Classified as “private foundations” by the IRS, family foundations are those in which family members have a substantial role in the foundations’ governance.

The oldest family foundations were created in the late 19th century; many still exist. Through their philanthropy, families aspire to achieve a lasting and positive impact on society. They give not only their money but their time, talent, passion, and commitment to the communities and institutions they support.

Today, the US has approximately 38,000 family foundations, which:

• Represent more than half of all private foundations.
• Account for a major portion of foundation giving in the United States.
• Make grants totaling more than $18.5 billion per year.
• Have assets totaling $294 billion.
• Comprise more than 33 percent of the Council’s membership.

How—and What—They Fund

• Most family foundations concentrate their giving locally in their communities. However, a growing number are now funding nationally and internationally.
• Some families give to help others affected by tragedies they themselves have borne—fighting cancer, domestic violence, and the like. Others give to repay the institutions that helped them prosper—such as education, social services, the arts, and community groups.
• Some have narrow missions, funding in only a limited number of areas.  Others have broad missions that can encompass a wide range of interests. Many family foundations are unstaffed, so family members who make up the board take on the responsibility of all grantmaking, plus management and governance.
• More than three-fifths of family foundations have assets of less than $1 million.

Committed to Integrity

To have greater impact and expand their reach, some family foundations join in collaborations with other funders. Many also participate in their local regional association of grantmakers and various affinity groups. The Forum of Regional Associations of Grantmakers  represents 31 of the largest regional associations in the United States. Affinity groups of grantmakers represent a variety of different issues and population groups. Currently, the Council recognizes affinity groups.

To help families be responsible stewards of their foundation resources, the Council collaborated with the field to develop Stewardship Principles for Family Foundations. Launched in 2005, these principles and best practices help foundations strive for excellence. Review the principles here.