Report // An Evaluation of Private Foundation Model Portfolios, Investment Returns, & Payout Rates

As a leadership organization that puts equity at the center and is committed to creating space for reflective conversation, the Council of Michigan Foundations (CMF) continues to ask: Have the market forces and growth in philanthropy — and growth in Michigan philanthropy, specifically — changed enough to warrant an increase in the 5% rule for private foundations?

In 2020, CMF partnered with the Johnson Center and Plante Moran Financial Advisors to deepen and expand past research exploring the 5% payout rate to help answer this question, building on the learnings of previous studies they’ve commissioned over the past 20 years.

An Evaluation of Private Foundation Model Portfolios, Investment Returns, & Payout Rates captures what CMF believes is the most comprehensive snapshot of payout data available to foundations to date. This research provides a valuable tool to private foundations in Michigan and across the sector.

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• View the Infographic
• View the Technical Appendix