.
Scenario planning
Involving nonprofit staff, the
board and major donors in the
forecasting and planning process
to sustain and prioritize mission-
critical programs and activities.
Calling upon leadership
Executive directors are looking to
their boards to provide leadership and asking them
to help in a variety of ways to sustain and strengthen
the organization.
Increasing innovations and efficiencies
Seizing opportunities to adapt to the changing times
and explore new means to reduce operating expenses
and more effectively serve clients and the community.
Advocating for the social sector
Funders, nonprofit executives and board members
are speaking up to educate stakeholders, including
policymakers and local media, about the importance
and contributions of the charitable sector to the
state’s local economies and quality of life.
insider’s guide to foundations
When asked to identify their greatest philanthropic successes, funders identify a myriad
of improvements that have resulted from their work in philanthropy. Grantmakers were
proud of large capital grants which have had a tremendous impact, as well as small
seed grants for pilot programs that ended up making a being impactful. “Big bang for
small bucks!” remarked a proud grantmaker.
Many grantmakers were most proud of the relationships they have built with their
grantees—helping them to submit stellar grant proposals, helping grantees to
collaborate, making grants to improve grantees’ programs, and serving as an incuba-
tor of grassroots groups yet to establish a track record.
Funders were also proud of their relationships with other grantmakers—from
community foundations happy with their success through their Donor Advised Funds,
to supporting their philanthropic colleagues within their giving areas. One family
foundation trustee was proud of the success he had in “successfully passing on the
practice of philanthropy to future generations of the family.”
“We are successfully
passing on the practice
of philanthropy to future
generations of the family
-Family Foundation Trustee”
27

About the Report
References and Resources
About the Wisconsin 100
The Wisconsin 100 survey was designed to provide a
snapshot of the giving trends through surveying a pur-
poseful sample of Wisconsin foundations. The Donors
Forum chose to study foundations only since unlike
individuals or corporate giving programs, foundations
are required to submit the IRS Form 990-PF each year,
and their giving trends can be studied on a large scale
(total assets, total giving, etc.). However, if one would
like to know more detailed information, or anything that
may not concern the IRS but would concern grantees or
other grantmakers, the Form 990-PF is inadequate. The
Wisconsin 100 survey was designed to create a dynamic
knowledge base of current and detailed information on
Wisconsin foundations.
Foundations in Wisconsin range in assets from under
$1 million to over $100 million. The majority of foun-
dations in Wisconsin are very small—57 percent have
under $1 million in assets. For the Wisconsin 100 survey,
the Donors Forum chose to primarily study founda-
tions with assets of over $1 million, in order to examine
the trends affecting the largest foundations in the state,
and to gather information from a greater proportion of
Wisconsin’s assets with a limited sample size. In total,
survey respondents account for nearly 45 percent of the
total assets of foundations in the state.
The Wisconsin 100 survey was based upon a survey
conducted annually by the Ohio Grantmakers Forum.
DFW’s survey was distributed to approximately 300
foundations, with 107 responding. Controlling for asset
size, random selection was employed to select approxi-
mately two-thirds of the foundations that received the
survey. The remaining third were made up of Donors
Forum members. The respondents skewed heavily to-
ward DFW members, with 25 percent of the respondents
being nonmembers . As the sample was not completely
randomized, we are reluctant to extrapolate our findings
to be representative of all foundations in the state.
Since the survey was not distributed to a large propor-
tion of foundations with assets under $1 million, the
survey data is not representative of this group of founda-
tions. Efforts have been made throughout the report to
indicate where this representation of very small founda-
tions is lacking.
About the Donors Forum of Wisconsin
TheDonorsForumofWisconsin(DFW)isaprofessional
membership association of foundations, corporate giv-
ing programs, and other grantmaking organizations. Its
mission is to support and promote effective philanthro-
py. DFW represents over 130 members organizations
who contribute over $185 million, which accounts for
over 47 percent of all grants distributed in Wisconsin.
They also represent over $2 billion in assets, which ac-
counts for over 45 percent of all foundations assets in
the state.
For over 30 years DFW has been Wisconsin’s resource
for philanthropy and is focused on four key areas:
community leadership, networking, knowledge and
professional development.
DFW is one of over 30 staffed regional associations of
grantmakers operating in cities, states and multi-state
regions across the U.S. It is a member of the Forum
of Regional Associations of Grantmakers, the national
organization that connects the regional associations and
promotes philanthropy.
About the Funding Information Center
Marquette University’s Funding Information Center is
one of over 300 national cooperating collections of the
Foundation Center in New York City. The Center has
participated as a cooperating collection since 1973.
Since its establishment in 1956, the Foundation Center
has been the primary source of factual information on
private foundations and philanthropy in the United
States. The Foundation Center, along with its coop-
erating collections, is designed to provide current
information for the fund-seeking public and those doing
research on private foundations, philanthropy, nonprofit
organization and management, volunteerism, fundrais-
ing, grantmaking, and letter and proposal writing.
DFW Board of Directors
Eileen Connolly-Keesler,• Oshkosh Area
Community Foundation
Curt Detjen,• Community Foundation
for the Fox Valley Region, Inc.
Scott Gelzer,• The Faye McBeath Foundation
Cecelia Gore,• Jane Bradley Pettit Foundation
Lynn Heimbruch,• Northwestern Mutual
Foundation
Ed Hinshaw,• Richard Ethel Herzfeld
Foundation
Jody Lueck,• Mercy Works Foundation
Jim Marks,• Greater Milwaukee Foundation
Mary Anne Martiny,• Harley-Davidson
Foundation
Robin Mayrl,• Helen Bader Foundation
Sally Merrell,• von Briesen Roper, s.c.
Anne Summers,• Brico Fund, LLC
Casandra Tate Mahoney,• Tate Family
Foundation
Karen Wilken,• Kern Family Foundation
DFW Staff
Deborah Fugenschuh,• President
Samantha Dennis,• Director of Communications
and Member Relations
Rosemary Lillich,• Director of Programming
and Special Initiatives
Emmy Hall,• Manager of Research and
Administration
Connie Van Wagenen,• Accountant
Molly Szymanski,• Research Intern
28

For additional copies of this report, please contact DFW.
Donors Forum of Wisconsin
759 N. Milwaukee Street, Suite 515
Milwaukee, Wisconsin 53202
P. 414-270-1978 F. 414-270-1979
dfwonline.org
This report was graciously underwritten by

Wisconsin Stateof Philanthropy Report 2009 by DFW

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