Palmer Foundation

## Approach & Strategy

The Palmer Foundation is a family-managed private foundation headquartered in New Braunfels, Texas, governed by the Palmer and Hayes families. Led by President William Palmer Hayes, the foundation operates with a lean, all-volunteer board of four directors — none of whom receive compensation — keeping administrative overhead minimal and maximizing the share of assets directed to charitable purposes.

The foundation's stated purpose is broad: "to receive and maintain a fund to distribute for charitable, scientific, or educational purposes to organizations that qualify under 501(c)(3)." In practice, it concentrates its giving in three core areas: education (K-12 schools, charter schools, Head Start programs), human services (food banks, children's welfare organizations), and youth development. A secondary interest in arts, culture, and humanities — including creative writing, journalism, and historic preservation — rounds out its portfolio.

Geographically, while based in the Texas Hill Country, the Palmer Foundation funds nationally. Texas is the primary focus state (New Braunfels, Houston, San Antonio, Austin), but grants also flow to organizations in Pennsylvania, Colorado, California, Maryland, and Washington, D.C. This multi-state reach suggests the foundation follows family connections and interests rather than a strictly regional mandate. Prospective applicants outside Texas should not self-select out if their mission aligns with the foundation's focus areas.

## Funding Patterns

The Palmer Foundation maintains remarkably consistent giving patterns, distributing approximately $300,000–$320,000 annually across 19–23 grants per year over the past five years:

Grant size range: $1,000–$50,000, with a median around $15,000–$17,000. The largest single grants ($35,000–$50,000) go to established human services organizations in the Houston area, particularly those serving children and families. Smaller grants ($1,000–$10,000) typically support education and arts initiatives.

Notable 2024 grantees and amounts: - New Braunfels Food Bank: $50,000 (largest single grant — local anchor) - Casa de Esperanza de Los Niños: $35,000 (Houston foster care/child welfare) - DePelchin Children's Center: $35,000 (Houston children's services, est. 1892) - Kid's Meals: $35,000 (Houston childhood hunger)

The foundation's total assets of approximately $4.98 million yield a payout rate of roughly 6.3%, well above the IRS-required 5% minimum distribution for private foundations. This suggests a spend-down or at minimum a generous distribution philosophy rather than an endowment-growth strategy.

## Peer Comparison

The Palmer Foundation sits in the mid-range of Texas-based private family foundations by assets. Below is a comparison with similarly sized foundations operating in overlapping focus areas:

Key differentiators: - Payout rate (6.3%) exceeds most peers, which typically hover around 5%. This signals generosity relative to asset base. - Zero administrative compensation is unusual — most foundations this size pay at least a part-time administrator. This keeps the overhead-to-giving ratio exceptionally low. - National reach from a small-town base is distinctive. Most sub-$10M Texas foundations concentrate giving locally. - Stability: The consistent 19–23 grants/year pattern over five years indicates reliable, predictable funding — a positive signal for applicants. - New applicant success rate of ~12% (per Grantable data) is modest but not unusual for private family foundations that maintain long-term grantee relationships.

## Recent Activity

2024 Grantmaking: The Palmer Foundation awarded 20 grants totaling $312,000, maintaining its five-year pattern of steady giving in the $300K–$320K range. The grant count ticked up from 19 in 2023 to 20, with average grant size holding at approximately $15,600.

Grantee Highlights: The foundation continued its strong support of Houston-area children's services organizations. Casa de Esperanza de Los Niños (voluntary foster care and family support, founded 1982) and DePelchin Children's Center (one of the oldest children's nonprofits in Texas, founded 1892) each received $35,000 — consistent with multi-year funding relationships. Kid's Meals, which delivers free meals to Houston preschool-aged children living in poverty, also received $35,000.

The New Braunfels Food Bank received the largest single grant at $50,000, reinforcing the foundation's commitment to its home community. This local anchor grant, combined with broader Texas and national giving, reflects a "home plus mission" funding philosophy.

Asset Position: Total assets of $4.98M represent a slight decrease from the $5.16M reported on Grantable, consistent with the above-5% payout rate and possible market fluctuations. The foundation does not appear to be receiving significant new contributions, suggesting it operates primarily from investment returns.

Board Stability: The four-member board (William Palmer Hayes, John Raymond Palmer, Shelley Palmer Hayes, Patrick John Hayes) remains unchanged, providing continuity in grantmaking philosophy and relationships.

Website Note: The domain palmerfoundation.org belongs to the unrelated Arnold & Winnie Palmer Foundation. The Palmer Foundation (EIN 76-0565827) does not maintain its own public website, which is common for smaller family foundations that accept applications through direct contact or referral.

## Application Tips

1. Align with proven focus areas. The Palmer Foundation consistently funds education (K-12, charter, Head Start), human services (food banks, children's welfare), and youth development. Proposals outside these areas face long odds. Arts and humanities proposals should demonstrate clear community impact.

2. Right-size your ask. With an average grant of ~$16,000 and a maximum observed grant of $50,000, calibrate your request accordingly. First-time grantees are more likely to receive $5,000–$15,000. Organizations with multi-year relationships may receive $25,000–$50,000.

3. Demonstrate direct service impact. The foundation's top grantees (food bank, foster care, children's meals) all provide tangible, direct services to vulnerable populations. Program proposals should emphasize measurable outcomes: meals served, children housed, students supported — not administrative capacity or indirect advocacy.

4. Texas connection helps but is not required. While the foundation is based in New Braunfels and many grantees are in Texas (particularly Houston), it funds nationally. If you are outside Texas, demonstrate clear mission alignment and strong outcomes rather than geographic proximity.

5. Contact directly — no website portal. The Palmer Foundation does not have a public website or online application portal. Reach out via mail to 350 Buffalo Springs Rd, New Braunfels, TX 78132. A concise letter of inquiry (1–2 pages) describing your organization, the specific program, the amount requested, and expected outcomes is the appropriate first step.

6. Patience and persistence. With only ~12% of new applicants receiving funding, rejection is common. The foundation maintains long-term grantee relationships, so building familiarity over time through updates and re-applications can improve odds. The consistent 19–23 grants/year means there are limited new slots each cycle.

7. Children and family services are the sweet spot. Three of the four largest 2024 grants went to Houston-area organizations serving children. If your organization works with children, families, or food insecurity, you are squarely in the foundation's wheelhouse.