| SIC Codes: | 6732 |
| NAICS Codes: | 813211 |
Organizations in this industry manage endowments and award grants to a variety of recipients; some endow a single entity, such as a museum or university. Major organizations include the Ford Foundation, the Bill & Melinda Gates Foundation, the J. Paul Getty Trust, the William and Flora Hewlett Foundation, and the Robert Wood Johnson Foundation (all based in the US), as well as the IKEA Foundation (the Netherlands) and Wellcome Trust (the UK).
Demand is driven by a wide range of local, regional, and national problems that impact public policy, civic life, social justice, and various economic, political, and cultural issues. The profitability of individual foundations depends on effective fundraising and strategic investments. Large foundations have advantages in broad donor support and geographic reach, as well as significant investment income. Small foundations can compete effectively by offering flexible philanthropic services that target localized needs. The industry is fragmented: the 50 largest foundations account for 35 percent of revenue.
Project areas that receive the most money in annual grants from foundations include health and human services (40 percent), education (20 percent) and arts and culture (15 percent), according to the Foundation Center. Grantmaking foundations allocate moneys to and monitor the work of recipients as well as identify potential grantees for future disbursements. Employees and trustees with subject matter and advocacy knowledge are particularly important to organizations. In addition, technology is an important factor in grants management. Grantmakers rely on specialized software for reviewing grant applications, tracking reporting requirements and grantee payments, and creating reports.