# Grant-making by foundations rose to record £3.7bn in 2020-21 - Link: https://fundraising.co.uk/2023/05/26/grant-making-by-foundations-rose-to-record-3-7bn-in-2020-21/ - Published: 2023-05-26T08:30:00+01:00 - Author: Melanie May **Grant-making by the top 300 foundations increased by 13% in real-terms in 2020- 21 from the previous year, according to research from the Association of Charitable Foundations (ACF).** Reaching a record £3.7bn, this was well above the average annual growth of grant- making over the five years prior to 2020-21 (5.7%).  The findings come from [Foundation Giving Trends 2022](http://acf.org.uk/foundation_giving_trends_22), which analyses data from the top 300 independent philanthropically-funded charitable foundations, listed by levels of grant-making.  The research was carried out by Dr Cat Walker of The Researchery and supported by Pears Foundation. ## Advertisement The report’s focus is on foundations’ responses to the Covid-19 pandemic in 2020- 21, with a spotlight on how foundations tackled the disproportionate impact on communities experiencing inequity, and especially racial inequity.  The research found that more than half of the top 300 (57%) increased their grant- making in real terms. This was also seen in both family and corporate foundation giving. Family foundation giving grew by 11%, with corporate foundation giving reaching a new high of £239m – an increase of 17%. **Other key findings:** * Total spending grew by 8%, to £5.1bn between 2019-20 and 2020-21 * Reported total income was 10% lower than in the previous years, at £3.8bn. Falls were seen in voluntary income (although not across the board) and investment income where there is a growing shift towards total return approaches * Total assets grew in 2020-21 by 19% to a new high of £87.3bn * Combined support and governance costs remains stable at around 6% of total spending * Some foundations also redistribute the funds of others, with government and co- funding contributing £70mn to grant-making by the top 300 in 2020-21. Commenting on the report, ACF chief executive Carol Mack OBE said: > “This year’s research shows how foundations stepped up during the Covid-19 pandemic. > They increased their spend on grant-making – making over £430mn in covid-related > grants to charities from 2019-21. Simultaneously foundations responded by adapting > their grant-making practices; collaborating with other funders, pooling funds > and flexing their grant-making, all while keeping their own costs stable.” Dr Catherine Walker commented: > “Since its inception (in its current form) in 2014, Foundation Giving Trends has > provided valuable evidence that helps us understand the contribution independent > money makes to the wider funding landscape, providing insightful, robust data > on which foundations the wider voluntary sector, government policy-makers, and > the academic community can rely.” _ * **[New foundation launches with initial £10mn for engineering-related causes](https://fundraising.co.uk/2023/06/15/new-foundation-launches-with-initial-10mn-for-engineering-related-causes/)**( 15 June 2023) * **[Banking group launches £2.5mn foundation](https://fundraising.co.uk/2023/06/27/banking-group-launches-2-5mn-foundation/)**( 27 June 2023) * **[Second funder this month announces plans to spend assets & close](https://fundraising.co.uk/2023/07/21/second-funder-this-month-announces-plans-to-spend-assets-close/)**( 21 July 2023)