Foundation Giving Forecast to Hit Record $122 Billion in 2026

Charitable foundations are on track to distribute between $118 billion and $122 billion in 2026, a 5-7% increase over last year's estimated $112 billion, according to projections from FoundationMark. If the stock market holds, it will be another record year.

"Barring a major downturn in the stock market, 2026 should be another record-setting year for giving," FoundationMark CEO John Seitz told the Chronicle of Philanthropy. The forecast is based on a three-year average asset model that has explained more than 96% of foundation giving historically.

Federal Cuts Are Accelerating the Shift

The growth isn't happening in a vacuum. As federal grants face freezes, rescissions, and proposed cuts across NIH, NSF, and dozens of domestic programs, foundations are actively repositioning to fill gaps.

The Greater Lowell Community Foundation deployed $1 million in emergency grants after a survey found 64% of its nonprofit partners had been hit by funding cuts. In San Diego, the Prebys Foundation, Price Philanthropies, and San Diego Foundation pledged $70 million for residents losing access to food, housing, and healthcare. The Mellon Foundation committed $15 million specifically for state humanities councils.

Where the New Money Is Flowing

Foundation giving is shifting toward:

• Emergency stabilization — food banks, legal aid, immigrant services hit by federal withdrawal
• Impact investing — climate, health, and economic opportunity, with more foundations treating investments as programmatic tools
• AI adoption — foundations using AI to improve grant decision-making and organizational strategy
• Collective giving — neighborhood-based resource pooling models gaining traction

For nonprofits navigating the turbulence, the message is clear: foundation dollars are growing, but competition for them will intensify. More coverage of the shifting funding landscape is available on the Granted blog.