U.S. foundations are an important source of funding for public needs, providing more than $45 billion in grants in 2010. On average, grants to rural-based organizations accounted for 5.5 percent of the real value of domestic grants by large foundations during 2005-10. However, a share of foundation grants to urban-based organizations may also have benefited rural people, if the grant recipient works in rural areas or serves broader public purposes that benefit both rural and urban people.
To better estimate the share of the total value of grants that primarily benefited rural residents, ERS researchers selected a random sample of 200 large foundation grants in 2010. Using publicly available information on these grants and their recipients and excluding grants that served both urban and rural people, the estimated share of the value of grants designed to produce rural benefits was slightly higher, at 6.3 percent. Considering that the rural share of the U.S. population was 19 percent in 2010, both measures suggest foundation grants have an urban focus.
Understanding the distribution of foundation grants to and across rural areas can help improve the effectiveness of public programs targeted to these areas, since foundation grants may complement or substitute for public investments.
Source:usda.gov