Private Foundation Giving Surpasses $1 Billion in 2025
In 2025, private foundations distributed a record $1.14 billion in charitable grants, marking a 15% increase from the previous year and exceeding expectations for giving levels. The report by Foundation Source analyzed data from over 1,200 private foundations with assets ranging between $1 million and $1 billion, revealing that these entities gave an average of 7.1% of their total assets—well above the required minimum distribution rate of 5%. Larger foundations contributed significantly to this growth, increasing grant dollars by 22.6%, while smaller ones distributed a higher percentage (9.9%) relative to their size. The report highlights that education received the largest share of funding at 19% of total grants, followed closely by public/societal benefit and human services. Health-related giving saw notable growth as well, increasing its share by nearly three percentage points year-over-year. The foundations also showed a preference for targeted program support over general operating funds, with larger foundations allocating more than two-thirds of their grants to specific initiatives. Despite robust charitable spending, foundation endowments grew in 2025, reaching $5.7 billion—up from $5.1 billion the previous year. This growth was most pronounced among mid-sized foundations and reflects varied investment strategies depending on size: smaller foundations held a higher proportion of equities while larger ones invested more heavily in alternatives.
Topics: charitable giving investment trends philanthropy private foundations