What's Happening?
Foundation Source has released its 2026 Giving Outlook, detailing how policy changes, technology advancements, and evolving donor demographics are reshaping philanthropy in the United States. Despite uncertainties
in funding and policy shifts, strategic donors have continued to contribute generously, with over $1.6 billion in grants distributed to more than 27,000 recipients in 2025. The report, authored by CEO Joseph Mrak III, emphasizes the resilience of philanthropy, noting that donors are increasingly giving with purpose, speed, and sophistication. The report also highlights the impact of the One Big Beautiful Bill Act (OBBBA), which introduces new tax provisions affecting charitable giving strategies. Foundation Source supports over 2,300 private foundations and administers $40 billion in charitable assets, facilitating more than 180,000 grants annually.
Why It's Important?
The shifts in philanthropy are significant as they reflect broader changes in donor behavior and the impact of policy reforms on charitable giving. The introduction of new tax provisions under the OBBBA creates both opportunities and complexities for donors, necessitating strategic planning to optimize impact. As federal and state funding shifts disrupt the nonprofit sector, private philanthropy becomes increasingly crucial in sustaining nonprofits and addressing community needs. The growing influence of younger, diverse donors and women in philanthropy is driving a focus on transparency, personalization, and measurable outcomes, which could redefine the future of charitable giving.
What's Next?
As 2026 approaches, philanthropy is expected to evolve further with increased investment in digital platforms and AI-assisted tools to enhance collaboration and efficiency. Donors and advisors will need to navigate the changing tax environment strategically, considering timing, liquidity events, and long-term goals. The emphasis on adaptability, technology-enabled efficiency, and cross-sector collaboration will likely shape the next era of strategic giving, making personalized philanthropic guidance essential for maintaining efficiency and flexibility.
Beyond the Headlines
The transformation in philanthropy driven by next-generation donors and technological advancements could lead to long-term shifts in how charitable organizations operate and engage with donors. The focus on data-driven experiences and real-time impact tracking may enhance accountability and transparency in the sector, potentially influencing public trust and engagement in philanthropy. Additionally, the growing financial influence of women in philanthropy could amplify values-driven approaches, fostering family-centered giving that prioritizes measurable outcomes.
