The longest period of economic growth in history led to a record-setting $22.8 billion in grantmaking by U.S. foundations during 1999, a 17.2 percent increase in giving to nonprofits, according to a new report by the Foundation Center.

As the expanding economy created new wealth (and new philanthropists), it also boosted the endowments of the nation's largest private foundations, corporate foundations and community grantmakers, according to the "Foundation Growth and Giving Estimates: 1999 Preview" report. (Adobe's free Acrobat Reader software is required to view the full report.)

Leading the trend, corporate foundations recorded a 22.2 percent increase in giving, which offset recent corporate giving patterns.

Last year was "a watershed for corporate foundations," Foundation Center President Sara Engelhardt said. "They have been building their assets for several years, and the impact of that trend is making itself felt in greatly increased giving. This is good news for communities that rely on companies as a key source of private giving."

With assets of at least $13.1 billion (and probably more once 1999 figures are complete) corporate foundations -- led by such groups as the Bank of America Foundation -- gave nearly $3 billion last year, a significant increase over the $2.45 billion given in 1998 and the $2.07 billion given the year before.

The record levels of grantmaking by all types of foundation are attributed to a low two-percent annual inflation rate, coupled with the nation's stand-out economic growth, which boosted the value of existing endowments, pushed new money into these foundations and led to more foundations being created, the center reports.

Grantmaking by independent foundations -- including such groups as the Bill & Melinda Gates Foundation and the David and Lucile Packard Foundation, other family foundations and private health-care conversion organizations -- gave $17.5 billion last year, a 17.3 percent boost from 1998 giving.

Community foundation giving trailed slightly, accounting for $1.68 billion last year, but nearly 15 percent more than the $1.46 billion given the year prior. These groups reported assets of nearly $23 billion at the end of 1998, the center reports.

Total foundation endowment assets climbed to $385 billion in 1998.

While figures aren't yet in for 1999, the number of active foundations increased by at least 12 percent from the beginning of 1997 to the end of 1998.

The number of foundations has doubled since 1980, from more than 22,000 philanthropic groups 20 years ago to an estimated 47,000 foundations now, the center reports.

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