Grantmaking is a valuable way for organizations to make an impact in their communities. From inspiring younger generations to providing opportunities to communities in need, your organization can design programs that have a meaningful positive effect.
So, how do you create the biggest splash with your resources? We recommend a strong grant management program.
Whether you’re a seasoned grantmaker or new to the scene, we’ve compiled a robust list of grantmaking statistics so you can better understand the trends that are shaping philanthropy. With market dynamics and technologies shifting from year to year, the best grant management programs are those built on a foundation of knowledge and data, supported by technology.
You want to craft grants with the greatest overall opportunity, equitability and impact. You want to build powerful programs even as inflation challenges your operation. To do this, let’s dive into the top grant management statistics of 2022:
2022’s Most Vital Grantmaking Statistics
- Grant giving is at record highs
In 2021, giving by foundations, which includes grants made by independent, community and operating foundations, reached $90.9 billion. This is its highest-ever dollar amount, up from $88.55 billion the year prior, according to the Giving USA 2022 annual report.
Both in 2020 and 2021, grants comprised 19% of all charitable giving.
In 2021, grant giving was the second-biggest category of charitable giving behind contributions from individuals. Foundations gave more than bequests ($46 billion) and corporations ($21 billion) combined.
Donations to grantmaking foundations were 13%, tied with donations to human services, and below donations to education (14%) and religion (27%).
- Private foundations award majority of grants
Private foundations are the biggest grant givers by far. The top three – the Bill & Melinda Gates Foundation, The Ford Foundation and Lilly Endowment – have a combined $62 billion+ in investment assets, according to P&I. Those three alone comprise 26% of the $229 billion in investment assets managed by the top 50 foundations.
However, smaller foundations are pulling their weight. Of the roughly 100,000 private non-operating foundations in the US, just 2% have more than $50 million in assets, according to Foundation Source. In fact, foundations with assets between $1 million and $5 million represent the vast majority of all US-based foundations.
In 2020 and 2021, grant giving flourished. In 2020, foundations gave away an average of 2.4% more than their minimum distribution requirement, according to Foundation Source. In 2021, foundation assets stood at a record $1.2 trillion, according to Foundation Advocate.
However, foundation assets retracted by $235 billion in the first half of 2022. The sharp decrease was attributed to weak global stock markets and falling bond prices.
- Grant management software on track for double-digit growth
Grant management software market revenue is forecast to grow to $2.9 billion globally by 2027, compared with $1.31 billion in 2020, according to Insights Partners. The market is expected to increase at a compound annual growth rate (CAGR) of 12%. A rising number of non-governmental organizations (NGOs), associations, research projects in universities, and Corporate Social Responsibility (CSR) activities in developing countries are among the key drivers of grant management software adoption.
Fueling this increase in technology is an overall trend, in part influenced by the COVID-19 pandemic, of nonprofits adapting to virtual programming and fundraising.
- More grant makers supporting diversity, equity and inclusion (DEI)
With so much awareness emerging over the last few years about racial injustice, sparked from unjust deaths and the social movements they inspired, there’s been more action in support of DEI in grant management over the past year.
After an Executive Order signed by President Joe Biden in 2021 set out plans for the federal government to advance racial equity and support for underserved communities, a number of federal departments committed to DEI strategies. The Department of Education and Department of Energy, among others, began releasing inaugural equity action plans that impact their grant management programs.
Separately, a consortium of more than 100 nonprofit healthcare funders with a collective $1 billion-plus in annual giving, launched a grantmaking initiative this June to increase DEI in the biomedical workforce, according to NPT.
Maximize Your Community Impact
These 2022 grantmaking trends indicate a market for philanthropy that’s ripening for growth. By standing on a strong grant management foundation, your organization will more effectively deliver meaningful programs to the communities you care about.
With a grant management platform such as ZengineTM by WizeHive supporting your efforts, you’ll spend less time navigating administrative tasks and more time creating impact. Discover how we can help you more efficiently manage your grant programs: Schedule a demo today.