After answering the call to support pandemic relief and racial equity initiatives in 2020, foundations increased their giving even more in 2021, a study from Foundation Source finds. 

According to the 2022 Report on Private Philanthropy (31 pages PDF), foundations gave abundantly in 2021 as they continued to assist with pandemic-related recovery efforts, responded to natural disasters and humanitarian crises, and revisited their core pre-pandemic charitable missions. The nearly 1,000 U.S.-based private and family foundations with assets between $1 million and $500 million surveyed awarded a total of $689 million in 2021, $40 million more than in 2020. The increase was more pronounced among larger foundations—those with assets totaling between $50 million and $500 million—through which giving increased nearly 21 percent. The study also found that private foundation endowments experienced double-digit growth in both 2020 and 2021, and that grants to individuals, which foundations used extensively during the crises in 2020, decreased by 64 percent in 2021. 

“While some of our data indicates a return to pre-pandemic behaviors, the spike in giving over the last year could be a signal that the shocks of 2020 have had a lasting impact and set dedicated philanthropists on a new trajectory to address needs in a less reactive but increasingly generous way,” said Foundation Source president and CEO Sunil Garga. “As the market winds have shifted again in 2022, it remains to be seen what will take place next, but foundations will likely rise to the occasion. More than any other charitable giving vehicle, foundations are equipped with a powerful and versatile philanthropic toolkit for creatively solving problems and effecting change.” 

(Photo credit: Getty Images/fizke)