To learn more read the full report.

Total Giving
Total estimated charitable giving in the United States reached just over $592 billion in 2024. What’s more, total giving grew by 6.3 percent between 2023 and 2024 in current dollars (3.3 percent when adjusted for inflation). This was led by individual and corporate giving and fueled by a strong stock market and GDP growth.

Giving by individuals totaled just over an estimated $392 billion, growing 8.2 percent in 2024. This is a growth of 5.1 percent when adjusted for inflation.

“Despite uncertainty in the market, economy, and the political environment, Americans continue to be generous and committed to giving back,” said National Philanthropy Executive Gillian Howell. “Individual donors are particularly energized – a trend that we expect to grow as  younger generations passionate about grassroots social change harness more financial power. The development of modern tools and resources is also making it increasingly easy and cost-efficient for individuals to give. Nonprofits are leveraging technology that enables features like automated transactions, electronic grant delivery, and intuitive real-time dashboards for funders to seamlessly monitor giving activity alongside investments.”

Foundation Giving
Charitable giving by foundations also grew between 2023 and 2024—in this case by 2.4 percent, reaching an estimated total of just over $109 billion in 2024. When adjusted for inflation, foundation giving stayed flat at 0.5 percent between 2023 and 2024.

Giving by foundations includes grants made by independent, community and operating foundations, and amounted to 19 percent of all gifts made in 2024 (the exact same figure we saw in 2023). Giving by individuals represented the largest contribution by source at 66 percent.

Donor-Advised Fund (DAF) Giving
One of the fastest-growing charitable giving vehicles are DAFs. In fact, according to the report, DAFs are now driving a growing percentage of individual giving as donors are looking for new ways to give. DAFs serve as a strategic giving tool that is simple and streamlined to use, making it easy for donors to contribute more, efficiently fueling overall charitable giving.

Who Received The Most Contributions?
Religious organizations once again received the largest share of charitable dollars in 2024, at 23 percent of total giving (down just 1 percent from 2023). Human services organizations made up the second-largest portion in total gifts received at 14 percent of the total in 2024—the same percentage as 2023.

What’s Ahead For Giving?
This was the first time in three years that total giving outpaced inflation, which peaked in 2022 and has been declining since—another factor that supports consumer confidence and discretionary spending. What’s more, growth in total giving in 2024 was similar to the 40-year averages – 5.5% in current dollars (2.7% adjusted for inflation). So, while “uncertainty” may feel like the new normal, this data signals a positive year aligned with long-term trends.

As always, our experts continue to watch the charitable sector carefully, including the recently enacted One Big Beautiful Bill Act, which introduces changes that will impact tax-exempt organizations and charitable giving. The implications for the charitable sector are still unclear and the bill’s complexity underscores the need for proactive planning to sustain the charitable sector’s vitality. We recommend working proactively with your advisor to successfully navigate these rules.

No matter what the future brings, we’ll be here doing our part to serve and support the philanthropic sector with modern giving solutions.

Want More Insights Like These?
Explore our blogs on Giving & Investing Trends.

Want to learn more about the ways we support philanthropists and their professional teams?
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The post From Foundations to DAFs: Key Takeaways From Giving USA’s 2025 Report on Philanthropy appeared first on Foundation Source.

So far, more than 670 charitable giving organizations have signed on to support the Public Statement From Philanthropy. You can visit the Council on Foundations to view the statement, see the signatories and learn more.

Another organization, The Philanthropy Roundtable, is also championing the benefits of philanthropic freedom stating that it’s “essential to improving lives and strengthening our communities” and “charitable giving is most effective when donors are free to give to the causes and communities they care about most.”

While philanthropy-serving organizations and the entire philanthropic ecosystem continue to face uncertainty, one thing remains true: Foundation Source is committed to helping donors, nonprofits and advisors access the resources they need to give with efficiency, purpose and impact.

Questions in the Meantime?
We’re here to help! Whether you are looking for support for your existing foundation or want to create a private foundation, our philanthropic specialists are here to help. To learn more, schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

The post Fighting For Philanthropic Freedom: How Philanthropy-Serving Organizations Are Lending Their Voices and Taking Action appeared first on Foundation Source.

#2 They Have a Need for Greater Inclusion
All philanthropic participants must look for ways to enhance engagement for all genders and people of diverse racial and ethnic backgrounds.

#3 They Look Beyond The Dollars
Younger donors don’t yet have the financial resources to make big donations, but they still want to be involved.

#4 They’re Aware of Giving Approaches
Both Gen Z and Millennials demonstrate moderate awareness of giving approaches, but there are ways to improve. With increased knowledge, they may be more inclined to get involved.

#5 They Want to Make it Personal
Community and causes with deep personal meaning are primary motivators for charitable engagement. Seeing the direct impact of their contributions on local communities and solving systemic issues are important to them.

How to Harness the Power of NextGen
Private foundations, advisors and nonprofits can use these key takeaways as a lens to reframe their messaging and try new engagement strategies that resonate with these younger cohorts. Here are some examples.

Want to see even more insights?
From terms that resonate with them to their knowledge about charitable approaches, check out the full report.

Questions about this report?
We’re here to help! Schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

The post 5 Key Takeaways: How Gen Z and Millennials View Charitable Giving appeared first on Foundation Source.

#2: They Started Early In Life
Importantly, the way younger generations see the world and themselves in it has encouraged earlier, enthusiastic involvement without concern for tradition or optimization. According to our study, Millennials who engage in charitable activities started at an average age of 18. Gen Z started even younger — at age 14. Both cite a variety of activities, including volunteer days and food/clothing/supplies drives through school, religious organizations and employers that helped raise awareness at an early age and provide a framework for continued involvement.

#3: They Want to Learn More
While general knowledge of more formal giving approaches and vehicles is limited among both Gen Z and Millennials, they express interest in learning more without letting their lack of knowledge impede their willingness to take action, make financial donations or assist with fundraising. Excitingly, this means that as they explore more resources and accelerate their giving, they may be able to drive even greater impact by pursuing a combination of techniques and vehicles to drive optimal outcomes.

In concert, these three qualities – a natural instinct for advocacy, an early start and a bias for action – illustrate a portrait of aware, engaged and values-driven givers who have the potential to effect real change in their lifetimes.

While there may be some differences, our research also revealed that many of their motivations and behaviors are similar to what we see in Gen Xers and Boomers. These four core characteristics are remarkably consistent across all generations of giving.

• Family fuels inspiration and action. All generations give credit for their charitable impulses to having grown up in families that give back. For Gen Z and Millennials in particular, family is one of their primary drivers for getting involved in giving.
• More financial resources yield bigger gifts. Monetary donations are more common among higher earners, college graduates, employed individuals and older members of each generation. And higher earners donate greater amounts.
• They differ based on gender. Women are more likely than men to want to make an impactful change to a cause and demonstrate their family’s values, while men are more likely than women to want to create or continue a legacy.
• Giving comes in many forms. Financial contributions are critical, and nonprofits need them to continue operating, but there are many ways to give and most charitably-inclined individuals tend to combine a variety of activities to give back to their communities and the causes they care about. Beyond cash or assets, the most common approaches are donating items, volunteering time, fundraising and sharing expertise and knowledge.

The philanthropic community should carefully consider how to engage with the next generation based on their unique experiences, perspectives and preferences around charitable giving. The good news is that private foundations, financial advisors and nonprofits won’t be starting from scratch. There are still many similarities between younger and older generations, which can help them find common ground to get aligned around how, why and where to give. These insights create opportunities to bring generations together to pool capital and intellectual resources, and spark more difficult conversations that might challenge traditional modes of thinking. Together, these two truths can propel charitable giving into the future. Growing pains are expected, and so too is a vibrant and forward-thinking culture of giving that drives bigger and more impactful outcomes.

For more insights, view the full report.

Questions in the meantime?
We’re here to help! Schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

The post How NextGen Givers Are – And Aren’t – So Different appeared first on Foundation Source.

Total estimated charitable giving in the United States reached just over $557 billion. What’s more, total giving grew by 1.9 percent between 2022 and 2023 in current dollars, but declined 2.1 percent when adjusted for inflation.

Giving by individuals totaled just over an estimated $374 billion, growing 1.6 percent in 2023. This is a decline of 2.4 percent when adjusted for inflation.

Foundation Giving

Charitable giving by foundations also grew—in this case by 1.7 percent, reaching an estimated total of just over $103 billion in 2023. When adjusted for inflation, this represented a decline of 2.3 percent.

Giving by foundations includes grants made by independent, community and operating foundations, and amounted to 19 percent of all gifts made in 2023. (Giving by individuals represented the largest contribution by source at 67 percent.)

Current-dollar grantmaking by foundations increased 14.5 percent between 2021 and 2022. The cumulative change in current-dollar giving by foundations between 2021 and 2023 is 16.4 percent.
In our 2023 Report on Private Philanthropy, we had similar findings of increased giving by foundations. Collectively, the 980 foundations in our study made a total of 31,373 grants in 2022 representing $865 million in charitable aid. This is a 7.1% increase in grants and 14.7% increase in dollars granted over the prior year. Foundations also gave more than the minimum required distribution of 5% as they had in prior years with an average of 6.6% in assets in 2022.

Who Received The Most Contributions?

Religious organizations received the largest share of charitable dollars in 2023, at 24 percent of total giving. Human services organizations made up the second-largest portion in total gifts received at 14 percent of the total in 2023.

Interestingly as reported in our 2023 study, the National Taxonomy of Exempt Entities (NTEE) category capturing the most funding from foundations in 2022 was public/societal benefit at 19.5 percent of all grant dollars. Education was the second-largest category at 18.1 percent and human services rounded out the top three at 12.9 percent for the same timeframe.

What’s Ahead For Giving?

While giving may not have been able to keep up (or outpace) the higher-than-average inflation rate of 4.1 percent, the future looks bright for giving. The growth in 2023’s total giving may indicate positive signs throughout the sector—and we’ll be here doing our part to serve and support philanthropists and their professional teams.

Want More Insights On Giving Trends?
Check out our infographic on What’s Next For Funders? where we asked our private foundation clients how they plan to approach their philanthropy this year.

Want to learn more about the ways we support philanthropists with private foundations?
Schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

The post Key Takeaways For Foundations From Giving USA’s 2024 Report on Philanthropy appeared first on Foundation Source.

Why So Popular?
Given today’s societal emphasis on diversity, equity and inclusion, donors are drawn to the collaborative and democratic nature of collective giving. All members of a giving circle engage in deciding what causes to support. They work together to create community connections and assess critical needs, all the with the aim of achieving maximum charitable impact.

Whereas traditional philanthropy is more “top down” in structure, with the more substantial charitable contributions coming from private foundations and wealthy donors, collective giving shifts the philanthropy landscape to one in which donors of all income levels can make equally significant donations by combining their resources. In fact, the average donation per giving circle member is $1,000. While this amount can certainly make some impact on its own, consider what 10, 20 or 50 times more can do. As Philanthropy Together states, “collective giving is democratizing and diversifying philanthropy.”

Take, for example, Impact Fairfield, a giving circle we connected with. Based on the Impact 100 model of collective giving, the circle’s goal when it started in 2015 was to gather at least 100 women in the area to pool their contributions to make significant philanthropic investments in local nonprofits. Each woman would donate $1,000, allowing the group to pool its contributions and make $100,000 grants to select local nonprofits each year.

Today, Impact Fairfield has grown to about 260 members, enabling it to make two $100,000 awards each year, plus a donation for general operating expenses to each of the finalists who had applied for the funding. And many of the members do far more than give. About half also vet the funding proposals, review audited tax returns and conduct site visits to learn about the applicant organizations. Members who want to be involved can increase their awareness of civic issues, volunteer and even serve on the circle’s board.

Collective Giving Close Up
Here’s a closer look at collective giving and its growing appeal. The following are key findings of the Philanthropy Together research that confirm the benefits of collective giving:

• It increases political advocacy and civic engagement. 59% of the giving circles studied said that participating in collective giving prompted them to advocate more for issues they deem important. It also increased their sense of civic responsibility and activism.
• It improves members’ sense of agency and belonging. 77% said collective giving made them more confident that their opinions on social issues mattered, while 91% said it increased their sense of belonging to a community. This is particularly beneficial given the increased loneliness and isolation that Americans have felt since the COVID-19 pandemic. Being part of a giving circle can help people feel more connected to their community and provide an encouraging platform for addressing issues that matter to them.
• It helps donors learn. Collective giving groups heighten members’ understanding of diversity, equity and inclusion. 77% said they learned more about these issues from their giving circle participation.

Additionally, collective giving circles are:

• Predominantly led by women. 84% of the giving circles studied said more than half of their members identify as women and 60% of the groups were entirely comprised of women. (This isn’t surprising, considering the industry-wide trends that show women are drawn to philanthropy.)
• Locally focused. The organizations supported are primarily small community-based nonprofits.
• Trust-based. Collective giving typically models trust-based philanthropy in which donations are broadly unrestricted, meaning funders build relationships with their grantees to understand their needs and rely on their expertise to use the funding most impactfully.
• Impact-driven. Giving circles want to effect long-lasting, positive change in their communities. Rather than fulfilling a specific one-time need, such as providing X number of meals to a soup kitchen, they look beyond the meals to address the larger problem of hunger. They aim to strengthen the organizations within their communities that will ensure long-term impact.

With the rise of collective giving, it’s encouraging to see the philanthropy landscape become more inclusive, whereby a greater and more diverse range of people consider themselves “philanthropists.” Philanthropy Today says 87% of its research respondents view themselves as such – yet, interestingly, many of them said they didn’t self-identify in this manner until joining a giving circle, despite having given previously. Kudos, therefore, to collective giving for empowering donors to do more with their giving. The philanthropic sector – and the world – will change for the better.

Have a Question?
Schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

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“While tailwinds from the market downturn and economic instability took a toll on assets, foundations remained committed to their missions and our clients gave nearly 52,000 grants totaling more than $1.5 billion in 2023,” said Gillian Howell, head of client advisory solutions. “We are encouraged by their generosity but also recognize that creating a better world is an uphill battle that requires unrelenting effort and discipline from those who have the power to effect positive, lasting change.”

Check out the highlights from our 2024 Client Survey in our infographic>>

If you want to learn more about the giving and investing trends of our clients, check out our 2023 Report on Private Philanthropy.

Want to Learn More?
Whether you’re an existing foundation looking for an easier, better way to run your foundation’s operations or you’re looking to start a foundation, please contact our phenomenal team of philanthropic experts. We’re always here to help! Together, let’s #begiving.

The post 2 Trends Funders Are Focusing On: Results From Our 2024 Client Survey appeared first on Foundation Source.

When Grants Were Made
As in previous years, foundation grantmaking activity in 2022 reached its highest point at the end of the calendar year. In both 2021 and 2022, more than one-third of all grants were awarded in the “giving season” of November and December—most likely because these months encompass several holidays and occur just before the end of the fiscal tax year.
Additionally, as we’ve seen in most previous reports, we observed evidence of a “summer bump” in grantmaking activity in June 2022. This is likely due to:

• foundations revisiting their charitable goals at mid-year
• some foundations having fiscal tax years ending in June. In March and April of 2022, there was a year-over-year increase in grant volume due in part to relief efforts following Russia’s invasion of Ukraine in late February 2022.

So, what does the future bring for private foundations? While the only constant is change, we believe that charitable giving is well poised for 2024 based on the findings in our full report. We’ll continue to watch and analyze this space with curiosity and encourage you to subscribe to our blog as we’ll be reporting our findings and timely updates along the way.

Questions About This Report Or Want to Learn More?
Whether you’re looking for support for your existing foundation or want to create a private foundation, our philanthropic specialists are here to help. To learn more, schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

The post Giving Trends by Sector: 2023 Report On Private Philanthropy appeared first on Foundation Source.

Grantmaking
Collectively, the 980 private foundations in our study made 1,553 more grants and gave nearly $111 million more in 2022 than 2021.

Total Value of Grants
The total value of all grants awarded increased from $754 million representing 29,280 grants in 2021 to $865 million representing 31,373 grants in 2022. This increase occurred across all foundation sizes, particularly by mid-size and larger foundations: Total grant dollars awarded by smaller foundations increased 10.2%; mid-size by 20.4%; and larger by 13.6%.

This uptick is in line with the increase in foundation assets in 2021, as a foundation’s payout (distribution) requirement is calculated on the prior year’s assets. As such, increased payout requirements may be a factor in the increase in the total amount granted.

Average Size of Grants
The average size of grants also increased across all segments, with mid-size foundations jumping the most from an average of $27,000 to $32,000. Median grant size remained constant year-over-year for smaller and mid-size foundations, while decreasing from around $13,000 to $10,000 among larger foundations. A foundation’s annual payout requirement is calculated on the prior year’s assets. Given the strong market performance in 2021, many foundations experienced an uptick in assets which translates to an increased payout requirement in 2022. The approach for managing this increase varies by foundation; some make more grants, some make larger grants, some will do both and others meet their higher payout requirement with carryovers from prior years.

Average Number of Grants
The average number of grants awarded by all foundations in the sample increased from 31 in 2021 to 33 in 2022, though the greatest increase occurred among larger foundations where the average number of grants increased from 74 to 80. Increased payout requirements may be a factor in the increase in the number of grants.

On average in 2022, the foundations in our study made 33 grants totaling $903,000. Collectively they granted $865 million ($111 million more than in 2021) to 17,544 nonprofit organizations.

Payout Requirement
Foundations are required to disburse an amount of charitable funding each year equal to roughly 5% of their net assets of the previous year, known as the “minimum distribution requirement” (MDR). It is often assumed that most private foundations will curtail their charitable activities to stay at or near the 5% minimum requirement in order to sustain operations as long as possible. In 2022, however, the foundations in our study collectively distributed an average of 6.6% of their assets for charitable purposes—exceeding the MDR by more than 1.5%. This finding is consistent with previous reports we’ve published using different samples of client foundations.

How Much Foundations Gave Relative to Their Assets
Over more than two decades of working with foundations of all sizes, we have consistently seen their charitable distributions exceed the 5% minimum distribution requirement, and this year was no different. Historically, the smallest foundations have been the most generous relative to their asset size, and they were the leaders again in 2022, distributing 7.7% of their total assets, down from 9% in 2021.

Meanwhile, mid-size and larger foundations distributed 6.1% and 6.5% of their assets, also down from 6.9% and 7%, respectively. Overall, in 2022, foundations distributed an average of 6.6% of their assets, down from 7.3% in 2021. These year-over-year decreases are likely due to foundations responding in real-time to the challenging economic conditions of 2022.

The foundations in our study have a total of nearly $1.1 billion in excess grant carry-overs for the 5-year period from 2018-2022, as a result of consistently giving above the MDR.

Giving by Charitable Category
The National Taxonomy of Exempt Entities (NTEE) category capturing the most funding from foundations in 2022 was Public/Societal Benefit at 19.5% of all grant dollars, up from 17.5% in 2021. Education was the second largest category at 18.1% (down from 19.9%) and Human Services rounded out the top three at 12.9% (down from 13.9%) for the same timeframe.

The other category that experienced a shift of at least 1% year-over-year was Arts, Culture & Humanities, which decreased from 7.0% to 5.8%. All other NTEE categories saw just minor changes in total funding from foundations in 2021 to 2022. Given the increase in grant dollars to Public/Societal Benefit organizations, it’s worth noting that the category encompasses the following subsectors: Civil Rights, Social Action & Advocacy; Community Improvement & Capacity Building; Philanthropy, Voluntarism & Grantmaking Foundations; Science & Technology; Social Science; and Public & Societal Benefit.

Of note, the largest percentage of 2022 grant dollars from foundations, or 20.3%, went to Unknown or Unclassified organizations. As of June 2023, 33% of the 1,854,097 verified public charities in the U.S. did not have NTEE codes which represents a growing blind spot in the philanthropic sector.

While we don’t have the full picture yet for 2023, we’re buoyed by the momentum we’ve witnessed amongst our clients so far and believe it bodes well for 2024 charitable giving.  We’ll be watching this space closely and will report back. In the meantime, check out our full report for more insights on last year’s philanthropic trends.

Questions About This Report Or Want to Learn More?
Whether you’re looking for support for your existing foundation or want to create a private foundation, our philanthropic specialists are here to help. To learn more, schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

The post Giving Trends: 2023 Report on Private Philanthropy appeared first on Foundation Source.

• Tips for How and When to Donate During a Crisis: provides a guide to navigating the giving season in a year filled with natural disasters and humanitarian crises, suggesting strategies for balancing immediate and longer-term support.
• 5 Giving Strategies for Sophisticated Investors: details five creative strategies that the savviest philanthropists use, often with guidance from professional advisors, to achieve tax-wise social impact.
• Philanthropic Community: Advice From Your Peers – this special compilation asks foundation leaders for the piece of advice they most want to share with other philanthropists to find meaning and success in giving.
• Be Giving: a new podcast series that explores the incredible impact charitable giving can have on individuals, communities and the world at large through compelling conversations with notable guests and experts. The podcast is available through Apple, Google, Spotify or the web.

Check out the 2023 full guide.

Want to learn more about the ways we support private foundations?
Looking for an easier way to manage a foundation or want to start a foundation? Our philanthropic specialists are here to help! To learn more, schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

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