Family philanthropy is undergoing a marked transition. Some of this is driven by the significant wealth transfer that will happen within the next two decades, which Cerulli Associates estimates at $124 trillion. Within this moment of transfer we are seeing shifts in governance, operational approach and grantmaking styles. As one donor remarked to us recently, the “next gen” donors are actually the “now gen”: the future is here. In addition, there are significant numbers of families bringing new wealth into the fold and with it new approaches to giving while living. Combine this with ecosystem changes in structures (e.g., more families using donor-advised funds, LLCs, and impact investing vehicles) and the field is much more complex than it was even twenty years ago.
In our new report, Collaboratives as a Philanthropic Asset Class, co-authored with Neha Dalal of Jasper Ridge Partners, we argue that collaboratives—the expert-led vehicles that aggregate and channel philanthropic resources from multiple donors—offer a glimpse of how the next era of philanthropy could take shape. The report draws on our individual and collective research over the past years, the input of more than 150 donors and collaborative leaders gathered at the Philanthropy Together Co-Lab conference in 2025, Bridgespan collaborative and donor surveys, as well as our client work.
Our conclusion is that collaboratives are not one size fits all and can accelerate the work of all sizes and kinds of donors. To maximize the impact of collaboratives and overcome common barriers to using them, we argue that donors must first reflect on their own needs and goals, must engage with and evaluate collaboratives in a different way than individual nonprofits, and should accelerate the development of key infrastructure to make sourcing and funding collaboratives much easier.
Collaborative Giving in Practice
Tegan Acton, the co-founder of Wildcard Giving, counts collaboration as a strategy. The Actons have an intentionally lean team and value collaboratives as a way to coordinate with other funders, access expertise, and reduce the burden on grantees, all while moving resources nimbly to communities. Wildcard sees its participation in donor collaboratives as a complement to its direct grantmaking. Collaboratives act as an amplifier of all of the organization’s efforts—one more tool it can deploy, in addition to funding storytelling, power building, and direct services. Wildcard, like the authors, believe more donors should participate in collaborative giving.
Yet, Wildcard and other families who use collaboratives are still the exception and not the norm in family philanthropy. As researchers and practitioners, we have been surprised by the underrealized potential of collaborative philanthropy and believe that collaboratives can find a place in every donor’s “portfolio,” much like most investors find a place for funds alongside direct stockpicking. Our research to determine why more funders aren’t using collaboratives elevated three primary barriers:
Strategic barriers, including a lack of knowledge about collaboratives and how they work.
Relational barriers, which are rooted in issues of trust and collective decision-making. For example, donors may struggle with how to structure their engagement with collaboratives, cede control, or navigate multi-stakeholder governance.
Tactical barriers, including difficulty identifying, vetting, measuring the impact of, and differentiating among existing funds.
We believe these barriers are typical for any nascent marketplace and can be addressed. Most importantly, collaboration, like foundation operations, is not one size fits all. The differences in kinds of collaboratives and the approach they take present the opportunity; if we build the practice and necessary infrastructure to understand these differences, the impact potential is immense.
We have identified three core recommendations to address these barriers and help more donors realize the benefit of collaboratives. Acton and Wildcard Giving help understand these recommendations.
Reflect
First, the best way to start engaging with this asset class is for family philanthropies to reflect on their own motivations, needs and goals. The Actons were new to philanthropy only a decade ago and wanted to learn from community and other leaders. They knew they wanted a lean internal team and as such, were willing to outsource some of the relationship management of grantees to other experts. The couple also knew that when they wanted to expand beyond local giving where they have personal networks and insight, they knew they’d need leaders who brought new networks and expertise.
Engage
Second, once donors have identified their specific needs, they need to adapt their sourcing and diligence process—as the value collaborative giving models offer is different than that of direct-service NGOs. Case in point: when Wildcard sought to support reproductive health and rights, the team began speaking with other donors, community leaders, and networks to understand what the field needed. They asked: what already existed? What was missing? What did communities need beyond money? Who was best situated to lead?
Wildcard learned about a new collaborative giving effort: the Collaborative for Gender and Reproductive Equity (CGRE), which would go on to power more than 250 organizations to advance gender and reproductive equity all across the United States. In deciding to become a founding donor of this effort, Wildcard recognized that they would have to give up grantmaking control in exchange for the leverage, expertise, and learning that CGRE could provide. In this instance, the trade was more than worth it and aligned with its trust-based grantmaking values.
Nurture
Finally, we highlight the under-resourced and underdeveloped infrastructure of collaboratives. Part of Acton’s interest in sharing Wildcard’s experience is to convince others of the benefits of an ecosystem that acts collectively. But, we argue, without effective sourcing and diligence tools, shared language and standards, and a shared field agenda, the asset class may not reach its full potential.
The Future is Collaborative
Philanthropy is no longer defined by the lone visionary donor but by networks of funders aligning capital, expertise, and learnings toward shared, bold goals. Collaborative funds are among the most promising drivers of this shift.
Do you use collaborative funds? Why or why not? Do you have any stories to share?
Examples of Families Using Collaboratives
The Hill-Snowdon Foundation has made community organizing its core strategy. In doing so, it specifically looks to fund coalitions, partnerships and efforts that bring together disparate groups and shift power to communities; not surprisingly collaborative funds make up a core part of their portfolio.
The Safe Childhoods Initiative is co-funded by several foundations, including the Carlson Family Foundation, the Oak Foundation, and the Phillips Foundation, who saw an opportunity to supercharge a field that had been underfunded, seizing a timely moment for impact and intervention and creating a way to bring other donors to the work.
Disaster response, too, has benefitted from the collaborative approach, creating a community of peers working to learn and fund together. After the devastating Oregon wildfires in late summer 2020, the Roundhouse Foundation helped co-create the Oregon Disaster Funders Network, a coalition that now includes approximately 35 philanthropic organizations. Now, through the network, when a disaster strikes, there’s a shared document that identifies community needs and shows pathways of support.
The views and opinions expressed in individual blog posts are those of the author(s) and do not necessarily reflect the official policy or position of the National Center for Family Philanthropy.