Private foundation giving rises 15% to $1.14 billion

Private foundations in the US increased charitable giving by 15% to $1.14 billion in 2025 while distributing 7.1% of assets, as families balanced philanthropy with continued growth in foundation endowments and varied investment strategies.

Foundation Source, the leading provider of philanthropic solutions for donors, nonprofits, institutions and the wealth advisors who serve them, today released the 2026 Report on Private Philanthropy: Giving and Investment Trends within Private Foundations, its annual transaction-based analysis of private foundation giving and investment activity. The report found that foundations gave $149.5 million more in charitable grants in 2025, totaling $1.14 billion compared to $990.5 million in the prior year.

Drawing on transaction and investment data from 1,237 private foundations with assets between $1 million and $1 billion, the report examines the size, timing, purpose, and geographic reach of grants, as well as foundation inflows and outflows, portfolio growth, and asset allocation. It offers a benchmark for families and advisors planning for the remainder of the giving season and for 2027.

"The foundations in our study truly stepped up to meet the moment," said Gillian Howell, Senior Vice President, Client Success at Foundation Source. "Nonprofits and the communities they serve are facing shifting needs, policy changes, and funding uncertainty, but our clients distributed well above the annual minimum and by increasing they dollars they put to work, these foundations not only provided sustaining support, but also responded to the newly arising needs."

Among the key findings from the report:

Private foundation giving surpassed $1.1 billion, up 15% – The 1,237 foundations studied made 40,210 grants totaling $1.14 billion in 2025, an increase of 5.3% in the number of grants and 15.1% in grant dollars from 2024. Larger foundations drove the greatest increase, with grant dollars rising 22.6%.

Foundations continued to give well above the 5% required minimum – Foundations distributed an average of 7.1% of their assets in both 2024 and 2025. Smaller foundations, with $1 million to $10 million in assets, gave the most relative to their size, distributing 9.9% of assets in both years.

Education attracted the most grant dollars, while Human Services received the most grants – Among identified charitable categories, Education received the largest share of grant dollars (19.0%), followed by Public/Societal Benefit (16.5%) and Human Services (13.7%). Health recorded the largest year-over-year gain in funding share, rising 2.6 percentage points to 10.2%. Human Services received 7,785 grants, more than any other identified category.

Foundations favoured targeted giving – About 60% of grants supported designated programs or initiatives and 40% provided general operating support. The preference increased with foundation size: 70% of grants from larger foundations were designated for specific purposes, while smaller foundations split their giving almost evenly.

Foundation endowments grew while giving remained strong – The foundations studied ended 2025 with $5.7 billion in assets, up from $5.1 billion at the end of 2024, an overall increase of approximately 11%. Mid-size foundations recorded the strongest net asset growth, at 13.9%.

Investment strategies varied significantly by foundation size – Smaller foundations held 64.4% of their portfolios in equities and just 3.8% in alternatives, while larger foundations allocated 48.9% to equities and 20.9% to alternatives—more than five times the alternatives exposure of smaller foundations.

"Strong endowments and sustained giving provide a solid foundation as families head into the 2026 giving season," said Joseph Mrak III, CEO of Foundation Source. "With more than 40% of grants typically made in the fourth quarter, now is the time for families and their advisors to plan with intention. When charitable planning is part of the broader wealth conversation, that giving can be even more impactful."

Re-disseminated by Wealth and Society