Family foundations remain an important part of lean philanthropy. Whether fully family-led or supported by nonfamily board members and staff, they continue to influence their communities and giving priorities across generations. The 2026 Foundation Operations and Management Report (FOMR) offers new insight into how these foundations are structured and how they give. This year, 51% of survey respondents identified as family foundations, highlighting key trends in board and staff composition and compensation, next-generation engagement, grantmaking, investment approaches, and more.
Family Foundations Are a Large Share of Lean Funders
Of the 332 Exponent Philanthropy members who completed the 2025 Foundation Operations and Management Survey — along with 35 similar nonmember foundations — just over half (51%) identified as family foundations. This majority underscores the central role family foundations play among foundations with few or no staff and helps explain broader trends in governance, staffing, and grantmaking across the field.
Across the full respondent pool, foundations were geographically diverse, with just over half located in urban areas. Asset sizes ranged from under $1 million to more than $200 million, with a median of $33 million.
Engaging the Next Generation: A Clear Priority
Next-generation engagement remains widespread and intentional. Nearly three-fourths (71%) of family foundations reported actively involving next-generation family members in their work. Engagement most often takes the form of formal roles: 60% serve as board members, 25% hold board leadership positions, and 24% participate on advisory or junior boards.
Many foundations also create hands-on opportunities: 56% involve next-generation members in site visits, and 53% in discretionary grantmaking.
Approaches to engagement did not vary significantly by asset size or other key characteristics, underscoring succession planning and leadership development as consistent priorities.
Governance: Family Leadership Remains Central
Family involvement continues to shape board structures. Nearly half (46%) of family foundations reported boards composed entirely of family members, while 54% included at least one nonfamily trustee. Even when boards extend beyond the family, influence remains concentrated: on average, 79% of board seats are held by family members.
Board demographics also differ from those of independent and other foundation types. Family foundations reported a higher proportion of board members identifying as White and a lower proportion identifying as Hispanic and/or Latino/Latina. These patterns offer important context for governance discussions, particularly around board composition, recruitment, and representation.
Board Compensation and Long-Term Planning
Board compensation practices vary by foundation type. Family foundations were the most likely to compensate at least some board members. Though they generally provided lower amounts than independent and other foundation types.
Across all foundation types, 90 foundations reported providing routine board compensation. Among this group, the average annual amount per board member was $13,863, with a median of $7,000. For a detailed breakdown of board compensation by foundation type and staffing model, see Appendix E (p. 101).
Family foundations were also significantly more likely to plan for perpetuity, reinforcing their emphasis on legacy and continuity.
Staffing and Family Leadership
Family involvement often extends beyond the boardroom. Among family foundations, 71% reported having paid staff. Of those, 31% employed at least one full-time staff member related to the donor family, and 41% of full-time CEOs or top administrators were donor family members.
This staffing model, primarily nonfamily professional staff supported by family leadership, remains common.
Compensation and Benefits
The 2026 data indicate that full-time CEOs/top administrators at family foundations received higher base compensation than their peers at independent and other foundation types. Family foundations were also more likely to offer 401(k) retirement plans, highlighting differences in benefits structures across foundation types.
Detailed salary tables are available by asset size (p. 82) and by relation to the donor family (p. 84), with additional benchmarks for professional/grantmaking staff (p. 87) and administrative/support staff (p. 92) in the appendixes.
Grantmaking Trends
Family foundations were more likely than independent and other foundation types to fund beyond a single community, including multistate, national, and international efforts. They were also more likely to award grants benefiting minoritized racial and ethnic groups and Indigenous communities in the United States.
In terms of grant structure, family foundations were significantly more likely to provide single-year general operating support and were more likely than “other” foundation types to award project-specific grants (50% compared with 7%).
While general operating support remains common, it is most often awarded for a single year. This is an important benchmark as boards consider multiyear funding practices to outsize their impact.
Operating Costs and Financial Benchmarks
For foundations looking to compare financial management practices, the appendixes provide detailed operating data by asset size, including:
- Total operating and administrative expenses (p. 103)
- Charitable operating expenses (p. 107)
- Charitable expenses as a percentage of qualifying distributions (p. 111)
- Average charitable operating costs for each $1 in grants (p. 115)
These tables offer practical context for conversations about payout, administrative efficiency, and long-term sustainability.
Data to Guide Today’s Decisions
The 2026 FOMR highlights both enduring trends and emerging shifts across lean philanthropy. Family leadership remains prominent in governance and executive roles, and many foundations continue to engage the next generation in meaningful ways. At the same time, patterns in grantmaking, compensation, benefits, and operations vary across foundation types.
For boards reviewing governance structures, planning for leadership transitions, or reassessing funding and compensation practices, the report provides practical benchmarks to support informed decision-making.
The 2026 Foundation Operations and Management Report is the go-to benchmarking report for foundations with few or no staff. Drawing on survey data from lean funders, it offers a comprehensive look at board practices, staffing structures, grantmaking approaches, financial management, and more. Get your copy today.
About the Author
Hannah Smith is the Manager of Editorial and Publications at Exponent Philanthropy, where she oversees blogs, publications, and communications that inform and engage lean funders.