Scharbauer Foundation Inc.

The Scharbauer Foundation is one of the most consequential private foundations in West Texas, with $560 million in assets (2024) and annual grant disbursements that reached $29.6 million in fiscal year 2024 — more than doubling what the foundation distributed just five years prior. Named for the Scharbauer family, whose Permian Basin ranching and oil history is woven into Midland's identity, this foundation invests almost exclusively in the two communities it calls home: Midland and Odessa.

The foundation's giving philosophy centers on building lasting infrastructure rather than sustaining recurring programs. Its own guidelines state an explicit preference for "capital improvements, construction, or expansion of program capacity," and the grantee record confirms it at every scale — from a $12.25 million capital campaign for the Permian Basin Behavioral Health Center to a $3 million grant for establishing IDEA Public Schools in the region. This is a foundation that funds buildings, equipment, and physical expansion capacity, not operating budgets.

The relationship progression follows a structured two-stage process: online pre-application → staff review → full application by invitation → site visit → board decision. The pre-application window is narrow — just 14 days for the spring cycle (January 8-22) — and submissions must arrive by 5 PM on the deadline day.

First-time applicants must contact foundation staff before submitting. This is stated explicitly in the application guidelines and reflects the foundation's relationship-centered culture. Staff want to advise whether your project fits before you invest time applying. Treat this consultation call as a strategic intelligence conversation: ask what the board is weighing in the current cycle, what similar projects have recently been funded, and whether there is a typical first-grant threshold for new applicants.

Repeat grantees demonstrate that Scharbauer builds long-term partnerships with high-performing organizations. Midland Memorial Foundation has received 15 grants totaling $6.8 million; Midland College Foundation has received 12 grants totaling $14.6 million. First-time applicants should plan for a multi-year relationship, not a one-time ask — frame your initial proposal as the foundation of a partnership, demonstrate impact clearly, and plan the next capital project before you submit thank-you materials.

Organizations outside Midland and Odessa are effectively ineligible. The handful of Colorado grants in the public record appear to be board-directed gifts to personal relationships, not opportunities accessible to general applicants.

Grant Size Distribution

Scharbauer's 990 data records 352 grants totaling $78.9 million across the tracked period, yielding an average of $224,341. However, the distribution is heavily right-skewed: the median grant sits at approximately $50,000 while the average reaches $249,610 — indicating a small number of transformational capital commitments pull up the mean significantly.

Grant tiers from the grantee record: - Mega grants ($2M+): Permian Basin Behavioral Health Center ($12.25M across 3 grants), Midland College Foundation ($14.6M across 12 grants), Communities Foundation of Texas ($3M for IDEA Public Schools), Midland Community Theatre ($2.5M), Ellen Noel Art Museum ($2M), Midland Downtown Park Conservancy ($2M) - Major grants ($500K–$1.99M): West Texas Food Bank ($4.2M across 7 grants), Safe Place of the Permian Basin ($3.6M), Senior Life Midland ($3.5M), Texas Tech Health Science Center Permian Basin ($1M), Odessa College Foundation ($1M) - Mid-range grants ($100K–$499K): Nonprofit Management Center ($958K), The Holdsworth Center ($750K), UT Permian Basin ($691K), Young Life ($650K) - Small grants (under $100K): COVID one-time unrestricted grants, equipment purchases, targeted capacity-building awards

Annual Giving Trends

The foundation's disbursement capacity has grown dramatically alongside a surging endowment: - 2019: $17.3M grants paid ($204.6M assets) - 2020: $14.7M ($221.6M assets) — COVID year, one-time unrestricted grants issued - 2021: $16.0M ($271.1M assets) - 2022: $14.5M ($342.5M assets) - 2023: $19.3M ($454.0M assets) - 2024: $29.6M ($560.0M assets) — step-change in disbursements - 2025: $25M+ estimated (fall cycle alone $16M+, spring cycle $9M)

Net investment income reached $80.1 million in 2023, effectively funding multiple years of grants in a single year and providing the financial basis for larger cycles going forward.

Sector Breakdown (estimated from top 50 grantee analysis) - Education: ~38% (Midland College, IDEA Public Schools, teacher development, scholarships, literacy) - Healthcare: ~32% (Behavioral Health Center, Midland Memorial, specialty clinics, mental health) - Human Services: ~18% (West Texas Food Bank, Safe Place, homeless services, substance recovery) - Quality of Place: ~12% (arts, senior living, parks, recreation, community infrastructure)

Capital campaigns dominate across all four sectors. Even workforce development grants tend to fund staff positions representing organizational expansion capacity rather than pure programming.

The four size-comparable foundations share Scharbauer's asset range (~$555–561 million) but differ markedly in geographic strategy, thematic focus, and application accessibility. Scharbauer is by far the most locally concentrated of the peer group — directing nearly all resources to two Texas cities — while its size peers operate nationally or globally.

Scharbauer's open pre-application process — twice annually, with explicit public deadlines — is a meaningful differentiator among foundations of similar asset size. Most comparable national foundations rely on invitation-only or staff-initiated relationships, making Scharbauer one of the most accessible large private foundations in the American Southwest for organizations that meet its Permian Basin geographic requirement. The geographic exclusivity that limits applicant eligibility simultaneously concentrates funding in a regional market where few private foundations at this scale operate, making Scharbauer a dominant infrastructure funder for Midland and Odessa nonprofits. Peer giving estimates are calculated at the standard 5% private foundation minimum payout rate; actual disbursement figures vary by investment performance and board policy.

The fall 2025 grant cycle — announced in December 2025 — was described by Mary Ann Beninati, cited in news coverage as the foundation's CEO and President, as "one of the largest in Scharbauer Foundation's history," with more than $16 million distributed to Midland-area nonprofits. Education grants in the fall cycle exceeded $7.1 million across five organizations, with notable awards to the Midland County Public Library Foundation for a pilot program delivering books to all Midland third graders, and to Round Up Inc. to launch a youth sports league at MISD elementary schools. Healthcare awards topped $4.1 million, including funding for a durable medical equipment van for Hospice of Midland. UT Permian Basin and Texas Tech University received grants specifically supporting Midland ISD's Grow Your Own teacher and principal pipeline, extending the foundation's multi-year investment in educator workforce development.

The spring 2025 cycle awarded approximately $9 million, including support for IDEA Henry school construction (IDEA Public Schools Permian Basin), continued Early College High School funding at Midland College for 2025-26, and Cook Children's Midland Specialty Clinic healthcare infrastructure.

A notable leadership development: Mary Ann Beninati, listed as Executive Vice President in the foundation's 2024 IRS filing (behind President & CEO Grant Billingsley), appears in December 2025 news coverage as CEO and President, suggesting a leadership transition during 2025. The foundation's 2026 spring grant cycle opened January 8, 2026, with the pre-application window closing January 22.

Lead with capital, not programs. The foundation's own guidelines state a preference for "capital improvements, construction, or expansion of program capacity," and the grantee record confirms it at every grant size. Proposals that fund equipment purchases, building renovations, new construction, or facility expansions will receive the most favorable review. The foundation has explicitly stated it "generally will not fund consecutive year non-capital grants" — which means operating support requests face a high bar, and returning applicants must bring a new capital project, not renew an operating ask.

Make the pre-consultation call — and use it strategically. First-time applicants and organizations proposing something outside standard guidelines are required to contact staff before submitting. Call (432) 683-2222 or use the contact form at scharbauerfoundation.org. Prepare three questions for this call: What are the board's current funding priorities? What similar projects have been funded recently? Is there a typical first-grant ceiling for new applicants? The answers will meaningfully sharpen your proposal.

Anchor your proposal in one of four focus areas. Scharbauer organizes its giving around Education, Healthcare, Quality of Place, and Human Services. Use this language explicitly in your proposal narrative. If your project spans multiple areas (e.g., a mental health clinic serving school-age youth), identify the single primary category and build your case around it.

Match your project timeline to the grant cycle. The spring cycle (pre-applications January 8-22, decisions mid-May) positions funded projects for summer construction starts. The fall cycle (early December decisions) aligns with year-end capital budget commitments and January ground-breakings. Choose the cycle where your project's readiness and timeline make the strongest case for immediacy.

Lead with Permian Basin-specific data. The foundation commissioned five grants totaling $642,126 for a multi-phase Permian Basin Community Healthcare Needs Assessment through UT System — evidence that locally grounded, community-specific research drives their investment thinking. Reference regional data on the need your project addresses: workforce gaps, healthcare access metrics, educational attainment, food insecurity rates in Midland or Odessa specifically.

Plan for multi-year partnership, not a single award. The foundation's top grantees (Midland Memorial Foundation: 15 grants; Midland College Foundation: 12 grants) show it rewards demonstrated performance with return relationships. Include a measurable impact framework in your first proposal, report results proactively, and identify your next capital project before the current one closes.