Study: Family Foundations’ Assets Soar
Just 11% prioritize faith-based giving
While high inflation and a slow economic recovery strain Americans’ wallets, the post-pandemic years have been a boon for family foundations.
A new survey conducted by the National Center for Family Philanthropy suggests that since 2020, the percentage of foundations with assets of $10 million or more has nearly doubled. The study shows the percentage rising from 26% to 47% in just five years, also surpassing the 30% that had $10 million or more in assets in 2015.
The authors of the report, titled Trends 2025, suggest possible economic reasons for this growth.
“Since the Trends study began, we have seen significant growth in the US stock market and may have begun to see effects of the great wealth transfer,” the report reads. “These events may explain the growth in asset sizes during the past decade, particularly regarding foundations with assets between $10 million and $500 million.”
Foundations often hold investments in the stock market, which has exceeded expectations even as other areas of the economy continue to struggle. The “great wealth transfer” refers to the intergenerational exchange of wealth that is taking place as baby boomers reach the end of life.
Bolstered by growing assets, foundations have increased their giving. A full 71% of surveyed family foundations reported spending more than the legally required 5% of their assets, a significant increase over 2020 (56%) and 2015 (55%).
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However, the survey found that while “family foundations’ asset sizes have increased…there has only been a small increase in payout rates, leaving a great deal of inactive capital.”
As for how foundations might seek to spend that inactive capital, the report noted that just 11% of the surveyed organizations are focused on “faith-based giving.” That is 1% less than those who pursue “racial/ethnic/cultural” giving, a focus that has tripled since 2020.
Overall, education remains the most widely held focus area for family foundations, but other areas have seen significant shifts. While interest in “environment, sustainability, climate” and “human rights, civil liberties, civil rights” has skyrocketed, fewer foundations indicated a focus on fighting poverty or helping people get jobs. The “poverty, hunger, homelessness” category plummeted from 27% to 14% in just five years, suggesting a widening gap that Christian ministries might step in to fill.
One potential area of concern for nonprofits is that fewer foundations are providing grants for general operations (66%, compared with 83% in 2015); although, according to the report, “one-fifth of respondents do plan to initiate or increase their general operating grants in the future.”
More promisingly, while foundations reported putting more effort into educating themselves on issues and projects they support, they also indicated they have reduced the paperwork burden on grantees.
“Compared to 2020 and 2015, foundations have reduced grantee requirements, streamlined applications and reporting, and conducted more research into prospective grantees before requesting proposals,” the report noted.
The survey also uncovered growing intergenerational conflict within families and declining engagement by younger individuals, putting the future of some foundations into question. “Conflicting political/social/religious views between generations” doubled since 2020, as did views on wealth, while differences of opinion on racial equity nearly tripled.
The Chronicle of Philanthropy cited one expert’s view that the younger generation leans toward a different approach to philanthropy. Avery Fontaine, who heads Philanthropy & Impact and the Institute for Family Success at PNC Private Bank Hawthorn, said the young are more likely to want to volunteer and have first-hand experiences with a grantee before making a grant.
This finding dovetails with a Barna report from last year that indicated Gen Z is far more likely than older generations to spend time volunteering (although stage-of-life circumstances such as availability and mandatory volunteer hours may contribute to the difference). The study also showed that about half of pastors are “very concerned” that younger Christians are not giving tithes and offerings to their churches—possibly pointing to a broader shift in attitudes toward charitable giving.
For the Trends 2025 study, 524 family foundations with at least $2 million in assets and $100,000 in total giving were selected from Candid’s national database.
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