Following the release of the Study in August, Commonfund did a deep dive into results from the 39 participating private family foundations. The summary below offers a comparative analysis of these institutions and the 154 private foundation respondents from the full CCSF report. Note: Additional analysis of private and community foundation data aggregated by endowment size and region can be found in the full report.
Private family foundations accounted for $18.4 billion of the $104.9 billion in assets represented by total foundations and reported a median endowment size of $141.5 million compared with $197.5 million for total private foundations.
Performance
Returns for all time horizons reported in the Study were positive across both groups for all institution sizes. The 39 private family foundations participating in this year’s Study reported a 10.0 percent average 1-yr. return vs. 10.3 percent for total private foundations. Three-, five- and 10-year average returns for family foundations were 3.2, 7.7 and 7.8 percent, respectively, vs. 3.1, 7.8 and 7.3 percent for total NCSE respondents over the same time periods. This year, the Study collected 15- and 20- year annualized return data for the first time. Family foundations reported 7.8 percent 15-year returns compared with 7.5 percent for private foundations, and 6.9 percent 20-year returns compared to 6.4 for private foundations, on average.
Asset Allocation
In 2024, the 39 private family foundations reported an overweight to alternative strategies compared with total private foundations (52 percent vs. 45 percent), and an underweight to U.S. equities (19 percent vs. 26 percent). Within alternatives strategies, family foundations had the highest allocation to marketable alternatives (17 percent), followed by private equity and venture capital (7 percent for each strategy). (Marketable alternatives includes hedge funds, absolute return, market neutral, long/short, 130/30, event-driven, and derivatives.)
Spending
Family foundations reported an average stated policy spend rate of 5.3 percent, similar to the 5.2 percent reported by total private foundations, on average. Looking at spending policy, the most frequently reported spending methodology used by family foundations and total private foundations was meeting the IRS minimum of 5 percent (72 percent and 62 percent of these groups did, respectively). The next most frequently used spending methodology followed by 31 percent of responding family foundations was to decide on an appropriate rate each year. (Note: multiple responses were allowed.)
Responsible Investing Practices
The adoption of various responsible investment practices has grown in recent years. In 2024, 38 percent of family foundations reported that they require or permit investments ranking high on ESG criteria and those that further the institution’s mission, or impact investing. This rate surpasses that of total private foundations, 26 percent of which require or permit ESG and impact investing. Further, 31 percent of family foundations implement negative screening and 18 percent seek to include investments with diverse managers.
We hope these top-line insights will serve as a guidepost for your own analysis into these important topics and we encourage you to read the Study in its entirety to best evaluate your performance compared with your benchmark or peers.