To understand foundation support for nonprofits in 2026, we need to step back to 2025. If you were working in or consulting for a nonprofit, especially one providing services or support to disenfranchised populations (in the US or abroad), it was a chaotic and troubling moment. Organizations were making urgent decisions, from removing or revising DEI-related website language to confronting the possibility that not only were your beneficiaries at risk of losing access to mission-focused programming, but your organization was also at risk of closure or a significant reduction in staffing.  

Meanwhile, the national foundations that had organized and stepped up to support nonprofits at the height of the COVID pandemic in the US seemingly retreated from view, as these organizations were also at risk. It was a moment of profound reckoning and adjustment, and yet the path forward has not smoothed out as erratic national policy decisions continue to cause fallout.  

And, while historic challenges were happening, wealth continued to accumulate to a handful of individuals. According to a recent article in Inside Philanthropy, “Twice as Many Top Foundations Have Living Billionaire Donors Versus a Decade Ago,” (Michael Kavate, May 6, 2026) “the historical record shows that living billionaires were behind 24% of the country’s largest 25 foundations a decade ago, but now call the shots at 48% of those institutions.” According to the article, this is a shift from 2015, when living billionaire private foundations accounted for 6 of the wealthiest foundations, compared to 12 in 2024. And, with a few notable exceptions like MacKenzie Scott’s giving and the MacArthur Foundation’s Set it at Six campaign to increase payouts to nonprofits from endowments at 6%, many nonprofits are struggling, especially those who are now seeking to diversify funding by seeking foundation grants. Despite efforts to increase giving, even a headline-grabbing philanthropic gift to support USAID’s efforts is a mere drop in the bucket compared with the $15.5B in disaster relief and other humanitarian aid disbursed in 2023. 

In our work with nonprofits, this context becomes the signs and signals we are constantly reading as we help organizations identify a path forward, diversify revenue streams, and build new muscles to seek and secure philanthropic support.  

Pivoting to a new revenue stream takes time. And, we know, time is a luxury for a nonprofit that is seeing an increase in families seeking food at their food bank. Despite the lack of a transformational all-in effort by corporate and private foundations, as we saw during the COVID pandemic, many foundations are stepping up and supporting their long-time grantees through quiet conversations and increased trust-based grants.  

For nonprofit leadership now seeking to pivot or increase revenue from foundations, remember this – your primary revenue source became your primary revenue source because the organization grew around that source by building systems and processes, and understanding that ecosystem, the organization was able to fulfill its mission. The limitations of this one primary government revenue source were always apparent: slow reimbursement rates, quarterly reports, the complex renewal applications. And, of course, the creative ways to stretch every dollar to enhance programming. You managed to continue to deliver mission-inspired services.  

These are skills and institutional knowledge that can be built on as an organization seeks to diversify its revenue. Ramping up any new revenue source, especially with foundations, does have limitations. So, let’s level set with some data. 

• According to Candid’s US social sector dashboard, there are 144,484 private and community foundations. 

• 19% of the gifts received (as opposed to government grants or earned revenue) by nonprofits are from private foundations.  

• Foundation giving has been increasing. In 2014, foundations contributed $58B. In 2022, that figure increased to $116B.  

This moment has activated a sense of urgency on both sides of the equation in the nonprofit ecosystem – among both funders and nonprofits. A pivot to foundation funding will not make up for losses related to government funding. And for some nonprofits, there may be hidden opportunities in their CRM or among board members such that the next right step is to invest in individual giving. But for those nonprofits that have been scaling through government funding, the pivot to foundation funding might be the next right step given the increased wealth of national foundations seeking impact. Build on the muscle that enabled growth and scale. The people power, systems and processes can be adapted to serve foundation funders. Follow the signs and signals, and set your path.