2026 GIVING OUTLOOK: RESILIENT DONORS DRIVE GROWTH AMID SHIFTS IN PHILANTHROPY

Insights from Foundation Source reveal how policy, technology, and donor behavior are reshaping giving

FAIRFIELD, Conn., Nov. 13, 2025 /PRNewswire/ -- Despite a year of policy shifts and funding uncertainty, America's most strategic donors continued to give generously in 2025. According to Foundation Source – the leading provider of philanthropic solutions for donors, nonprofits, institutions, and the wealth advisors who serve them – its private foundation and donor-advised fund clients have already distributed more than $1.6 billion in grants to over 27,000 recipients this year, underscoring philanthropy's strength amid change.  

Released today and authored by Foundation Source CEO Joseph Mrak III, the 2026 Giving Outlook: Adapting to Reform, Redefining Impact explores how tax reform, technology, and evolving donor demographics are reshaping charitable giving for the busy giving season and the year ahead.

"Philanthropy has proven remarkably resilient," said Mr. Mrak. "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."

At the same time, the company released the executive summary of its 2025 Report on Private Philanthropy: Giving and Investment Trends within Private Foundations, which analyzes the historical giving and investment activity of more than 1,100 private foundations with assets between $1 million and $1 billion. Together, the two documents are a data-rich package offering both qualitative and quantitative insights into private philanthropy, providing valuable context for the remainder of the giving season and for 2026 planning.

Strong Momentum Heading Into Giving Season
Through September 2025, Foundation Source clients collectively made more than 71,000 grants totaling more than $1.6 billion to over 27,000 recipients. Private foundation clients awarded $1.5 billion, while donor-advised fund clients, in partnership with Charityvest, contributed an additional $89 million. The top areas for giving were Education ($262 million), followed by Public & Societal Benefit ($146 million) and Human Services ($139 million).

"Our clients continue to show how private philanthropy can act as a stabilizing force when other funding sources fluctuate," said Mr. Mrak. "Their generosity reflects a clear desire to sustain nonprofits and address evolving community needs in real time."

Tax Reform Raises the Stakes for Strategic Planning
With the One Big Beautiful Bill Act (OBBBA) taking effect in 2026, new tax provisions are reshaping how donors approach charitable giving. The law introduces an above-the-line charitable deduction for non-itemizers and new AGI thresholds for both individuals and corporations, while capping certain itemized deduction benefits for top earners.

"The new rules create both opportunity and complexity," said Gillian Howell, National Philanthropy Executive at Foundation Source. "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."

Foundation Source's outlook notes that these changes make personalized philanthropic guidance increasingly essential. Advisors and donors who plan around timing, liquidity events, and long-term goals will be best positioned to maintain efficiency and flexibility once the new thresholds take effect.

Policy Shifts Change Funding Needs
Federal and state funding shifts are disrupting the nonprofit sector, with many charitable organizations facing budget constraints and reduced staffing. Against this backdrop, private philanthropy has never been more important, and donors will have to evaluate how to strategically deploy charitable capital to fill emerging gaps.

"As policy shifts impact funding sources for nonprofits, private philanthropy becomes a critical anchor," said Ms. Howell. "Donors will have to provide the kind of steady, flexible support that helps nonprofits stay focused on their mission amid uncertainty."

Next-Generation Donors Redefine Generosity
A shifting donor base is also transforming how philanthropy happens. As the Great Wealth Transfer accelerates, younger and more diverse donors are bringing expectations of speed, transparency, and personalization to their giving while the growing financial influence of women is amplifying values-driven, family-centered approaches focused on measurable outcomes.

"The next generation of donors expects the same seamless, data-driven experience in philanthropy that they receive in wealth management," said Mr. Mrak. "Technology is making it easier to give with purpose, track results in real time, and connect intent with impact."

Foundation Source anticipates continued investment in digital platforms and AI-assisted tools to help donors and advisors collaborate, identify high-impact opportunities, and deploy resources efficiently.

Looking Ahead
As 2026 approaches, philanthropy stands at a pivotal intersection of policy, purpose, and innovation. The outlook emphasizes that thoughtful planning, technology-enabled efficiency, and cross-sector collaboration will define the next era of strategic giving.

"The future of philanthropy will be shaped by adaptability," said Mr. Mrak. "When policy, technology, and purpose align, generosity becomes not only more efficient – but more human."

The full 2026 Giving Outlook can be found here.

The executive summary of the 2025 Report on Private Philanthropy: Giving and Investment Trends within Private Foundations can be found here. 

Stay updated through Foundation Source's annual Guide to the Giving Season, which continues to expand with resources to help donors, advisors and fundraisers make the most of year-end giving.

About Foundation Source (foundationsource.com)
Foundation Source is the leading provider of philanthropic software and services. A pioneer in philanthropic technology, we are the partner of choice for integrated, enterprise-grade solutions spanning private foundations, donor-advised funds and planned giving programs. Our flexible suite of tools and resources include end-to-end administrative support for the most popular charitable vehicles, specialized compliance, tax, development and consulting capabilities, and deep domain expertise to help maximize impact, mitigate risk, and improve efficiency for all parts of the philanthropic ecosystem. We work with donors, nonprofits, wealth advisors and financial institutions to launch, enhance or augment charitable initiatives with turnkey, white-label and outsourced offerings that meet a wide range of philanthropic objectives quickly, professionally, and compliantly.

As of June 30, 2025, we support more than 2,300 private foundations, 18,000 DAF account holders, and 1,800 nonprofits, administer $40 billion in charitable assets, and facilitate more than 180,000 grants and planned gifts annually.

MEDIA CONTACT
Carly Taylor
[email protected]
973-618-6993 

SOURCE Foundation Source