What's Happening?
Foundation Source has released its 2026 Giving Outlook, highlighting the resilience of strategic donors in the face of policy shifts and funding uncertainties. The report, authored by CEO Joseph Mrak III, details how tax reforms, technology, and changing
donor demographics are influencing charitable giving. Despite market fluctuations, donors have distributed over $1.6 billion in grants to more than 27,000 recipients in 2025. The report emphasizes the strategic nature of modern philanthropy, with donors focusing on purpose, speed, and sophistication. The executive summary of the 2025 Report on Private Philanthropy provides additional insights into giving and investment trends within private foundations.
Why It's Important?
The findings underscore the critical role of private philanthropy as a stabilizing force amid fluctuating funding sources. With the One Big Beautiful Bill Act set to introduce new tax provisions in 2026, donors face both opportunities and complexities in optimizing their charitable impact. The report suggests that personalized philanthropic guidance will be essential for navigating these changes. Additionally, the emergence of next-generation donors, who prioritize speed, transparency, and measurable outcomes, is reshaping the philanthropic landscape. This shift is expected to drive investment in digital platforms and AI-assisted tools to enhance collaboration and efficiency.
What's Next?
As 2026 approaches, philanthropy is positioned at a pivotal intersection of policy, purpose, and innovation. The outlook suggests that adaptability will be key, with technology-enabled efficiency and cross-sector collaboration defining the next era of strategic giving. Foundation Source anticipates continued investment in digital tools to help donors and advisors identify high-impact opportunities and deploy resources effectively. The organization will continue to expand its resources to assist donors, advisors, and fundraisers in maximizing year-end giving.
Beyond the Headlines
The report highlights the ethical and strategic dimensions of philanthropy in a changing tax environment. As federal and state funding shifts impact nonprofits, private philanthropy becomes increasingly important in filling emerging gaps. The growing influence of women and younger donors is amplifying values-driven approaches focused on measurable outcomes, potentially leading to long-term shifts in philanthropic strategies.
