Every year, this report gives us a fresh look at how private foundations are actually behaving — not just what they say, but what the numbers show. This year’s edition covers 2024 and 2025, a stretch marked by policy shifts, economic crosscurrents, and no shortage of uncertainty for the nonprofit sector. Against that backdrop, we dug into data from more than 1,200 private foundations to see how they responded. Here are the four trends that stood out most…
1. Foundations Exceeded The Minimum (Once Again)
As they typically do, foundations in our study exceeded the annual 5% payout requirement — averaging 2.1% above the minimum. Even amid a transitional time for the sector, foundations continued to lean into their missions rather than pull back, reinforcing their role as a stabilizing force for the nonprofits and communities that depend on them.
2. The Same Causes Stayed On Top
Education, Public/Societal Benefit, and Human Services remained the top three funding priorities among the foundations we studied. That consistency reflects continued, constant support for a broad range of community needs, even as other parts of the giving landscape shifted around them.
3. Foundations Favored Focus Over Flexibility
Rather than granting funds for general operating use, foundations continued to prefer targeted philanthropy — directing dollars toward specific programs and outcomes aligned with their missions. This preference held steady year-over-year, suggesting foundations are staying disciplined about how, not just where, their dollars are deployed.
4. A Subset Of Foundations Got More Sophisticated
A subgroup of foundations went beyond traditional grantmaking, employing advanced giving strategies to complement — or in some cases deviate from — the conventional grant model. This points to a growing appetite among some foundations for more creative, tailored approaches to achieving impact.
Stability, By The Numbers
What stands out most in this year’s report isn’t dramatic change — it’s consistency. Amid changes in public policy, shifting community needs, and ongoing uncertainty for many organizations, private foundations largely stayed the course: giving generously, giving thoughtfully, and giving with purpose.
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