Foundation Source says its client foundations raised grants 15.1% in 2025, to $1.14 billion

Private foundations that use Foundation Source to manage their grantmaking gave $1.14 billion in 2025, up 15.1% from $990.5 million in 2024, the firm said on October 14 in its 2026 Report on Private Philanthropy. The number of grants rose 5.3%, to 40,210.

Who is in the sample

The report covers 1,237 private foundations with assets between $1 million and $1 billion, using data for 2024 and 2025. They are Foundation Source's own clients, not a cross-section of all U.S. foundations, so the results describe that group rather than the whole field. Grant dollars at the larger foundations in the sample rose 22.6%. Combined assets grew about 11%, to $5.7 billion from $5.1 billion.

Payout well above the minimum

The foundations distributed an average of 7.1% of assets in both years, above the 5% minimum private foundations must pay out each year. The smallest group, with $1 million to $10 million in assets, paid out 9.9%.

Education received the largest share of grant dollars, 19.0%, followed by public and societal benefit at 16.5% and human services at 13.7%. Health had the biggest gain, up 2.6 percentage points to 10.2%. Human services received the most individual grants, 7,785.

Most grants carry restrictions

About 60% of grants supported designated programs and 40% provided general operating support. The preference for designated grants rises with size: larger foundations designated 70% of their grants, while smaller foundations split their giving almost evenly, the firm said.

Gillian Howell, Foundation Source's senior vice president of client success, said, "The foundations in our study truly stepped up to meet the moment." Chief executive Joseph Mrak III noted that more than 40% of grants are typically made in the fourth quarter and said "now is the time for families and their advisors to plan with intention."

What nonprofits can do with it

In our view, two findings are useful to a development director this fall. The fourth quarter is when much of this money moves, and small family foundations pay out the most relative to size. A short, specific request to a small foundation that already knows your work may land better now than in the spring.

The restricted share matters if your budget depends on flexible money. For what a designated gift binds you to once accepted, see a restricted gift is a promise. For a broader look at foundation data, see democracy grants as a share of foundation giving. This is a report from a firm that sells services to foundations, and we have not seen its underlying data.