This article was originally published in the Nonprofit Times and is reposted here with permission.
The social sector is facing unprecedented and existential challenges—ones that test our resolve and leave many of us feeling uncertain about how to respond. Funders are contending with threats to their freedom of speech and their freedom to give. The family philanthropies we work with at the National Center for Family Philanthropy (NCFP) are no exception. As they look ahead to the coming months and year, they expect to be navigating an ever-shifting—and often—unfamiliar terrain.
Families are critical levers for change and retain significant influence: family foundations and family-led donor-advised funds distribute approximately $100 billion annually. In 2026, family funders will take a diversity of paths; after all, families have varied goals and dynamics. And yet, throughout the sector we will see the current shifts in the pace, practice, and purpose of family philanthropies deepen and become even more widespread.
The pace of giving is accelerating.
The unprecedented rate of wealth creation and the transfer of wealth to the next generation is upon us, and many funders are shifting into action: They are giving big and giving now.
In the coming months, we expect to see an increase in the flow of capital with a greater commitment to responsiveness. Many funders are revisiting norms and assumptions about giving as the needs of communities become more clear and acute. More and more, philanthropic families are becoming open to an abundance mindset and re-defining risk.
Families are also revisiting the questions of payout and perpetuity with renewed curiosity as the political climate sparks further uncertainties.
We’ve already seen a rise in foundations spending more than the required minimum of 5% of their corpus. According to our Trends 2025 report, 71% of family foundations give more than 5% compared to 55% ten years before. Plus, more than a third reported that they increased their payout in the past two years. More recently, a number of foundations are responding to the current moment by increasing their annual grantmaking, and giving larger, more flexible gifts. We expect—and indeed encourage—this trend to continue.
Our Trends 2025 report also shows that many more foundations have decided to limit the lifespan of their philanthropy (from 9% of foundations in 2015 to 13% in 2025), or to periodically revisit the question of whether to operate in perpetuity (from 20% to 26%). Given the pullback in federal funding and urgent and widespread need, we anticipate that more funders will be limiting the lifespan of their philanthropies to distribute more capital, more quickly.
The practice of giving is shifting.
The scale of societal challenges—from racial equity to democracy, climate change, and the consequences of political overreach—are intensifying. At the same time, many funders are recognizing that current practices, which are often fragmented, top-down in nature, or solely transactional, are not meeting the needs of their communities. In response, we expect funders will shift their strategies, step out of well-worn practices, innovate, and experiment.
More and more funders are embracing trust-based practices with a recognition that the expertise to move capital with expediency and effectiveness rests with those who are most proximate to the work—nonprofit and community leaders. Families are ceding control to share power, particularly as generational profiles change and giving norms adapt. Trends 2025 reports that 73% of family foundations are considering using principle-based grantmaking practices in the future.
There is also a growing emphasis on strategies that include advocacy and systems change as a greater awareness emerges that more universal reform is needed. Families are bearing witness to the promulgation of unjust policies that are compelling them to act with intention and consider the complexities of enduring change.
Donors are revisiting the purpose of philanthropy.
A new culture of giving is emerging. Funders are increasingly interrogating their responsibility to steward public resources effectively and equitably, and revisiting their goals, objectives, and approaches accordingly. In fact, according to our Trends 2025 report, 41% of family foundations have had discussions about the source of the family’s wealth and how it can inform its strategy. We expect the number to increase in the coming years.
What’s more, trust in institutions is declining as scrutiny of philanthropic actors and their role in society is increasing. There is a push to reimagine philanthropy as a public good. In the months ahead, philanthropy will continue to be reframed so that it is not just about donors’ generosity but rather their responsibility. As a consequence, more funders will be thinking deeply about who and what they are accountable for. They will continue to explore how they can be transparent with their grantee partners about their work, including their mistakes and limitations. They are also asking how the current policy environment changes—if at all—how they demonstrate their accountability.
Donors can strengthen the practices of philanthropy to meet the needs of today and tomorrow.
While we see many families embrace accelerated giving, innovations in how they give, and reimagining why they give, we recognize that for many, these shifts are not happening as quickly or as extensively as needed to meet the challenges of the moment. The trendlines, while positive, can be uneven. We hope that more funders will incorporate accountability, equity, and learning and reflection in their giving and center the relationships that make change possible.
Funders have a meaningful opportunity to stand in solidarity with their grantee partners, to strengthen their funder-grantee relationships, and to be more effective stewards of the public trust. Doing so will not always be easy—and the path forward will not always be clear. But orientating themselves to their philanthropic purpose, values, and effective principles will steer donors toward what is possible and create a better future for all.