One in five foundations expect changes in grantmaking focus following 2024 election

From cuts to federal funding to threats to revoke nonprofits’ tax-exempt status, recent policy changes by the federal government have rattled many in the nonprofit sector. Foundations play an important role in helping nonprofit organizations navigate turbulent times by providing financial support as well as through networks and development opportunities. So, understanding how foundations are responding to current developments helps sector leaders strategize and plan for the near future. 

To that end, Candid’s annual Foundation Giving Forecast Survey attempts to gauge the state of foundation funding and practice. As part of our 2025 survey, fielded between January and March, we asked foundations: “Do you expect a shift in focus in your foundation’s grantmaking as a result of the 2024 U.S. election?” In all, 520 respondents answered that question, with 21% (108) indicating they were planning to make changes in their grantmaking focus, while 79% (412) said they were not planning to do so. 

Foundations planning changes emphasized addressing federal funding cuts, advocacy, and flexibility  

From among the 520 foundations who answered the question about changes to their grantmaking focus, we received 161 write-in comments, including 87 from respondents who answered “yes” and 74 from those who answered “no.”  

Of those who answered “yes” who also left a comment, 31 respondents indicated they were making changes to fill the gap in government funding, following the administration’s decision to freeze many federal grants. Participants wrote, for example: 

• “We will focus on local organizations experiencing federal funding cuts or delays” 

• “We can see needing to increase the administrative overhead percentage to ensure operations in lab universities continues. We may also need to increase funding to emerging scientists who may no longer receive funding from the NIH.” 

• “Mitigate funding cuts to core partners” 

Another 26 respondents said they would directly address cause areas likely to be threatened by the administration, especially around civil rights and immigration. For example:  

• “We will support pro-democracy efforts as well a human/civil rights protections” 

• “According to the budget recently approved by our board of trustees, we anticipate a $4 million increase in our grantmaking budget compared to the current fiscal year. This will allow deeper investments in groups working on the front lines to protect civil rights, defend democracy, build coalitions, and meet this moment.” 

The rest of the comments suggested respondents were less sure about what specific changes they might make but did foresee shifts on the horizon. 

Foundations not planning changes emphasized staying the course on priorities 

Although 412 respondents answered “no” to the question of whether they expected changes in grantmaking focus—four times as many as those who answered “yes”—only 74 of those who answered “no” provided comments. Here are some themes that emerged from their comments: 

About a third of comments indicated the election does not impact their work: 

• “Our grantmaking focus areas are determined by our Indenture so we do not refocus for political reasons” 

Twenty-five “no” respondents expressed a desire to remain flexible with grantees who may face hardship due to the new administration’s policies: 

• “At this time we continue supporting community needs as we always have but are staying informed and will make shifts if needed and possible for us” 

• “Maybe—we’ll see what our current grantee needs are” 

• “Our focus will remain the same, however, our payment structure may change” 

Another 15 or so said they were already addressing advocacy-related issues: 

• “We were already beginning a shift to be more responsive to emerging community needs” 

• “Currently fund democracy work as part of a [multiyear] commitment” 

More foundations expect changes in grantmaking focus than had made changes in 2019 survey 

We had asked participants a similar question in our 2019 survey about whether foundations had made any changes in grantmaking as a result of the 2016 elections. Then, only 12% of respondents answered “yes.” 

At 21%, the percentage of respondents planning to make changes in this year’s survey is almost double the percentage that had made changes as of 2019. It is important to note, however, that we asked that the 2019 survey was fielded two years out from the election and that the same foundations did not necessarily respond to the question in both surveys. While write-in comments from those who answered “no” six years ago were similar, comments from those who answered “yes” were much more focused on specific issue areas, such as immigration or climate change, rather than the general giving environment.  

One major difference between the 2019 and 2025 surveys, of course, is that there was no freeze on federal grants in 2019. In this year’s comments, there was a focus on the need to fill funding gaps left by the loss of government grants. It remains to be seen how many foundations will have made changes in their grantmaking focus two years into the current administration. Given the political pressures and funding challenges nonprofits are facing, however, many foundations are likely to  shift their grantmaking focus to some extent.