What kinds of nonprofits do foundations support?

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.

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.