The Boston Foundation has announced that it is increasing the amount of discretionary funds it will make available to Boston-area nonprofit organizations by 20 percent, or roughly $2 million, in the upcoming year.

The foundation's new payout target of 6 percent, up from 5 percent, will determine the amount of money available for its discretionary grants, the funds that nonprofit organizations in Greater Boston may apply for. Next year, the foundation anticipates having $13.6 million available, compared to this year's figure of $11.6 million. Discretionary grants are made from the foundation's Community Fund, a collection of gifts made to the foundation for distribution to nonprofit groups working to meet the needs of Greater Boston's residents across a broad range of issues.

"Like most endowed institutions, the Boston Foundation struggles to balance the current versus the future needs of generations of Bostonians," said foundation president and CEO Paul S. Grogan. "Fortunately, over the past twenty years, community foundations have grown significantly, and the high pace of asset accumulation is likely to continue or even accelerate over the next twenty years. By factoring in this growth, we want to make more money available to local nonprofits at a time when many of them are struggling."