Understanding the broader landscape of philanthropic grantmaking — where the money comes from, where it goes, how practice is evolving — helps funders position their programmes and make more informed strategic decisions. This guide draws on publicly available data about giving patterns and emerging trends in grantmaking practice.
New Zealand. New Zealand's philanthropic sector is significant relative to the country's size. Community trusts (including gaming trusts, electricity trusts, and community foundations) collectively distribute several hundred million dollars annually. Foundations and charitable trusts add further philanthropic capital. The New Zealand Government also distributes substantial grant funding through departments and agencies. Exact sector-wide figures are incomplete due to the fragmented nature of the sector, but the total annual charitable distribution is estimated in the billions.
Australia. Australia's philanthropic sector is considerably larger. Private ancillary funds (PAFs) and public ancillary funds (PuAFs) together held over $30 billion in assets by the early 2020s. The Not-for-profit sector broadly (which includes grant-making bodies) accounts for around 8-10% of GDP. Gaming-derived giving (state government lotteries, TABs, and pokies distributions) is also significant.
Global context. The US philanthropic sector is the world's largest, with total charitable giving exceeding $500 billion annually. US foundation giving alone accounts for around $90-100 billion annually. The UK has a significant charitable sector with major foundations including the Wellcome Trust (one of the world's largest), National Lottery funding bodies, and many private foundations.
Growth of multi-year, unrestricted funding. There is a sustained trend among leading funders — reinforced by trust-based philanthropy advocates and the COVID-19 experience — toward multi-year, unrestricted core funding rather than short-term project grants. The evidence that unrestricted funding produces better outcomes for grantees and funders is growing.
Increasing focus on equity. Funders globally are examining whether their grantmaking reaches the communities most in need and least well-served by mainstream institutions. Equity audits of grant portfolios — examining who gets funded, who doesn't, and why — are increasingly standard practice among larger foundations.
Participatory approaches. There is growing interest in participatory grantmaking — involving communities and grantees in decision-making — as both an equity practice and an effectiveness strategy. Participatory approaches range from community advisory panels to full community control of grant decisions.
Trust-based philanthropy. The trust-based philanthropy movement — which advocates for reducing application and reporting burden, providing multi-year unrestricted funding, and building genuine funder-grantee relationships — has gained significant traction since around 2018. Its principles are now cited by many major foundations.
Data and impact measurement. The field has moved from a focus on outputs (how many services delivered) toward outcomes (what changed for beneficiaries) and increasingly toward impact (what difference did the funder's grant specifically make, beyond what would have happened anyway). Advances in outcomes measurement frameworks and the availability of administrative data have made more rigorous impact assessment possible.
Technology adoption. The grants management software market has expanded significantly as funders have moved from spreadsheets to purpose-built platforms. COVID-19 accelerated this transition — remote working made manual paper-based processes untenable for many funders. The market now includes purpose-built platforms at every scale from small community foundations to large national programmes.
Corporate social responsibility growth. Corporate foundations and CSR grant programmes have grown significantly, driven by stakeholder expectations, ESG investment frameworks, and genuine executive interest in community investment. The integration of corporate giving with sustainability reporting has increased the scrutiny and sophistication of corporate grantmaking.
Funding concentration. In most markets, a significant proportion of philanthropic giving is concentrated in relatively few large foundations. Smaller and community-based funders often lack the resources for sophisticated programme design and evaluation, creating a two-tier sector.
Reporting burden. Despite trend-level movement toward reduced reporting requirements, many grantees — particularly smaller charities — still face significant reporting burdens from multiple funders. The cumulative reporting load from multiple funders with different reporting requirements, templates, and timelines is a recognised challenge.
Sector sustainability. Many non-profit organisations funded through grants face structural financial challenges — chronic underfunding of core costs, unpredictable funding cycles, and difficulty maintaining reserves. The distinction between programme funding and core cost funding is a longstanding tension in philanthropic practice.
Demographic change. The intergenerational transfer of wealth — from the Baby Boomer generation to successors — is the largest wealth transfer in history. How this wealth flows into philanthropy, and whether it's distributed through family foundations, donor-advised funds, or direct gifts, will significantly shape the philanthropic sector over the next two decades.
The evidence base on effective grantmaking practice is growing:
Multi-year grants produce better outcomes. Multiple studies and practitioner assessments suggest that multi-year grants produce better outcomes than equivalent annual grants — because grantees can plan, invest in people, and take longer-term approaches.
Unrestricted funding increases impact. Grantees with unrestricted core funding consistently report being able to do more, more effectively, than those whose funding is restricted to specific activities.
Relationships matter. Trust-based approaches that invest in funder-grantee relationships, rather than transactional grant cycles, are associated with better communication, more honest reporting, and better identification of problems before they become crises.
Administrative burden reduces effectiveness. High compliance and reporting burden reduces the proportion of grant resources that goes to programme delivery and diverts capacity from the work the funder wants funded.
Capacity building funding is underused. Funding for organisational development, governance, and financial management capacity produces long-term returns but is systematically underfunded relative to programme grants.
Tahua provides grants management software for funders who want to put best practice into practice — with trust-based programme design, reduced reporting burden, and data collection that generates genuine insight.