Family foundations are a cornerstone of philanthropy, channeling generational wealth into impactful grantmaking and community initiatives. These foundations are often guided by the values, traditions, and priorities of a donor family, resulting in distinct governance structures, staffing patterns, and grantmaking approaches. Whether entirely family-run or including nonfamily board members, family foundations play a vital role in shaping today’s philanthropic landscape.
The 2025 Foundation Operations and Management Report offers fresh insights into how family foundations function. From board composition and compensation to staffing and advocacy, this year’s report highlights key trends influencing family philanthropy.
Family Participation on Staff
As noted in the “Who Responded” section, just over half (52%) of the foundations identified as family foundations. Among these, more than two-thirds (69%) had paid staff. Of the family foundations with paid staff, 39% employed full-time staff who were related to the donor family. Additionally, 42% of full-time CEOs or top administrators were family members.
Family Foundation Board Structure
Governance structures among family foundations vary widely, especially regarding board composition. According to the report:
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About half (51%) of family foundations have boards made up entirely of family members, while the other half (49%) include at least one nonfamily member.
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Even among boards with nonfamily members, a majority—57% of board members—are still related to the original donor family.
Board Compensation Trends
Board compensation remains an area of differentiation between foundation types. The 2025 report found that 25% of family foundations compensate board members for routine board service, such as attending meetings, reviewing proposals, and setting policies. This is lower than independent foundations (40%) but higher than other foundation types (19%).
Notably, family foundations with nonfamily board members were more likely to offer board compensation than those composed solely of family members: 33% of foundations with nonfamily members provided compensation, compared to 19% of those with only related board members.
Health Insurance and Benefits
Family foundations tend to cover a significant portion of employee benefits, particularly health insurance. The report found that family and independent foundations were more likely to be the sole contributors to employees’ health insurance premiums, compared to other types of foundations.
Family Foundations and Advocacy
While not all foundations engage in direct policy work, the report highlights that family foundations were among the most likely to meet with policymakers at all levels of government. This suggests a growing interest in leveraging influence beyond grantmaking, ensuring that philanthropy supports systemic change.
Looking Ahead: The Future of Family Philanthropy
With more than half of surveyed foundations identifying as family foundations, this segment continues to influence the direction of modern philanthropy. As they balance governance, staffing, and board diversity, family foundations are well-positioned to drive long-term impact while evolving with shifting philanthropic trends.
Explore the Full 2025 Foundation Operations & Management Report »