NEW YORK (AP) 鈥� Corporate foundations’ philanthropic commitments were called into question this past year as , rising costs and prompted many companies to reconsider their charitable strategies.
Nonprofits received a reassuring answer this week, however, from the century-old, Boston-based Liberty Mutual Insurance. The major insurer’s nonprofit Liberty Mutual Foundation announced Wednesday the establishment of a $600 million endowment, a long-term source of funding that leaders promise will bring lasting resources and more responsive grantmaking.
鈥淲e all know that we live in really challenging times. And that is very true for our nonprofit partners as well,鈥� Melanie Foley, the chair of the foundation’s board, told the Associated Press. 鈥淲e鈥檒l be there to continue to support them, be as flexible as we can be, really listening to what they need.鈥�
Endowments generally start with a set donation that is invested and allow foundations to increase their assets over time. Foley said Liberty Mutual Foundation had 鈥渕atured鈥� enough from its 2003 founding to necessitate 鈥渁 permanent, self-sustaining” funding source. The Fortune 100 company is funding the endowment by transferring assets such as shares held within Liberty Mutual entities.
The move places Liberty Mutual’s charitable arm among an influential subset of foundations with more than $100 million in assets. Partners should feel a 鈥渟ense of security,鈥� according to Foley. This new source will allow the foundation to increase grantmaking from its roughly $50 million baseline of recent years.
Foley emphasized that Wednesday’s announcement isn’t a response to recent developments in the sector. But the news arrives at a time of great instability for nonprofits. There’s been a yearslong who make up the bulk of U.S. philanthropic funding. The Trump administration’s have left many organizations without a once-reliable avenue for funding. Companies and philanthropies have reversed course on diversity, equity and inclusion efforts that often resulted in support for nonprofits serving vulnerable communities.
Those poised to benefit most from Liberty Mutual Foundation’s endowment are Boston-area nonprofits addressing its focus on housing stability, workforce development and climate resiliency 鈥� areas where leaders believe they can leverage their expertise as a global property and casualty insurer. The foundation directed gifts to more than 500 nonprofits last year, according to a company spokesperson. Previous recipients include national nonprofits like the American Red Cross, local chapters of groups such as the Boys & Girls Clubs of America and community organizations serving homeless youth such as Bridge Over Troubled Waters.
Corporate foundations offer nonprofits a level of 鈥渞igor and relevance鈥� when they align their purpose with the business’ outcomes, according to Leah Battin, the manager of strategic advisory at Chief Executives for Corporate Purpose. A healthcare company might address social determinants of health such as pollution or nutrition with greater precision than a family or community foundation lacking in that background.
鈥淭hey can take long-term views around ecosystems change that really benefit and draw from the expertise of the company,鈥� she said.
With the new endowment, Foley said Liberty Mutual Foundation plans to provide more high impact grants over longer periods. She pointed to a recent program that provides nonprofit collaboratives with the time and resources to tackle complex challenges they can’t handle alone. Its first year saw more than $9 million go toward more than a dozen partnerships addressing issues from workforce readiness to food security. A handful received three-year support, which Foley said represents the outer limits of their grant durations.
The foundation also intends to make spot grants similar to those coming out of COVID-19 aimed at remediating inflationary pressures, according to Foley. The idea, she said, is to be there when 鈥渢he unexpected鈥� happens.
鈥淎s things come up in the environment, we’re gonna be there to think with our partners of how we are best suited to support them,鈥� Foley said.
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