For decades, many foundations have followed a familiar rhythm: preserve capital, make steady grants, and exist in perpetuity. Today however, as climate change accelerates, inequality deepens, and democracy faces strain, more leaders are asking: What if we used every available resource now, when it’s needed most?
This is the power of a spend-down strategy: a deliberate commitment to unleash a foundation’s full corpus within a defined time horizon, channeling resources towards near-term impact where they matter most. According to the National Center on Family Philanthropy, foundations actively spending down have increased from 9% in 2015 to 13% in 2025, with nearly 30% considering the approach.1
Our new report, The Upward Trend of Spending Down, distills more than a decade of experience guiding foundations through this momentous choice:
- Five pillars for shaping a spend-down strategy
- Lessons from a foundation in transition
- How capital deployment models reshape portfolio management
Spend-down is more than a financial decision; it is a profound statement of purpose. Done with intention, it can ignite systemic change, fuel movements, and leave a legacy defined by action.
The question isn’t whether your foundation can make a difference. It is: What kind of difference do you want to make, and when?
Source: NCFP Trends 2025
