Changes to government funding that have disrupted nonprofits, new tax provisions set to take effect next year, and a rising stock market have pushed philanthropic donors to increase their giving throughout 2025. That momentum is expected to continue through the giving season during the final weeks of the year.
Foundation Source, a platform used by over 4,100 foundations and nonprofit clients to manage their philanthropy, said Thursday in its outlook for 2026 that through September, its clients had already made 71,000 grants totaling more than $1.6 billion to over 27,000 recipients this year. Private foundation clients awarded $1.5 billion, and its donor-advised fund clients (through a partner called Charityvest) contributed an additional $89 million.
The causes that received the most funding were related to education ($262 million), public and societal benefit ($146 million) and human services ($139 million).
"Philanthropy has proven remarkably resilient," Joseph Mrak III, CEO at Foundation Source, said in the outlook. "Even as markets fluctuate and policies shift, donors continue to step up. What's changing isn't the generosity — it's the strategy. Today's donors are giving with greater purpose, speed, and sophistication than ever before."
The longest-ever U.S. government shutdown, a pause that, among other things, prevented SNAP benefits from reaching millions of low-income Americans, moved donors in recent weeks to support food banks facing shortages. But other major factors have driven charity giving throughout this year, and Foundation Source expects that momentum to continue.
Changes to federal and state funding have disrupted the nonprofit sector, with many organizations facing budget constraints and reduced staffing. In response, donors have stepped in with charitable capital to fill gaps.
"Our clients continue to show how private philanthropy can act as a stabilizing force when other funding sources fluctuate," Mrak said. "Their generosity reflects a clear desire to sustain nonprofits and address evolving community needs in real time."
Fortunately, a rising stock market has also helped grow the coffers of philanthropic organizations and individuals. The S&P 500 is up 14.8% this year. (Private foundations have also notched double-digit returns in the years leading up to this one.)
With the One Big Beautiful Bill Act signed into law this summer and taking effect in 2026, new tax provisions are changing approaches to charitable giving. There are new above-the-line charitable deductions for non-itemizers, and new adjusted gross income thresholds for individuals and corporations. Certain itemized deduction benefits for top earners have also been capped.
"The new rules create both opportunity and complexity," Gillian Howell, national philanthropy executive at Foundation Source, said in the company’s outlook. "Donors who act strategically now — through accelerated gifts, appreciated asset contributions, or funding new charitable vehicles — can optimize impact while navigating a changing tax environment."
Seven percent of single-family offices were created with the primary purpose of serving a family's mission, legacy or philanthropic goals, according to Bank of America’s inaugural family office report published this week.
The bank’s survey of more than 300 offices also found that among family offices that support the family’s philanthropy, 44% handle that entirely in-house and the rest partially or fully outsource it.
Offices of all sizes engage in philanthropy through a mix of donations to charitable organizations, private foundations, and donor-advised funds. Although offices managing $500 million in assets or more are significantly more likely to donate directly to charitable organizations, as well as make contributions to giving vehicles including donor-advised funds and private foundations, according to Bank of America’s report.
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More News
- SFO Alliance, a peer-to-peer network of 1,100 single-family offices, has named Jeroen Vetter its new CEO. He is replacing SFO Alliance co-founder Keith Johnston, who is leaving the organization. Co-founder Lex van Dam was also named executive chairman.
- The Federal Trade Commission is investigating proxy advisory firms Institutional Shareholder Services and Glass Lewis to determine if they violated antitrust laws through their business of guiding shareholder votes on things like CEO pay and social- and climate-related policies.
- The end-of-year doorstops have begun to arrive. This week, McKinsey published its 200-page “McKinsey on Investing,” which “explores how leaders are finding investment opportunities amid structural trends and persistent imbalances in the global economy.”
- If you closely follow the asset management industry or are already familiar with Jon Gray's TikTok-style videos on LinkedIn, then this long read in Bloomberg won't have a ton of revelatory stuff. But it's nonetheless well done and worth the time: Jon Gray Is Reshaping Blackstone Into Everybody's Investing Megastore.
- At The New Yorker’s annual festival, Tyler Foggatt, a senior editor, read to Jeopardy host Ken Jennings a comment about him that a fan posted online: “How lucky are we that the perfect host for the show also happens to be the greatest to ever play the game?” Jennings, of course, had an answer to the question. “That is a lovely sentiment, but I think you can hear how improbable it is,” he said. Whether you’re a fan of the game show or not, the whole interview is worth a watch or a listen.
- Spear's reported this week that Anthony Thomson, the man behind Metro Bank and Atom Bank, has revealed the official name of his new family office banking venture: Velorai (not to be confused with Volturi, as I first misread it).
Jobs
- Brown Brothers Harriman is still hunting for a family office solutions manager in Boston.
- Trove, an administration and services provider to family offices, is looking for a relationship manager in Stamford, Connecticut.
- Glenmede, the $49 billion investment firm, is hiring a relationship/portfolio manager in New York.
- J.P. Morgan is hiring a private banker in Brooklyn.
- Lido Advisors, a $38 billion private wealth management firm that works with UHNW families, is hiring a wealth manager in New York.
- Blue Owl Capital, the $284 billion asset manager, is hiring a VP or president to focus on institutional and family office capital. Compensation is $250,000 as well as other benefits.
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