Each year, Exponent Philanthropy surveys lean foundations from across the country to identify trends, challenges, and opportunities in philanthropy. The 2025 Foundation Operations & Management Report (FOMR) provides essential benchmarking data on leadership, governance, grantmaking, and investments, helping funders make informed decisions to maximize their impact.
This year’s findings highlight evolving leadership approaches, increased flexible funding, and a growing focus on equity. However, gaps remain in areas like multiyear funding and disability inclusion—leaving room for improvement. Here are key insights from the 2025 report.
Catalytic Leadership in Action
Philanthropy is no longer just about writing checks. Many funders are expanding their role by using their networks, expertise, and influence to drive systemic change. The 2025 FOMR highlights the rise of Catalytic Leadership in Philanthropy (CLIP)—a mindset where funders move beyond traditional grantmaking to build relationships, advocate for change, and leverage non-grant assets for community-wide impact.
Key Takeaways:
- 68% of funders say they maintain authentic relationships with the communities they serve, an increase from past years.
- 65% collaborate with other funders, recognizing that pooled funding and shared learning can lead to greater impact.
- 62% of funders streamlined their grant application requirements, while 58% simplified reporting requirements, reducing administrative burdens on nonprofits.
Equity and Inclusion: Progress and Challenges
The philanthropic sector has made strides in advancing equity, but there’s still significant room for improvement—especially in areas like disability inclusion. While board diversity is increasing, most foundations have not yet adopted formal strategies for advancing inclusion within their grantmaking and operations.
Key Takeaways:
- Board diversity is improving—the percentage of all-white boards has dropped to 58%, down from 74% in 2018.
- 34% of funders consider racial equity highly relevant to their mission, while 38% say it’s somewhat relevant.
- Only 7% of funders have implemented disability inclusion strategies, highlighting a significant gap.
Strengthening Leadership and Compensation
The 2025 FOMR also highlights shifts in staffing and compensation trends. Salaries have increased across all roles, reflecting an effort to attract and retain talent despite economic pressures. However, challenges persist, particularly in gender pay disparities.
Key Takeaways:
- CEO salaries increased by 6.2%, professional/grantmaking staff saw a 4% salary increase, while administrative/support staff salaries grew by 4.1%.
- The gender wage gap widened, with women earning 27% less than male counterparts in CEO role
Grantmaking Trends: Flexibility Matters
General operating support (GOS) has gained traction as funders increasingly recognize the value of unrestricted funding. However, multiyear commitments remain low, leaving nonprofits with uncertainty about long-term sustainability.
Key Takeaways:
- 75% of funders offer single-year operating grants, but only 28% provide multiyear general operating support.
- The average grant size is $74,981, supporting a range of communities, though urban areas continue to receive the most funding.
Looking Ahead
The 2025 FOMR offers a comprehensive look at how funders are adapting to meet evolving challenges. From strengthening board governance and compensation practices to expanding collaboration and investment strategies, the report provides key benchmarks to inform decision-making. As funders navigate shifting priorities, embracing transparency, flexibility, and equity will be essential for maximizing impact. Whether refining internal operations, deepening community engagement, or rethinking grant structures, these insights serve as guideposts—not checklists—to enhance your philanthropic impact and build more effective, sustainable giving strategies.
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About the Authors
Brendan McCormick is the associate director of research and publications at Exponent Philanthropy. He works with members, partners, and staff to develop resources and research on our funder community.
Hannah Smith is the manager of editorial and publications at Exponent Philanthropy, overseeing blogs, publications, and communication strategies. She works to engage audiences through thoughtful content, PR efforts, and equity-focused initiatives.