Study Identifies Patterns in Rural Grants

A study from the U.S. Department of Agriculture Economic Research Service suggests that grants to rural-based organizations are on the decline.  The report, Foundation Grants to Rural Areas from 2005 to 2010: Trends and Patterns by John Pender, examined data on grants from the Foundation Center (of at least $10,000 awarded by the largest private and community U.S. foundations between 2005-2010), the National Center for Charitable Statistics, the Census Bureau, and USDA’s Economic Research Service to identify patterns grant distribution to rural communities in the United States.

Although 19 percent of the country’s population is located in rural areas, Pender concludes that grant funding “to rural-based organizations accounted for 5.5 percent of the real value of domestic grants by large foundations during 2005 to 2010, with a slight downward trend (based on Foundation Center data on grants by the largest 1,200 to 1,400 foundations).”  A random sample of large foundations found that 6.3 percent of the total value of grants awarded in 2010 went to organizations in rural areas. Analysis using a sample of small foundations found the rural share of total grant value went from 7.5 percent in 2005 to 7 percent in 2010. During this time period the majority of grants to rural communities came from independent foundations.

Other findings from the study:

  • The average dollar value per person of grants from large foundations to rural organizations was $88, versus $192 per person in metro counties.
  • Counties with more college-educated residents (even when grants to universities and students were removed from the sample) received more grants per person.
  • Rural organizations received more grants related to higher education, environment, and recreation/leisure than their urban counterparts.

 

 

Report Citation:  Pender, John L. Foundation Grants to Rural Areas Frrom 2005 to 2010: Trends and Patterns, EIB-141, U.S. Department of Agriculture, Economic Research Service, June 2015.