Grantmaking Foundations NAICS 813211
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Industry Summary
The 12,300 grantmaking foundations in the US award grants from trust funds to support charitable activities. Top areas of focus for giving include healthcare, education, human services, public affairs, arts and culture, environmental causes and animals, and international affairs.
Market Risk Challenges Investments
Fluctuations in interest rates, corporate earnings, and global financial markets can create a challenging investment environment for foundations.
Facing Public Scrutiny
Grantmaking foundations, particularly public foundations, face scrutiny from the public to provide transparency.
Recent Developments
Jan 5, 2026 - Demand may Increase As HUD Funding Decreases
- Housing and shelter organizations are the nonprofits most likely to depend on government grants for 50% or more of their revenue, according to Candid, an information service specializing in reporting on US nonprofit companies. The US Department of Housing and Urban Development (HUD) will have its budget cut by 44% for 2026, and many housing and shelter organizations have told Candid that they will feel the impact in the form of grand reductions. Candid has found that 23% of housing nonprofits could run out of funding within three months without government support.
- There are very few resources available for capital grantmaking, the kind of philanthropy that funds construction, renovation, and equipment purchases for nonprofits, according to Havaca Ganguly, executive director of the Middendorf Foundation. Capital grantmaking is often considered a foundational pillar of philanthropic giving, according to Ganguly. Nonprofits that successfully manage large building or renovation projects often have specialized board members, staff with relevant expertise, or access to external support through funding or services donated free of charge. These would include project managers who represent the nonprofit’s interests during construction, architects, and developers.
- Billionaires have publicly donated or pledged to give about $185 billion since 2015, according to Altrata, according to the Wall Street Journal. Top causes include education and medical research. Billionaires gave $90 billion to those two in the past 10 years. One of the most popular recipients outside of education and medical research is the Central Park Conservancy in New York, which received donations from 89 billionaires worth about $100 million. Johns Hopkins University received $7.5 billion from close to 30 billionaires, but most of it came from Michael Bloomberg, who gave more than $5 billion.
- Grantmaking foundation industry employment increased slightly and average wages for nonsupervisory employees decreased slightly during the first seven months of 2025, according to the US Bureau of Labor Statistics. Grantmaking foundation industry sales are forecast to grow at a 5.85% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Foundations generate revenue from endowment returns and donations.
Industry Revenue
Grantmaking Foundations
Industry Structure
Industry size & Structure
The average grantmaking foundation operates out of a single location, employs about 10 workers, and generates $10.6 million annually.
- According to the US government, the grantmaking foundation industry consists of about 12,300 firms that employ 118,200 workers and generates $130.4 billion in revenue.
- The 238 US foundations surveyed in 2019 received over $9.4 billion in gifts, distributed nearly $8.4 billion to organizations and individuals, and managed over $94.1 billion in assets, according to Candid and the Columbus Survey.
- The top 50 organizations account for about 51% of industry revenue.
- Large organizations include the Bill and Melinda Gates Foundation, the Ford Foundation, and the Silicon Valley Community Foundation (SVCF).
- Most foundations have less than $50 million in assets.
Industry Forecast
Industry Forecast
Grantmaking Foundations Industry Growth
Source: Vertical IQ and Inforum
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