Major Foundations Pledge Hundreds of Millions More to Counter Federal Cuts
March 10, 2026 · 2 min read
Claire Cummings
As federal funding freezes and grant terminations ripple through the nonprofit sector, the nation's largest private foundations are opening their checkbooks wider — though the math still doesn't close the gap.
The MacArthur Foundation has raised its charitable payout from a target of 5.25 percent to a floor of 6 percent for 2025 and 2026, translating to roughly $150 million or more in additional giving beyond planned commitments. The foundation disclosed that its grantees receive an average of 12 percent of revenue from government grants, with a concentrated subset dependent on government for 25 percent or more — funding now critically threatened by budget cuts.
Who Else Is Stepping Up
MacArthur is not alone. The Marguerite Casey Foundation and Woods Fund have both announced double-digit payout increases. The Gates Foundation, Stupski Foundation, and McClatchy Foundation are planning to spend down their endowments entirely. Freedom Together has also signaled increased spending.
Collectively, U.S. foundations give approximately $100 billion annually. If all foundations increased payouts proportionally to MacArthur's increase, the sector could unlock an estimated $20 billion in additional annual giving, according to analysis in the Stanford Social Innovation Review.
The Scale Problem Remains
The numbers illustrate both promise and limitation. Private philanthropy provided $16.7 billion for science alone in 2022. The proposed federal cuts across major science agencies total approximately $30.5 billion. Even with accelerated foundation spending, the sector cannot replace the scale of federal investment in research, social services, and public health.
Some 61 percent of nonprofits now report that the current funding environment poses moderate to significant operational risk, according to sector surveys.
What Nonprofits Should Do Now
Organizations heavily dependent on federal funding should diversify immediately. Foundation giving cycles are accelerating, and many funders are explicitly prioritizing grantees affected by federal cuts. Track new opportunities through tools like Granted and review the detailed strategy guides available on the Granted blog.