Foundation Giving Forecast to Reach $120 Billion as AI Reshapes the Sector

Foundation giving is projected to grow 5–7% in 2026, reaching an estimated $118–$122 billion — up from 2025's projected $112 billion. The increase arrives as foundations hold approximately $1.75 trillion in assets and face mounting pressure to deploy capital amid historic federal retrenchment from social spending.

$1.75 Trillion in Assets Fuels the Growth

The growth forecast rests on a strong asset base. Foundations held slightly more than $1.6 trillion at the end of 2024, with estimates climbing to $1.75 trillion by late 2025. According to FoundationMark analysis spanning two decades, the most reliable predictor of giving levels is the three-year average asset level — a metric that currently points firmly upward.

The growth is not uniform across sectors. Donors are increasingly targeting global health, child and maternal health, infectious disease prevention, and poverty reduction. These priorities reflect both long-standing philanthropic commitments and the widening gap left by federal cuts to international development spending and domestic social programs.

Family-led philanthropies and traditional foundations are also expanding impact investing portfolios, blending grants with market-rate investments and policy advocacy to maximize the reach of each dollar deployed.

AI Moves From Experiment to Standard Practice

The question in 2026 is no longer whether foundations use artificial intelligence — most already do. Program officers are piloting bias-checking tools, deploying data analysis systems to evaluate grant applications, and using AI to measure program impact at scale. The Chronicle of Philanthropy notes that the real question now is whether philanthropy will lead in responsible AI adoption or defer to the private sector.

Collective giving is gaining momentum alongside the technology shift. A growing number of giving circles and mutual aid networks are pooling resources at the community level, creating decentralized funding channels that operate outside traditional philanthropic infrastructure.

Where the Smart Money Is Heading

For grant seekers, a growing philanthropic pie means more opportunities — but competition will intensify as organizations that previously relied on federal funding pivot to foundation sources. The most successful applicants will target areas where foundation priorities overlap with unmet public needs: health equity, climate resilience, AI ethics, and economic mobility.

Understanding which foundations are growing their portfolios and where capital is flowing is critical to an effective funding strategy. Grantedai.com provides searchable foundation data to help match your work with the right funders. For in-depth philanthropic trend analysis, visit the Granted blog.