Foundation Giving Is Growing, Is Your Nonprofit Ready?

Foundations Are the 2nd-Largest Source of Contributions in the U.S.

The latest annual report from Giving USA offers encouraging news for nonprofit organizations seeking funding. Americans donated a record $617.2 billion to charitable causes in 2025, representing 5.7% growth in current dollars (3.0% adjusted for inflation) over the previous year despite ongoing economic uncertainty. The report confirms what many fundraising professionals have experienced firsthand: philanthropy remains strong, and foundations continue to play an increasingly important role in the charitable landscape.

Individual donors remain the largest source of charitable giving, contributing approximately $394 billion and accounting for 64% of all charitable contributions. However, foundations have firmly established themselves as the second-largest source of philanthropy in the United States, representing nearly one-fifth of all charitable giving. Just a generation ago, individual donors accounted for roughly 80% of all giving. Today, that percentage has fallen while foundation giving has steadily expanded.

For nonprofit leaders, this trend should not be overlooked. The continued growth of foundation giving means there are more grant dollars available than ever before. While individual donor relationships remain the foundation of a healthy fundraising program, grant funding has become an increasingly important component of a diversified revenue strategy.

Why Foundation Giving Keeps Growing

One of the primary reasons for this growth is the remarkable performance of the financial markets since the Great Recession. Since 2009, the S&P 500 has experienced substantial long-term growth, increasing the value of foundation endowments, family foundations, and charitable investment accounts. The Giving USA report specifically notes that strong financial markets continue to be a significant driver of charitable giving. When assets appreciate, foundations often have greater resources available for grantmaking.

Another contributor to this trend is the rapid growth of donor-advised funds (DAFs). Many philanthropists are choosing to establish charitable accounts that allow them to invest assets, receive immediate tax benefits, and recommend grants to nonprofits over time. As donor-advised fund assets have expanded, so has the overall pool of philanthropic capital available to support nonprofit missions. Many community foundations and grantmaking organizations have experienced significant growth because of these vehicles, further strengthening the foundation sector.

What Does This Mean for Your Organization?

First, grants should remain an important part of your fundraising strategy. The data suggests that foundation funding is not a temporary trend but part of a long-term shift in American philanthropy.

Second, relationship-building remains essential. Foundations are managed by people. Just like major donors, funders want to invest in organizations they trust and missions they understand. The strongest grant programs combine strong proposals with intentional stewardship and ongoing communication.

Finally, nonprofits must become more strategic about identifying potential funders. Foundations tend to support specific mission areas such as education, healthcare, public safety, housing, workforce development, and human services. Finding funders that already support organizations similar to yours can dramatically improve your chances of success.

How GrantSnag Helps

That's why the Peer Search feature within GrantSnag.com is so valuable. Rather than starting with a list of thousands of foundations, nonprofits can identify funders already investing in organizations with similar missions and programs. The result is a more focused grant strategy, stronger funder alignment, and a more efficient path to securing funding.

The latest Giving USA report tells a powerful story. Americans continue to give generously. Foundation resources continue to grow. And for nonprofits willing to build relationships and pursue grants strategically, the opportunity to secure funding has never been greater.