Study Shows Outsourcing Back-Office, Technology and Support Services Decreases Foundations’ Operating Expenses

Foundation Source, a leading provider of outsourced services for private foundations, recently conducted a study to determine the most cost-effective approach to private foundation administration. According to their study, the outsourced model is the most efficient. Here are some of the highlights of this study:

• Average Operating Costs as a percentage of Total Foundation Assets were lower across the board for foundations choosing an outsource services model.
• Foundations of all asset ranges: Operating costs for foundations outsourcing to Foundation Source were 26% lower than costs reported by all U.S. Foundations.
• Foundations with assets under $50 million (97.1% of all foundations): Operating costs for foundations outsourcing to Foundation Source were 50% lower than costs reported by comparably-sized U.S. foundations.

See Foundation Source, New Operating Cost Benchmark Established for Private Foundations, foundationsource.com, Sept. 18, 2007.