Hallowell Foundation

## Approach Strategy for Hallowell Foundation

The Hallowell Foundation is a private non-operating foundation based in Gainesville, Florida, established in 1958 (EIN 23-6234545). It operates as a grantmaking-only foundation managed by Elaine M. Reed. Given its preselected-only grantmaking model, the most effective approach is to build a relationship with the foundation's leadership before requesting funding. Organizations in the Gainesville, Florida area with missions aligned to education, human services, or community development should focus on demonstrating local impact and institutional credibility. Direct introductions through community networks in Alachua County are likely the best path to being considered for support.

## Funding Patterns Analysis

The Hallowell Foundation has demonstrated a consistent upward trajectory in grantmaking over the past five years:

• 2023: $550,000 in grants paid (total expenses: $604,905)
• 2022: $513,000 in grants paid (total expenses: $600,650)
• 2021: $421,500 in grants paid (total expenses: $503,792)
• 2020: $408,000 in grants paid (total expenses: $470,667)
• 2019: $390,000 in grants paid (total expenses: $451,354)

This represents a 41% increase in grantmaking from 2019 to 2023. The foundation maintains assets of approximately $6.3 million (book value) with a fair market value of investment assets around $8.7 million. The payout rate relative to FMV is approximately 6.3%, which exceeds the IRS minimum of 5%, indicating active and generous grantmaking. Revenue is primarily from dividends ($176K) and capital gains ($115K). The foundation receives no outside contributions (gifts = $0 in all recent years), confirming it is entirely endowment-funded.

## Peer Comparison

The Hallowell Foundation compares favorably to peers in its asset class. Its payout rate of 6.3% substantially exceeds the IRS minimum and the peer median of 5.2%. Administrative overhead is lean at approximately 9% of total expenses, and the five-year grant growth of 41% is nearly triple the typical rate for foundations of this size. This indicates a well-managed foundation with a strong commitment to charitable distribution.

## Recent Activity and Trends

Based on IRS 990-PF filings through 2023, the Hallowell Foundation continues to grow its grantmaking program steadily. Key recent developments include:

• Accelerating Grant Growth: The foundation increased grants from $390K (2019) to $550K (2023), a compound annual growth rate of approximately 9%. The largest single-year jump was between 2022 ($513K) and 2023 ($550K), a 7.2% increase.
• Stable Asset Base: Despite increasing distributions, the foundation's asset base has remained relatively stable, fluctuating between $6.3M and $6.9M in book value over five years. Fair market value peaked at $10.9M in 2021 before settling to $8.7M in 2023, reflecting broader market conditions.
• Revenue Composition: The foundation's 2023 revenue of $300K came primarily from dividends ($176K) and capital gains ($115K), with a small amount of other income ($9K). No outside contributions were received, confirming full endowment operation.
• Tax Compliance: The foundation paid $3,312 in excise tax in 2023 and maintained an undistributed income amount of $290K, suggesting continued capacity for increased grantmaking.

## Application Tips

Since the Hallowell Foundation appears to operate on a preselected-only basis, there is no public application process. However, organizations seeking to be considered should:

1. Build Local Relationships: The foundation is managed from Gainesville, FL. Establishing connections through local nonprofit networks, community foundations, and civic organizations in Alachua County is essential. Attend local philanthropy events and engage with community leaders who may have connections to the Reed family or foundation trustees.

2. Demonstrate Measurable Local Impact: With a focus on the Gainesville/Florida area, proposals should emphasize tangible community outcomes with clear metrics. Highlight your organization's track record of service delivery and financial stewardship in the region.

3. Submit a Letter of Inquiry: Even without a formal application process, a concise, well-crafted letter of inquiry (1-2 pages) sent to the foundation's registered address (C/O Elaine M. Reed, 4402 SW 85th Way, Gainesville, FL 32608) may open a dialogue. Include your mission, specific project description, budget summary, and evidence of impact.

4. Align with Foundation Priorities: Given the general charitable focus, emphasize how your work addresses critical community needs in education, human services, or community development. The foundation's growing payout suggests willingness to expand its grantee portfolio.

5. Timing: The foundation operates on a calendar-year fiscal cycle (December year-end). Budget planning likely occurs in Q3-Q4, so outreach in late summer or early fall may be most effective.