Grayson Family Foundation Inc.

## Approach Strategy for Grayson Family Foundation Inc.

The Grayson Family Foundation is a substantial private non-operating foundation established in 1997, headquartered at 81 Beacon Street in Boston, Massachusetts — one of the most prestigious addresses in the city, on the edge of Boston Common. Despite reporting book assets of approximately $6.2M, the foundation's fair market value is approximately $24.8M, indicating significant unrealized gains in its investment portfolio. The foundation distributes $922K to $1.6M annually to 501(c)(3) organizations, with no operations other than grantmaking. There is no public website or application process. The Beacon Street address suggests the foundation may be managed through a family office or wealth management firm. Organizations seeking funding should work through Boston philanthropic networks, particularly those connected to Beacon Hill and Back Bay social circles. Without published focus areas, reviewing the foundation's 990-PF grantee lists is the most reliable way to identify priorities.

## Funding Patterns Analysis

The Grayson Family Foundation has shown strong and accelerating grantmaking over five years:

• 2023: $1,595,500 in grants (total expenses: $1,626,247, book assets: $6.2M, FMV: $24.8M)
• 2022: $1,142,250 in grants (total expenses: $1,182,223, book assets: $7.0M, FMV: $25.0M)
• 2021: $1,020,850 in grants (total expenses: $1,035,658, book assets: $7.9M, FMV: $31.9M)
• 2020: $1,063,000 in grants (total expenses: $1,089,138, book assets: $8.7M, FMV: $23.7M)
• 2019: $922,350 in grants (total expenses: $951,826, book assets: $7.9M, FMV: $22.2M)

The five-year average is $1.15M annually, with a 73% increase from 2019 to 2023. This is a dramatically accelerating grantmaker. The payout rate relative to FMV was approximately 6.4% in 2023, well above the IRS minimum. Administrative overhead is very lean at approximately 2% of total expenses ($31K in 2023), indicating minimal staffing and low operating costs. The significant gap between book value ($6.2M) and FMV ($24.8M) represents approximately $18.6M in unrealized gains, mostly likely in appreciated securities or real estate holdings.

## Peer Comparison

The Grayson Family Foundation stands out for its extremely lean operations (2% overhead), strong grant growth (73% over five years), and massive unrealized gains. The 75% gap between book and fair market value is unusual and suggests the portfolio is heavily weighted toward long-held appreciated assets. The foundation's grantmaking pace exceeds most peers in its class, and the 6.4% payout rate demonstrates genuine philanthropic commitment beyond minimum requirements.

## Recent Activity and Trends

Key observations from the Grayson Family Foundation's recent filing history:

• Accelerating Grantmaking: The most striking trend is the dramatic 73% increase in grantmaking over five years, from $922K (2019) to $1.6M (2023). The largest single-year jump was between 2022 ($1.14M) and 2023 ($1.60M), a 40% increase. This acceleration suggests the family may be increasing philanthropic engagement or responding to specific needs.

• Portfolio Dynamics: The FMV peaked at $31.9M in 2021 (likely reflecting equity market highs) before declining to $24.8M in 2023. Despite this 22% decline in FMV, the foundation increased grantmaking by 56% over the same period, demonstrating a willingness to maintain and grow distributions even during market downturns.

• Declining Book Value: Book assets declined from $8.7M (2020) to $6.2M (2023), while FMV remained much higher. This pattern is consistent with drawing down cost-basis investments while retaining highly-appreciated positions, which could have tax implications for the foundation's investment management strategy.

• Ultra-Lean Operations: With only $31K in non-grant expenses in 2023, the foundation operates with virtually no overhead. This suggests no paid staff, no office costs, and likely volunteer or family-managed operations with perhaps a hired accountant for tax compliance.

• No Outside Contributions: The foundation operates entirely from its investment portfolio, receiving no gifts or contributions. The significant unrealized gains provide a substantial cushion for continued or increased grantmaking.

## Application Tips

The Grayson Family Foundation has no public website, application process, or published guidelines. Organizations seeking consideration should:

1. Review 990-PF Grantee Lists: Download the foundation's IRS 990-PF filings from ProPublica to identify past recipients. With $1.6M distributed in 2023 and no stated focus areas, the grantee list is the single best indicator of the foundation's priorities. Look for patterns in sector, geography, and grant size.

2. Boston Network Connections: Located at 81 Beacon Street in Boston, the foundation is situated in the heart of the city's philanthropic establishment. Engage through Boston-area nonprofit associations, charity galas, and cultural institution boards where high-net-worth families in the Beacon Hill neighborhood are active.

3. Emphasize Efficiency: With only 2% administrative overhead, the foundation clearly values lean operations and maximum charitable impact. Proposals should demonstrate financial efficiency and direct impact per dollar.

4. Capitalize on Growth Trajectory: The foundation is actively growing its grantmaking (73% increase over five years), suggesting openness to new grantees and expanded giving. This is an opportune time to establish a relationship.

5. Send a Brief Letter: Mail to Grayson Family Foundation Inc., 81 Beacon Street, Suite 2, Boston, MA 02108. Keep to one page: organizational overview, specific project, requested amount, and evidence of impact. Given the ultra-lean operations, brevity and clarity will be valued.

6. Consider the FMV Context: With $24.8M in FMV, the foundation has capacity for grants well above the current $1.6M level. Individual grants could range from $10K to $200K for established grantees. New organizations should start with smaller, specific asks.