Each year, Exponent Philanthropy surveys lean foundations from across the country to identify trends, challenges, and opportunities in philanthropy. The 2026 Foundation Operations & Management Report (FOMR) provides essential benchmarking data on leadership, governance, grantmaking, and investments, helping funders make informed decisions to maximize their impact.
What’s New in the 2026 FOMR?
This year’s report includes new data to reflect how foundations with few or no staff are evolving. New insights include how lean funders align with Catalytic Leadership in Philanthropy (CLIP), trends in board and staff demographics, next-generation engagement, and how foundations approach grant application processes.
Lean Funders Embody Catalytic Leadership
For the first time, the FOMR captures how lean funders see their work through the lens of Catalytic Leadership in Philanthropy (CLIP)—a values-driven approach that leverages relationships, non–grant assets, and proven practices to create long-term, systems-level change in the communities they serve.
The findings are notable: 39% of participating foundations reported that the CLIP framework is largely or completely aligned with their philanthropic approach. This suggests that many lean funders are already embracing catalytic leadership in practice, centering relationships, trust, and strategic focus as core drivers of impact.
Discover Our Intro to Catalytic Leadership Cohort Program »
Perceptions of Representation
The 2026 FOMR continues to track board and staff demographics, and introduces a new question: How representative do foundations believe their leadership truly is of the communities or issue areas they serve?
For the first time, we asked foundations to reflect on representation across race and ethnicity, gender, disability status, and economic background. The results reveal both areas of confidence and opportunities for growth.
Board Representation
- 56% believe their board’s racial and ethnic composition is representative
- 85% believe their board is representative in terms of gender
- 51% believe their board is representative in terms of disability status
- 39% believe their board reflects the economic backgrounds of the communities they serve
Staff Representation
- 83% believe their staff is representative in terms of gender identity
- 62% believe their staff reflects racial and ethnic identity
- 52% believe their staff is representative in terms of disability status
- 49% believe their staff reflects economic background
Together, these findings offer a snapshot of how foundations with few or no staff perceive representation within their own leadership, and where continued reflection and action may be needed.
Formal Pathways for Next Gen
This year’s report highlights how family foundations are intentionally preparing the next generation for leadership. Nearly three-fourths (71%) reported actively engaging next–generation family members in foundation work, signaling a strong commitment to continuity, shared values, and long-term stewardship.
Engagement is most often structured through formal roles:
- 60% include next-generation members as board members
- 25% report next generation members serving in board leadership roles (such as chair, treasurer, or secretary)
- 24% engage them as advisory or junior board members
These findings suggest that many family foundations are moving beyond informal involvement and creating defined pathways for leadership, building experience, responsibility, and governance skills early on.
Grant Application Processes
The 2026 FOMR also sheds light on how foundations with few or no staff manage the grant application process, an operational choice that shapes both efficiency and accessibility.
Just over half (55%) of participating foundations reported receiving applications through an online grants portal. Nearly one-fourth (24%) collect proposals via email, while 18% still accept paper applications. Notably, 14% indicated they do not use a formal written application at all.
When it comes to who can apply, practices vary:
- 35% accept applications by invitation only
- 30% maintain a fully open application process
- 23% require a letter of intent before inviting a full proposal
These findings highlight the diverse ways lean foundations balance structure, accessibility, and administrative capacity—revealing both opportunities for streamlining and questions about how process design influences who seeks and receives funding.
Key Findings We Continue to Report
Alongside new data, the 2026 FOMR continues to track essential trends in compensation, equity, giving patterns, mission investing, and more—offering year-over-year insight into how lean foundations are evolving.
Staff Salaries Increased
Matched salary data show a statistically significant upward trend across roles, including CEOs/top administrators, professional and grantmaking staff, and administrative/support staff. On average, reported increases exceeded expected cost-of-living adjustments, suggesting that many foundations are investing in talent retention.
Racial Equity Remains Steady in Mission Relevance
Foundations that have prioritized equity continue to do so. One-third (33%) reported that racial equity is very relevant to their mission. Among foundations that participated in both the 2024 and 2025 surveys, there were no significant shifts in how racial equity factored into their mission, indicating sustained commitment rather than short-term focus.
Lean Funders Are Giving Locally
Lean funders remain deeply rooted in their communities. Eighty percent (80%) of respondents awarded grants within their local area, defined as roughly a 50-mile radius. Among those funders, an average of 74% of total grant dollars stayed local. This concentration underscores the strong place-based orientation that continues to define lean philanthropy.
Mission Investing Yields Comparable Returns
Foundations engaging in mission investing are not sacrificing financial performance. In 2024, mission-investing foundations reported average returns of 10%, closely aligned with the 11% returns reported by foundations not practicing mission investing. The data reinforce that aligning investments with mission can coexist with competitive performance.
Insights for the Year Ahead
The 2026 Foundation Operations and Management Report delivers benchmarking data and context to help foundations with few or no staff navigate funding shifts and continued uncertainty. Grounded in peer insights, it offers practical guideposts to assess where you stand and identify opportunities to strengthen your impact. Get your copy today.
About the Author
Brendan McCormick is the Director of Research and Publications at Exponent Philanthropy. He works with members, partners, and staff to develop resources and research on our funder community.