The National Center for Family Philanthropy (NCFP) recently released its third benchmark survey, offering insights into how family foundations have evolved in their practices and priorities from 2015 to 2025. This data reveals notable shifts in the field of family philanthropy and also identifies areas where change has been slow or inconsistent.
1. A Shift Toward Community-Centered Giving
Family foundations are increasingly moving from a donor-centric approach to a community-focused one. In 2025, most foundations reported that their giving is guided more by their philanthropic mission and community needs than by historical funding patterns or individual board member interests. This shift suggests a broader commitment to addressing pressing issues affecting communities, such as climate change, racial equity, and social justice.
2. Reduced Requirements for Grantees
One positive trend is the reduction in grantee requirements. Foundations are increasingly streamlining applications and reporting processes, which helps to alleviate administrative burdens on nonprofits. Additionally, more foundations are researching potential grantees before requesting proposals, fostering a more supportive relationship with grantee organizations.
3. Commitment to Learning and Reflection
The survey indicates that family foundations are embracing a learning mindset. Nearly all foundations report engaging in activities that help them understand new ideas and approaches. For example, the number of foundations identifying as “active learning institutions” has risen by 14 percentage points since 2020. Many also report integrating grantee and community feedback into their decision-making.
4. Generational Dynamics and Participation Challenges
Despite efforts to engage younger generations, family foundations are seeing a decline in participation among younger family members. Many report that younger generations face time constraints, while some foundations note a growing value divide around racial equity and wealth. Families are encouraged to explore new ways to bridge these generational gaps to ensure a seamless transition of leadership and legacy.
5. Increasing Payouts but Inconsistent Support for Operating Grants
While foundations have been increasing their payouts, the percentage of foundations offering general operating or unrestricted grants has declined over the past decade. General operating support is essential for nonprofit sustainability, so encouraging foundations to prioritize this funding could enhance their long-term impact.
6. Diversity on Boards and Staffing Practices
Family foundation boards are becoming more diverse, with greater racial, gender, and generational representation. However, the survey reveals that independent board members are still primarily recruited through personal networks, which may limit the diversity of perspectives. Additionally, family foundations are trending toward outsourcing or hiring consultants rather than expanding full-time staff.
Looking Forward to 2030
As family foundations evolve, NCFP’s survey challenges them to deepen their commitment to accountability, equity, learning, and relationship-building. By embracing principle-based practices, family foundations have the potential to unlock critical resources and make a significant impact in the communities they serve.
As family foundations reflect on these insights, they can consider how best to shape the story of family philanthropy over the next decade, working toward a future that prioritizes inclusion, sustainability, and impactful social change.
Ellis Carter is a nonprofit lawyer with Caritas Law Group, P.C. licensed to practice in Washington and Arizona. Ellis advises nonprofit and socially responsible businesses on federal tax and fundraising regulations nationwide. Ellis also advises donors concerning major gifts. To schedule a consultation with Ellis, call 602-456-0071 or email us through our contact form.