After a record $33-billion giving year in 2005, a new report by the Foundation Center predicts a less active 2006, the Chronicle of Philanthropy reported April 20.

Foundation assets grew only two to four percent last year, the annual report, Foundation Growth and Giving Estimates: Current Outlook said. Most foundations used the previous year's endowment value to determine giving; a 7.1 percent increase in assets in 2004 contributed to the larger increases in giving in 2005. The report said 32 percent of respondents said they planned to reduce their grantmaking, versus 25 percent last year.

In addition, unusually high giving in 2005 as a result of Hurricane Katrina ($1.7 billion more than 2004) accounts for some of the predicted 2006 dropoff. Inflation has also played a part, and is expected to offset most grantmaking increases this year.

Only community funds are expected to see significant increases in their charitable donations, having donated nine percent of all awards last year, and whose giving increased 7.2 percent. Corporate giving also seems to be recovering, with 2.3-percent increase in 2005.

Foundation Growth and Giving Estimates: Current Outlook is available online in PDF format.