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The philanthropic sector in the US, particularly in states like Arizona, is characterized by a mix of established foundations and emerging initiatives. Focus areas increasingly include impact investing, strategic partnerships, and addressing systemic issues. Economic fluctuations and evolving donor preferences influence grantmaking strategies. Technology plays a growing role in outreach and operational efficiency.
Total Assets Under Management (AUM)
Total Grantmaking by Foundations in United States
~Approx. $96.34 billion (2022)
(3.8% CAGR)
- Grantmaking increased across most foundation types. - Health and education remain top funding priorities. - Support for social justice initiatives is growing.
1.2 trillion USD
AI and machine learning can automate grant application review, identify high-impact projects, and predict grant effectiveness, streamlining philanthropic operations and enhancing data-driven decision-making.
Blockchain technology offers enhanced transparency and traceability for donations and grant disbursements, ensuring funds reach their intended beneficiaries and building greater donor trust.
Advanced analytics and integrated data platforms can provide real-time, comprehensive insights into the social and economic impact of philanthropic investments, allowing for more strategic allocation of resources.
The U.S. Securities and Exchange Commission (SEC) adopted new rules in March 2024 requiring public companies to disclose certain climate-related information in their registration statements and annual reports.
While primarily for public companies, this rule could indirectly influence philanthropic foundations by setting new standards for ESG reporting and potentially increasing expectations for transparency in climate-related grantmaking and investments for foundations with substantial endowments.
States periodically update their nonprofit corporation acts to streamline governance, clarify operational requirements, and ensure compliance. While not a single federal act, state-level changes often reflect broader trends.
Updates to state nonprofit acts (like those from the Arizona Corporation Commission) could alter governance requirements, financial reporting standards, or fundraising regulations, directly impacting the Flinn Foundation's operational compliance and administrative burden.
The IRS continues to issue guidance and propose regulations around Donor-Advised Funds (DAFs) focusing on payout requirements, reporting, and permissible distributions to ensure DAFs serve charitable purposes.
Changes in IRS guidance on DAFs could influence how foundations structure their giving, potentially increasing payout requirements or affecting the types of organizations that can receive grants, impacting The Flinn Foundation's grantmaking flexibility.
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