Foundation Assets at All Time High
Grant makers promise to distribute enough money to keep up with a lucrative year of investments
Foundation assets approach $1.7 trillion in 2025 as grant makers promise to increase their grant making in light of federal cuts.
The current $1.68 trillion total is up from $1.62 trillion at the end of 2024, and up 15% from the $1.46 trillion at the end of 2023.
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The assets doubled during the past decade, according to The NonProfit Times. “The asset growth has been fueled by a mix of investment returns and incoming contributions, accounting for about 75% and 25% of the increase respectively.”
Despite the overall upward trend, foundation assets dropped significantly in 2022 due to pandemic volatility. According to The Chronicle of Philanthropy, 2023 and 2024 signaled stabilization with two years in a row of double digit growth (14% and 11% in community foundation assets, respectively).
Foundations are legally mandated to pay out 5% of assets each year. FoundationMark CEO John Seitz says the increase in assets will result in increased giving, even if foundations only abide by the 5% requirement.
However, some foundations have promised to increase their grant-making beyond the 5% requirement this year. Freedom Together Foundation is doubling payouts to 10% of assets. The Weissberg Foundation will also pay out 10%. The John D. and Catherine T. MacArthur Foundation will pay out 6%.
Several philanthropy organizations have called on funders to help fill funding gaps created by federal budget cuts. As of April, the petition had 79 signers, 10 of whom declined to identify themselves publicly.
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“While private philanthropy cannot possibly fill all the federal funding gaps,” says the call to action from the “Meet the Moment” effort, “it can play a key role in supporting the stability, resilience, and reimagination of the social sector. We invite funders to commit to courageous, trust-based action in support of our nonprofit partners — without whom our work would not be possible.”
The petition includes commitments to, among other things, increase grant making for the next four years, streamline processes, and offer multi-year funding.
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