Richard
C.
Sansing
Dartmouth College
Robert
J.
Yetman
The University of Iowa
Abstract: Private foundations must spend at least five percent of their assets each year on charitable purposes. This paper examines actual tax return data from a sample of private foundations between 1994 and 1998. It examines the amount and timeliness of their charitable expenditures. It also examines the level of charitable administrative expenses per dollar of grants. It finds that the amounts currently transferred to charitable beneficiaries is negatively correlated with the fraction of operating expenses paid to foundation officers, directors, and trustees, and is positively associated with the fraction of current revenues from new contributions.
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