What kinds of nonprofits do foundations support?

An analysis of the types of nonprofits that foundations give to and why some industries receive more grants than others.
People writing and receiving different checks for grants, by Dalle

Foundation grants can be an important, though sometimes overlooked, source of income for nonprofits, and are used to support a wide range of activities, including program development, general operations, research, and infrastructure projects. With 1.4 million active charities in the U.S., it's also no secret that competition for nonprofit grants can be stiff. The fact is, some industries receive more support than others, and certain types of foundations tend to award grants to specific kinds of nonprofits. Understanding why this is the case, and looking at the grant trends for the different foundation types, can help you decide where to focus your efforts and increase your chances of receiving a grant.

Why some types of nonprofits receive more funding than others

There are a couple of reasons why some nonprofit industries receive more foundation grant funding than others. One reason is that current events can generate enhanced interest in specific issues, which can lead to more funding from individuals and foundations. For example, the COVID-19 pandemic had a big impact on funding to nonprofit organizations. Grants to human service organizations (such as emergency assistance providers and foster care providers) grew as a result of increased attention by the media and general public. Conversely, many arts, culture and humanities organizations (like museums and performing arts centers) saw their funding decrease during this time.

Another reason is that some industries may have more established networks of donors and volunteers, making it easier for them to secure funding. This is often the case with larger organizations, such as universities or hospitals, which have more resources and capacity to apply for and secure grants, while smaller organizations may struggle to compete for funding.

A breakdown of grantmaking activity by foundation type

It can be helpful to look at grantmaking trends among foundations to better understand where your nonprofit might have the best chance to succeed in being awarded a grant. Many foundations and grantmaking organizations have specific causes they focus on, and will therefore prioritize funding for organizations working in those areas.

The graphs below show the top-10 types of nonprofits supported by different kinds of foundations in the most recent year.

Which types of nonprofits corporate foundations give to

Corporate foundation grantee typeNumber of grantees
Food banks
 
436
 
Universities
 
406
 
School foundations
 
381
 
Homeless shelters
 
362
 
Animal shelters
 
334
 
Christian organizations
 
322
 
Multiservice human service organizations
 
303
 
Food distribution programs
 
286
 
Youth development programs
 
284
 
High schools
 
271
 

Which types of nonprofits private foundations give to

Private foundation grantee typeNumber of grantees
Universities
 
9,169
 
Food banks
 
8,198
 
Animal shelters
 
7,343
 
School foundations
 
6,824
 
Christian organizations
 
6,800
 
High schools
 
6,127
 
Homeless shelters
 
5,916
 
International humanitarian organizations
 
5,481
 
Elementary schools
 
4,693
 
Multiservice human service organizations
 
4,685
 

Which types of nonprofits public foundations give to

Grantee typePublic foundation grantee type
Food banks
 
367
 
Universities
 
366
 
Multiservice human service organizations
 
356
 
School foundations
 
352
 
General hospitals
 
345
 
Homeless shelters
 
341
 
Youth development programs
 
308
 
Boys and girls clubs
 
306
 
Christian organizations
 
290
 
Domestic violence shelters
 
271
 

Which types of nonprofits community foundations give to

Community foundation grantee typeNumber of grantees
Multiservice human service organizations
 
470
 
Food banks
 
465
 
School foundations
 
455
 
Domestic violence shelters
 
402
 
Christian organizations
 
399
 
Historical societies
 
383
 
Homeless shelters
 
382
 
Animal shelters
 
379
 
Boys and girls clubs
 
373
 
Senior centers
 
353
 

Looking at these graphs, it's clear that certain types of nonprofits receive strong grant support from all foundation types. This is true for food banks, school foundations, homeless shelters, and christian organizations. We also see that universities are highly prioritized for all foundation types, except community foundations. Similarly, animal organizations receive a large number of grants from corporate foundations, private foundations, and community foundations, but not public foundations. It's interesting to note that domestic violence shelters are within the top-5 types of organizations funded by community foundations, but don't appear within the top-10 for any other foundation type.

Check out our insights article, How to find grants for your nonprofit, for more information about overall grantmaking trends, identifying potential funders, and tips about the grant application process.

Methodology

Cause IQ digitizes and cleans electronic and paper / scanned Form 990s for over 1.8 million IRS-registered tax-exempt organizations. For active charities, Cause IQ looked at 501(c)(3) organizations currently setup to receive tax-deductible donations.

The different types of foundations are determined by NTEE code, with private foundations being T20, corporate foundations being T21, public foundations being T30, and community foundations being T31. The grantee types are also determined by NTEE codes. Click on the grantee type and scroll to the bottom of the page, to the "Methodology" section on that page, to determine which NTEE code corresponds to that nonprofit grantee type.

Article originally published on January 26, 2023.

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