| SIC Codes: | 6732 |
| NAICS Codes: | 813211 |
The grantmaking foundations sector in the US includes nearly 10,000 establishments with combined annual revenue of $70 billion. Major foundations include the the Bill & Melinda Gates Foundation, Ford Foundation, The Pew Charitable Trusts, Lilly Endowment, and The Research Foundation of The City University of New York. The industry is fragmented: the 50 largest foundations account for 35 percent of revenue.
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 capital-intensive: average annual revenue per worker for a typical foundation is nearly $700,000.
Major services include social assistance and licensing of rights to intellectual property. 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.