Record-High Endowments Won’t Translate to Foundation Generosity
Even as assets soar, nonprofits are unlikely to benefit.
September 19, 2025
To the Editor:
I’m glad to see that as foundation assets reach record highs; one expert expects grant making to rise as well — “Foundation Coffers Are Full As Pressure Mounts to Increase Giving,” (August 27). But I’m not optimistic that donations will increase beyond the mandated 5 percent payout or keep pace with endowment growth.
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To the Editor:
I’m glad to see that as foundation assets reach record highs, one expert expects grant making to rise as well — “Foundation Coffers Are Full As Pressure Mounts to Increase Giving,” (August 27). But I’m not optimistic that donations will increase beyond the mandated 5 percent payout or keep pace with endowment growth.
Illustration by Elizabeth Haugh; iStock
Having worked as a nonprofit fundraiser for 30 years, I’m bullish about fundraising from individual donors, but bearish about foundations. I’ve seen firsthand that foundations often adopt a calcified posture, which means their giving remains relatively stagnant. Most tax-exempt foundation assets grow without serving any purpose, charitable or otherwise, beyond adding to the organization’s endowment.
When working with foundations, nonprofits also assume significant soft costs that sap their resources: intense competition for funds, long decision times, burdensome reporting, and opaque rejections via form letters. Due to these common hurdles, I doubt that nonprofits will see much benefit from soaring grant-maker assets, even if payouts increase.
There are exceptions, of course. Chuck Feeney, the founder of the Atlantic Philanthropies, sunsetted the foundation before he died, ensuring most of his substantial fortune went towards charitable causes rather than accumulating forever. If more foundations followed that lead, I’d change my tune. Until then, foundations will remain a waste of fundraisers’ time and a false signal of generosity.
