Following the Money: An Analysis of Foundation Grantmaking for Community and Economic Development.

Grants from foundations, while a relatively small but growing slice of overall philanthropic giving, are an important source of support for local community and economic development. The primary goals in this study were to examine why some metro areas attract more grant capital than others and determine whether the size of the area or its level of distress has any explanatory power. The density of nonprofit organizations and the presence of large, local foundations are shown to be consistently significant predictors of grant receipt. After controlling for these and other factors, analysis indicates that, compared with smaller metro areas, more populous ones receive a greater level of grant capital from the largest foundations. Contrary to expectations, the same is true for places with higher poverty rates. [ABSTRACT FROM AUTHOR]