Top trends in philanthropy and what they mean for grantmakers

Broader forces can often influence the philanthropy ecosystem. These forces, which can be social, political, technological or economic, can change donor behaviour and priorities. They can alter resource allocation models and application evaluation practices.

Being aware of new trends in philanthropy and their implications can help grantmakers adapt and maximise the impact of their programs. Such understanding can balance power dynamics and drive the development of new capacities.

Eager to allocate resources with relevance, equity and impact? Let’s explore the top philanthropy trends reshaping the giving sector in 2025, and unpack what they mean for grantmakers.

1. Participatory grantmaking

Lately, the philanthropy ecosystem has continued to shift from the traditional top-down decision model of grantmaking. Funding organisations and grantmakers are increasingly prioritising empowerment, transparency and inclusivity by actively involving target beneficiaries in determining community needs and grant allocations, guaranteeing equity and relevance.

A strong example of participatory grantmaking in action in 2025 is Borealis Philanthropy’s $4.45 million in grants being awarded by leaders from BIPOC, disabled and LGBTQ+ communities. Another is the Resolve Foundation’s engagement of community leaders and members of its Fellowship Alumni to discuss its Opportunity Fund.

The growing popularity of participatory grantmaking in 2025 is a signal to grantmakers to recognise their role as facilitators instead of sole decision-makers and expand their understanding of participatory practices.

2. Climate funding

Multiple climate disasters such as extreme heatwaves, wildfires, floods and ocean temperatures in 2025 have made climate risks an urgent humanitarian crisis. With major corporations withdrawing from climate alliances or dialling down their commitments, climate funding is on the rise.

Grantmakers can develop grant criteria that also cater to community adaptation to unavoidable climate events and climate justice for environmental breakdown—cutting emissions shouldn’t be the only focus. Flexibility in grant management is crucial to fill the recent gaps in climate funding.

3. Skills-based volunteering

Thanks to its win-win outcome, skills-based volunteering has become a leading corporate philanthropy trend this year. Instead of just donating money, employees apply their professional expertise to support nonprofits, contributing value while sharpening their skills.

The trend is driven by:

• Employees’ eagerness to see their skills power real change
• Nonprofits’ growing need for corporate skill sets to build their capacity
• Today’s remote and hybrid work enablement, which allows the mobilisation of global talent.

The rise of skills-based volunteering presents grantmakers and foundations with the opportunity to partner with corporations. Grantmakers can fund hard costs such as software and equipment while employees contribute their expertise.

4. Use of AI in application evaluation

Due diligence is a necessity for grantmakers. But thoroughly assessing grant applications can lead to loss of time, particularly in situations where funding is urgently needed. Thankfully, the steady surge of artificial intelligence has been evident in the philanthropy sector, streamlining the application evaluation process in 2025.

Recent studies by the Technology Association of Grantmakers reveal that 81% of foundations report notable use of AI within their organisation. Early this year, the Patrick J. McGovern Foundation officially released Grant Guardian, a free AI-powered platform for financial due diligence. More than 130 charitable organisations currently use this tool to turbocharge application assessment.

The growth of AI in philanthropy implies that grantmakers need to be literate in AI to understand its capabilities and limitations. It highlights the need to be wary of excessive dependence on AI tools; human oversight is still needed for funding decisions and recommendations.

5. Convenient giving and microphilanthropy

Easy giving and microphilanthropy have become popular with the coming of age of the digital generation. Being used to a mobile-first, instant world where payments are one tap away, Gen Z has a preference for convenience.

While many in this age background are either students or still early in their careers, they often make small contributions allowing them to exercise generosity without pressure on their finances.

These Gen Z philanthropy trends indicate that grantmakers need to adopt digital-first platforms at events, checkouts and across social channels to effectively collect these donations. Today’s micro-donors are potential major donors of tomorrow. Grantmakers and nonprofits can work to cultivate long-term relationships with these young philanthropists.

These new trends in philanthropy signal a new dawn for giving. Staying abreast of these emerging shifts will ensure grantmakers stay aligned with their missions, donors and beneficiaries.