As we look to the year ahead, the Alliance reflects on some of the philanthropic funding trends and insights that were published over the last year. Below we share a selection of relevant publications from 2024, along with some of their key findings. Please refer to our Science Philanthropy Indicators Report for more insights into science funding trends.
Giving USA 2024 presented its findings for 2023. The annual survey of charitable giving in the U.S. indicated that strong market growth increased the value of assets held by philanthropic organizations, which enabled increased giving. For the second year in a row, grantmaking by foundations exceeded $100 billion. Moreover, all four sources of giving (Individuals, Foundations, Corporations, and Bequests) grew in current dollars, resulting in an estimated $557 billion given to U.S. charities in 2023. However, when adjusted for inflation, this giving represented an overall decline of 2.1% from 2022. Many causes—some of which are related to discovery science – saw growth in 2023 even when adjusted for inflation, including: Education, which received $87.7 billion (an increase of 6.7% when adjusted for inflation), Public-Society Benefit, which received $62.8 billion (an increase of 7.2% when adjusted for inflation), and Health, which received $56.6 billion (an increase of 4.4% when adjusted for inflation). Over the last 40 years, giving by foundations increased nearly ten-fold from $11.0 billion to $104 billion and giving by individuals more than doubled from $159 billion to $374 billion in inflation-adjusted dollars from 1983 to 2023.
The Ultra High Net Worth Philanthropy 2024 report explores giving by ultra-high net worth individuals with more than $30 million in assets. Globally, these individuals gave $190 billion to philanthropic causes in 2022, representing an increase of almost 25% since 2018. North America was the source of nearly half ($90.6 billion) of global giving by the world’s ultra-high net worth individuals in 2022, representing an increase of 21% since 2018. Giving by the ultra-wealthy in Europe is especially on the rise, totaling $62.2 billion in 2022, which corresponds to a 29% increase since 2018. Total giving by ultra-wealthy individuals also increased in all other regions, including Asia ($24.2 billion, up 28%), Middle East ($8.6 billion, up 13%), the Pacific ($1.4 billion, up 20%), Latin America and the Caribbean ($1.6 billion, up 50.7%), and Africa ($1.2 billion, up 15.7%). The report finds that wealthy women are more likely to have a high affinity for giving. Additionally, less than 30% of individuals with assets of more than $100 million have a private foundation.
The Family Wealth Transfer Survey 2024 presented its findings related to wealth transfer, which has important implications for future philanthropic giving. Wealthy donors in North America and Europe are expected to account for over 70% of global wealth transfers between now and 2033, transferring more than $14 trillion and $7.4 trillion, respectively. Overall, individuals with a net worth of more than $100 million are expected to account for almost half of the $31 trillion being passed on. Over 70% of ultra-wealthy donors are over the age of 70, and over 30% are over the age of 80. Generation X—aged mid-to-late 40s and slightly older—are in line to benefit the most. Millennials are likely to receive large sums from their grandparents. Notably, the next decade’s beneficiaries are expected to be more interested in environmental and healthcare-related issues than those passing on wealth.
TThe NACUBO-Commonfund Study of Endowments examined the endowments of 688 U.S. colleges and universities and affiliated foundations for the fiscal year ending on July 30, 2023 (FY2023), representing a total of $839.1 billion in assets. The study found an average return of 7.7 percent in FY2023, which was much greater than the -8.0 percent return in FY2022. A total of $28.4 billion was withdrawn from the endowments of these institutions in FY2023, representing an increase of 8.4% compared to the previous year. Nearly 48% of this spending was used for student financial aid. The remaining spending was for research (17.5%), endowed faculty positions (11.1%), operation and maintenance of campus facilities (7.4%), and all other purposes (16.4%). The median endowment size of the institutions in the study was $209.1 million; nearly one-third were $100 million or less. To commemorate the 50th anniversary of this study since 1974, a complementary white paper reviews key developments and long-term trends in endowment management.
The ClimateWorks Funding Trends 2024 report focuses on philanthropic giving to climate change mitigation. The report finds that philanthropic giving from foundations and individuals to climate change mitigation increased by about 20% between 2022 and 2023, with an estimated range of $9.3 to $15.8 billion. Notably, this increase in climate giving was twice the rate of overall growth in global philanthropic funding, which increased by about 10%. Foundation funding for climate mitigation totaled $4.8 billion in 2023, nearly tripling since 2019. Yet climate mitigation funding still represented less than 2% of total philanthropic giving, which was estimated to be around $885 billion in 2023. The report examines funding trends across sectors and geographies, finding that clean electricity, forests, and food and agriculture were the top three sectors of climate mitigation funded by foundations from 2019 to 2023. The report also estimates that climate adaptation and resilience initiatives received at least $600 million in foundation funding in 2023.
The Science Philanthropy Alliance, the world’s first and longest-standing science philanthropy advising firm, believes when philanthropies, family foundations, and individual donors invest in discovery science, the next generation of scholars and preeminent scientists alike can unlock knowledge that will address our greatest challenges. Philanthropists can build a future where scientists have the resources that they need to address scientific mysteries that fuel life-changing discoveries, and we are here to guide them on their journeys for the benefit of society and the planet.
Thank you to Rose-Marie Brandwein, Strategic Communications Consultant, for her contributions to this article. If you have questions about these findings or our work at the Alliance, please contact Kate Lowry, Strategy Director, at klowry@sciphil.org.