US foundation giving has failed to keep pace with the deepening crisis facing non-profit organisations, despite charities confronting rising demand and sharp reductions in federal funding. Research cited in the analysis found that giving by foundations rose by only 3% in inflation-adjusted terms in 2025, compared with a 15.6% increase during the pandemic in 2020.
The pressure has intensified since January 2025, as the Trump administration and allies in Congress froze federal funds, terminated grants, investigated non-profits and linked government funding to political priorities.
Organisations providing food, housing, domestic violence support and environmental services have been affected, with food banks rationing supplies, shelters closing and some charities reducing services or shutting down. Non-profit leaders have also reported high levels of burnout, layoffs and growing financial insecurity.
Foundations hold $1.8 trillion in charitable assets
Foundations control about $1.8 trillion (£1.3 trillion) in charitable assets. Their grants accounted for $117 billion of total US charitable giving of $617 billion in 2025, or almost one in every five dollars donated, according to Giving USA.
Large endowed foundations could increase their support during a crisis because of the scale of their assets and their long-term investment horizons. However, a survey conducted in May and June found that 65% of independent foundations described their payout rate as “typical”, with many continuing to spend the 5% minimum required by the Internal Revenue Service.
The findings suggest that most foundations have not used increased grantmaking as their main response, even though their endowments have generally grown in recent years amid a strong stock market.
Only 8% of foundation chief executives surveyed said the sector’s response to the current situation had been “very effective”. Just 12% described their own foundation’s response in those terms.
Most respondents cited risk aversion, with many saying their boards had prevented them from taking more substantial action. Other reasons included concerns about preserving endowments for future generations and doubts about whether foundations could make a significant difference.
Some foundation leaders also argued that the crisis could expose weaker non-profits. But the analysis said the disruption was affecting established and effective organisations that provide essential services, protect natural habitats and support arts and culture in their communities.
A number of foundations have increased their giving. Marguerite Casey, MacArthur and Robert Wood Johnson were cited for raising funding levels and speaking publicly in support of the non-profit sector, while Skillman in Detroit and Mary Reynolds Babcock in North Carolina were highlighted for their regional responses.
Those examples were described as exceptions rather than the norm. With federal support substantially reduced and demand for services increasing, the analysis called on foundations and their boards to release more of their assets through grants to non-profits and the communities they serve.
