New national data show funders have increased their flexible, multiyear funding and deepened their equity commitments, but gaps between values and practice remain.
Grantmakers for Effective Organizations (GEO) today released its 2025 National Study of Philanthropic Practice, the only survey of all staffed foundations in the U.S. The study, conducted in partnership with Strength in Numbers Consulting Group, offers a comprehensive look at how philanthropy is shifting to better serve nonprofits and communities.
Drawing on responses from 765 grantmakers, this report shows progress toward equitable, responsive approaches to grantmaking, while underscoring that philanthropy still has work to do to align commitments with daily practice.
Study highlights include:
- Equity is central to grantmaking strategy. Seventy-four percent of grantmakers report that diversity, equity, and inclusion are somewhat or very central to their organization’s strategy.
- Commitment to equity aligns with effective practice. Funders who say diversity, equity, and inclusion are very central are more likely to involve focus populations in decision-making and engage in participatory grantmaking.
- Grantmakers are shifting power through participatory grantmaking. Forty-two percent of funders engage in participatory grantmaking.
- Flexible and multiyear funding are gaining momentum. Eighty-seven percent of grantmakers now provide multiyear funding, and median general operating support has risen to 38 percent of grantmaking budgets after nearly two decades at 20 percent.
- In practice, the 5 percent payout is no longer the floor. More than half of endowed foundations spend above 5 percent of their assets annually.
- Capacity-building support is slipping. Only 77 percent of grantmakers provide capacity-building support—down from 86 percent in 2017—even as nonprofit needs continue to grow.
- Evaluation requirements are outpacing support. Eighty percent of funders require grantees to conduct evaluations, yet 38 percent do not provide funding to cover the cost.
“The 2025 National Study of Philanthropic Practice shows that when grantmakers focus on our common humanity, everything else in our practice improves.”
“More than 25 years of practice show us that the most effective grantmaking interrupts inequities,” said Marcus Walton, GEO President and CEO. “The 2025 National Study of Philanthropic Practice shows that when grantmakers focus on our common humanity, everything else in our practice improves — our strategies become more responsive, our relationships with nonprofits deepen, and our collective impact expands. Grantmaking is heading in the right direction, but there is still work ahead. Now is the time to double down on the equitable practices that we know support thriving nonprofits and communities.”
Since 2008, GEO’s National Study of Philanthropic Practice has tracked sector-wide trends in grantmaking to help funders learn, adapt and improve. Earlier studies were released in 2017, 2011, and 2008.
GEO would like to thank the interviewees and story contributors, advisory group members, peer reviewers, and supporters who made the 2025 study possible.
Read the 2025 National Study of Philanthropic Practice at: https://grantmakingstudy2025.geofunders.org/