Mara W Breech Foundation

## Approach & Strategy

The Mara W Breech Foundation operates as a private non-operating foundation (IRS foundation code 4), meaning it functions exclusively as a grantmaking entity rather than running its own programs. Established in 1994 and based in Santa Monica, California, the foundation is managed through DOCS (a professional fiduciary/trust administration firm) at 2120 Wilshire Blvd, Suite 400.

Key strategic characteristics:

• Endowment-driven model: The foundation receives no external contributions in most years (zero gifts received 2020-2023), relying entirely on investment income from a diversified portfolio of government obligations, corporate stocks, and corporate bonds valued at approximately $10 million (fair market value).
• Conservative distribution: The foundation consistently meets its IRS minimum distribution requirement (~5% of assets) but does not significantly exceed it, distributing $480K-$600K annually.
• Zero-compensation governance: No officers or directors receive compensation, suggesting a family foundation with volunteer governance and professional fiduciary administration through DOCS.
• Activity code 040: IRS classification indicating arts and cultural activities as the primary charitable purpose.
• Low administrative overhead: Administrative expenses run $63K-$82K annually (roughly 10-13% of total charitable distributions), indicating efficient operations.

## Funding Patterns

Annual Grantmaking Volume (2019-2023):

Trends observed:

• Steady growth in grantmaking: Distributions increased from $500,000 (2019) to $599,840 (2023), a 20% increase over five years.
• Consistent distribution pattern: The foundation reliably distributes $500K-$600K annually, with incremental increases year over year.
• Stable asset base: Despite annual distributions exceeding investment income in some years, the endowment has remained stable at $6.8-7.7M (book value) thanks to capital gains.
• Investment income: Dividend income ($147K-$164K/year) and capital gains ($82K-$568K/year, highly variable) fund operations.
• No new contributions: The foundation has not received outside contributions since 2019 ($144K that year, likely from the founding family), suggesting the endowment is considered fully funded.
• Minimum distribution compliance: Required distributions ($476K-$558K) are consistently met, with actual grants typically exceeding the minimum by 5-15%.

## Peer Comparison

The Mara W Breech Foundation occupies a specific niche among private foundations in the greater Los Angeles area. Below is a comparison with similarly-sized private non-operating foundations in the region:

Positioning:

• Asset class: The Mara W Breech Foundation falls in the small-to-mid-size category for Los Angeles private foundations ($5M-$15M FMV range). This places it well above micro-foundations (<$1M) but far below major LA foundations like Ahmanson or Annenberg.
• Payout ratio: At approximately 6% of book assets distributed annually, the foundation's payout ratio exceeds the IRS minimum (5%) by a modest margin, consistent with peer foundations of similar size.
• Administrative efficiency: With admin costs at 10-13% of distributions, the foundation is lean compared to peers that typically run 15-25% overhead.
• Grantmaking approach: Like many family foundations in its asset range, the Mara W Breech Foundation operates on a pre-selected basis. This is common among foundations under $25M that lack dedicated program staff.
• Growth trajectory: The foundation has grown its asset base from $4.7M (2011) to $6.9M (2023) in book value — a 47% increase — while also increasing annual grantmaking by over 100% during the same period ($252K to $600K). This suggests effective investment management.

## Recent Activity

2023 Filing Highlights (Most Recent Available):

• Distributed $599,840 in charitable contributions — the highest annual payout in the foundation's recent history
• Total assets of $6,889,635 (book value) / $10,111,399 (fair market value)
• Investment portfolio: $345K in government obligations, $4.5M in corporate stocks, $1.7M in corporate bonds, $100K in other investments
• Net investment income of $224,781 (dividends: $148K, capital gains: $147K)
• Administrative expenses of $73,780 (consistent with historical range)
• Paid $3,124 in excise tax on net investment income
• The foundation reported an excess of expenditures over revenue of ($375,059), meaning it distributed significantly more than it earned — drawing down principal to maintain grant levels

Multi-Year Trajectory:

The foundation has shown a notable commitment to increasing its charitable impact even during market volatility. The 2021 tax year saw exceptionally high revenue ($721K) due to large capital gains ($568K), while 2022-2023 saw more modest investment returns. Despite this, grantmaking continued its upward trajectory, suggesting the board prioritizes consistent and growing support for its chosen grantees over preserving the endowment at current levels.

Organizational stability: The foundation has filed consistently since its 1994 establishment (30+ years of continuous operation). No compliance flags, no penalties of note (minimal $5 estimated penalty in 2021), and consistent adherence to all IRS requirements for private foundations.

## Application Tips

Important: The Mara W Breech Foundation does not accept unsolicited grant applications. This is a pre-selected grantmaker that directs its funding to organizations chosen by its board.

For organizations seeking funding from this foundation:

1. Relationship-based approach: Since the foundation operates through DOCS (a professional fiduciary firm), building relationships with the foundation's principals is essential. The foundation is a family foundation with volunteer governance.

2. Alignment with arts and culture: The foundation's IRS activity code (040) and its Santa Monica base suggest a focus on arts and cultural organizations, likely in the greater Los Angeles area.

3. Demonstrate stability: The foundation has shown a preference for consistent, recurring support (as evidenced by its steady annual grantmaking). Organizations that can demonstrate long-term impact and financial stability may be more attractive.

4. Grant size expectations: With ~$600K distributed annually across multiple grantees, individual grants likely range from $5,000 to $50,000, with an estimated average around $25,000.

5. Geographic focus: Based in Santa Monica, the foundation likely prioritizes organizations serving the greater Los Angeles area or Southern California, though this cannot be confirmed without grantee lists.

6. No online application: There is no known application form or online portal. Any contact would need to go through the DOCS office at 2120 Wilshire Blvd, Suite 400, Santa Monica, CA 90403.

7. Timing: The foundation operates on a calendar year (December fiscal year-end). Grant decisions are likely made throughout the year to meet annual distribution requirements.