Foundations anticipate and are preparing for a decrease in charitable giving in 2023, a survey by Candid finds. 

In the first blog post in a three-part series, Candid reported the findings of its annual Foundation Giving Forecast Survey, which provides estimates and helps inform the Giving USA annual report on philanthropy. For the first time in seven years, the proportion of foundations anticipating decreases in giving (27 percent) exceeded those expecting increases (23 percent). The survey also found that among the 557 respondents that provided funding data, cumulative giving increased from $25.3 billion to $26.1 billion. The 3 percent annual increase is much lower than the 12 percent increase in 2021 and 24 percent increase in 2020 (all figures are unadjusted for inflation). 

The average payout among 349 independent foundations, which account for most foundation grant dollars, was 6.8 percent, similar to last year’s survey’s average. Thirty percent of those groups reported that their payout increased, in part because of market performance and large one-time or multiyear grants. However, independent foundations increased their giving by less than 2 percent, while the inflation rate was 8 percent in 2022.

“Foundations are sober about their giving this year, more so than in the past,” researcher specialist Sarina Dayal and director of research Grace Sato wrote: “Pandemic-level giving has slowed and has not kept pace with inflation. Yet, inflation has put pressure on nonprofit budgets and affected their ability to maintain services. Nonprofits will continue to need philanthropy to respond flexibly and generously to the needs of this moment.”

(Photo credit: SDI Productions)