Exploring Trends and Strategic Insights for U.S. Private Foundations in 2026

PKF O'Connor Davies and FoundationMark Host Event on Private Foundations

On June 24, 2026, PKF O'Connor Davies, a prominent player in the accounting, tax, and advisory field, held a key event in partnership with FoundationMark. The focus was on the dynamic landscape of U.S. private foundations, specifically highlighting growth rates, investment trends, and operational performance. Dubbed "The Data Behind the Dollars: Measuring What Matters to Foundations," this event gathered industry experts to analyze critical trends shaping the sector.

During the event, impressive data was unveiled indicating a dramatic increase in the assets managed by U.S. private foundations, growing from approximately $653 billion in 2010 to nearly $1.8 trillion by 2025. Additionally, annual contributions from these foundations surged from $42 billion to an impressive $118 billion, reflecting a significant upward trajectory in philanthropic engagement. With forecasts suggesting that giving will exceed 7% growth in 2026, the sector is primed for another record year, with anticipated contributions exceeding $126 billion.

John Seitz, Chief Executive Officer of FoundationMark, noted that investment performance continues to be a driving force behind this growth. Since 2015, private foundations achieved more than $1.2 trillion in investment returns, overshadowing the $718 billion received in new contributions, thus emphasizing the pivotal role of effective investment strategies and oversight.

One of the event's key insights highlighted a noticeable shift in asset allocations within large foundations. The proportion of assets devoted to private equity and other alternative investments dropped from 53% in 2021 to 45% in 2024, while allocations to publicly traded securities saw an increase. This shift suggests that foundations are reevaluating their investment approaches, seeking more stable returns in public markets as opposed to higher-risk alternatives.

Moreover, the discussion addressed the pressing issue of sunsetting. Every year, approximately 3,000 to 4,000 foundations cease operations, prompting crucial considerations regarding liquidity, staffing, and grants. Interestingly, many foundations initially planning to sunset eventually decide to continue their philanthropic efforts, perhaps driven by the increasing complexity and size of the sector.

Despite the ongoing evolution, it became clear that there remains significant untapped potential in Program-Related Investments and Donor-Advised Funds. While interest in these financial strategies is growing, data revealed that only about 600 foundations reported engaging in Program-Related Investments, with less than 2% utilizing Donor-Advised Funds.

The event also touched upon the increasing scrutiny foundations face from regulators and policymakers regarding transparency and compliance. In this rapidly changing landscape, strong governance, diligent documentation, and adherence to compliance norms are becoming non-negotiable necessities for sustaining their charitable impact.

According to Thomas Blaney, the Private Foundations Practice Leader at PKF O'Connor Davies, this gathering provided a valuable platform for discussing the complexities private foundations face in today's climate. He emphasized the importance of focusing on investment performance and governance to ensure the longevity and efficacy of philanthropic endeavors.

To delve deeper into the insights shared at the event, stakeholders can visit FoundationMark's website, which offers extensive benchmarking insights and analyses on foundation performance. These resources aim to empower foundations in making informed investment decisions to maximize their contributions to societal well-being.

For more information on PKF O'Connor Davies and their comprehensive services tailored to private foundations, please visit pkfod.com. With its vast experience in the sector, PKF O'Connor Davies is committed to guiding foundations through an increasingly complex philanthropic landscape, ensuring they can continue to make a meaningful impact.