Top philanthropic foundations: A primer

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In recent years, foundations have become increasingly involved in international development, financing projects in a wide array of sectors across several countries worldwide. As private philanthropy continues to gain ground, it becomes more and more important to identify the key players, what they finance, where they work and what direction they will take in the foreseeable future.

To shed more light on these organizations, Devex will be rolling out new content covering major foundations that have become invaluable partners to donor agencies, aid implementers and government institutions all over the world. Ahead of these articles, we have compiled a list of key private foundations that have made significant contributions toward global philanthropy.

The Bill & Melinda Gates Foundation continues to be the top private foundation in terms of its annual contributions, with an astounding $3.9 billion in total giving in 2014 and a $1.8 billion allocation toward global development in 2013. But while the Gates Foundation’s multibillion-dollar initiatives outstrip the rest, it is hardly the only foundation to infuse significant sums toward development.

Below we list some of the other major philanthropic foundations that you should know about. Their budget figures and grant disbursements are based on the most recent annual reports and financial statements submitted by the organizations. Not all of the foundations in this list, however, specified their international giving.

This list therefore should not be seen as a ranking of top foundations in international development, but as a resource to inform you of some of the foundations that are actively creating an impact on the global scale.

Aga Khan Foundation
Average annual budget: $325 million (total)

The Aga Khan Foundation’s main areas of focus are rural development, health, education, civil society and the environment. It works in resource-poor and remote areas in 16 countries around the world, with a particular focus on Asia and Africa, and a staff size of about 3,800.

The foundation is part of the Aga Khan Development Network, a group of 11 private, nondenominational , international agencies that each focus on different areas of development. The network has an average annual budget of $600 million for nonprofit development activities.

Bill & Melinda Gates Foundation
2014 Budget: $3.9 billion (total)

The Bill & Melinda Gates Foundation is currently the largest private foundation in the world with total grant payments of $32.9 billion since its inception, supporting interventions in more than a hundred countries worldwide.

Launched in 2000 by Microsoft founder Bill Gates and his wife Melinda, the foundation initially prioritized research and innovation in health and education and later expanded its focus to cover even wider global development concerns, including policy and advocacy. In 2013, the foundation spent $1.8 billion on global development projects in the areas of agricultural development, vaccine delivery and polio eradication.

In their latest annual letter, Bill and Melinda, on behalf of the foundation, stated their interest in creating breakthroughs in disease eradication, farming, mobile banking and online education over the next 15 years.

Carnegie Corporation of New York
2013 Budget: $123.3 million (total)

Established in 1911 by Andrew Carnegie, the Carnegie Corporation of New York aims “to promote the advancement and diffusion of knowledge and understanding” through its grant-making. Internationally, the corporation focuses on reducing direct threats to peace and security, and investing in global development in sub-Saharan Africa and Eurasia. International peace and security, higher education and research in Africa, and peace building in Africa comprise the foundation’s international programming.

Children’s Investment Fund Foundation
2014 disbursements: $122 million

The Children’s Investment Fund Foundation is a U.K.-based foundation focused on delivering large-scale, long-term transformational advances for children in areas of nutrition, child survival, education and climate. Since its establishment in 2004, the foundation’s endowment has grown to exceed $4 billion, with current multiyear grant commitments exceeding $550 million.

CIFF’s climate change programs are concentrated in areas with political leadership on the issue, such as in Europe, China and Latin America. Meanwhile, its nutrition, child survival and education programs focus on helping the poorest and most vulnerable in Asia and Africa. In 2014, CIFF, in partnership with the U.S. President’s Emergency Plan for AIDS, launched a $200 million initiative to enable 300,000 children living with HIV to receive antiretroviral therapy.

Clinton Foundation
2013 Budget: $294.7 million (total)

The Clinton Foundation has been working in the areas of poverty alleviation, global health, economic development, and climate change and the environment since it was established by former U.S. President Bill Clinton in 2011.

To meet its objectives, the foundation has set up different initiatives, each focusing on a specific development challenge. Among these, the Clinton Health Access Initiative had the highest development budget for activities in developing countries in 2013, exceeding $80 million. CHAI focuses on health systems strengthening and expanded care and treatment for HIV, AIDS, malaria and tuberculosis.

Ford Foundation
2013 Budget: $569.85 million (total)

The Ford Foundation started in 1936 when Edsel Ford, son of Ford Motor Co. founder Henry Ford, provided $25,000 for “scientific, educational and for charitable purposes.” Today, it has net assets of $11.9 billion and has distributed $16.3 billion in grants. The foundation annually approves around 1,400 grants in Latin America, the United States, Asia and Africa. These grants are in line with the foundation’s three focus areas: democracy, rights and justice; education, creativity and free expression; and economic opportunity and assets.

In 2013, the foundation provided $123 million to human rights initiatives, including advancing racial justice and minority rights, reforming civil and criminal justice system, and protecting rights of women and other marginalized groups.

Gordon and Betty Moore Foundation
2013 Budget: $275 million (total)

The Gordon and Betty Moore Foundation was established in 2000. Headquartered in California, the foundation mainly focuses on environmental conservation, patient care and the development of new technologies through scientific research. Locally, it also provides support to scientific museums and conservation efforts in the San Francisco Bay Area.

In 2013, its grant budget reached $275 million, of which $119 million was allocated to the environment sector. Meanwhile, areas of health and scientific research each received investments of $49 million and $87 million, respectively.

MasterCard Foundation
2013 Budget: $171.6 million (total)

Established in 2006 through the shares gifted by MasterCard Worldwide, the MasterCard Foundation has net assets exceeding $9 billion. In 2013, it disbursed $172 million to partner organizations in 57 countries.

The foundation’s work focuses on promoting financial inclusion and advancing youth education as a means of driving economic growth in developing countries. Its financial inclusion program aims to expand access to microfinance and other financial services, while its youth learning programs focuses on scaling access to education, developing the skills of out-of-school youth and connecting youths to jobs.

Recently, the foundation launched a $50 million challenge fund, which will be used to extend financial services to people living in poverty in sub-Saharan Africa. Based in Toronto, Canada, the foundation operates independently of MasterCard Worldwide.

Open Society Foundations
2013 Budget: $873 million (total)

The Open Society Foundations was founded in 1979 by investor and philanthropist George Soros to support the transition of post-communist societies in Eastern Europe and Central Asia. Thirty years since its launch, Open Society has spent more than $11 billion to fund a range of initiatives to advance human rights and justice, governance, education, health, and media and information worldwide.

The foundation remains at the forefront of campaigns that develop international tribunals to hold accountable those responsible for war crimes, crimes against humanity and genocide; demand transparency and accountability for revenues derived from exploitation of natural resources; and implement national freedom and information laws.

The David and Lucile Packard Foundation
2013 Budget: $288 million (total)

Founded in 1964, the California-based foundation finances development projects dedicated to the youth, scientific development, health and restoration, and preservation of natural resources. Its global initiatives include environmental conservation and research, expanding access to reproductive health services  and organizational support. Locally, the foundation supports interventions supporting children, families and communities.

As of December 2013, the foundation’s total investment portfolio reached $6.5 billion and awarded grants exceeding $288 million.

The John D. and Catherine T. MacArthur Foundation
2013 Budget: $76.6 million (international only)

Since its establishment in 1978, the MacArthur Foundation has grown to become one of the leading private foundations in the world, with offices in India, Mexico, Nigeria and Russia, and grantees operating in about 60 countries.

In 2013, the foundation is reported to have paid out $228.4 million in grants, with $76.6 million allotted for its international programs. The organization’s global programs deal in areas of conservation and sustainable development, secondary education for girls in developing countries, higher education in Russia and Africa, human rights and international justice, international peace and security, and population and reproductive health.

The Rockefeller Foundation
2013 Budget: $156 million (total)

The Rockefeller Foundation has been operating for more than a hundred years and has offices in the United States, Italy, Thailand and Kenya. Its development interventions in Asia and Africa focus mainly on responsible environmental management, generating employment opportunities, providing support for resilience in urbanizing communities and health and nutrition. In 2013, the foundation reported $156 million in grants and direct charitable activities.

The William and Flora Hewlett Foundation
2013 Budget: $96.8 million (international only)

From 2000 to 2013, the William and Flora Hewlett Foundation has financed $1.98 billion worth of international grants. Its global programs focus on increasing access to quality education, tempering the effects of global climate change, promoting transparency and accountability in government institutions, strengthening research and analysis for knowledge-based policymaking, and broadening the scope of family planning and reproductive health services. In 2013, the foundation awarded 634 grants amounting close to $225 million, of which $96.8 million went to international programs.

United Nations Foundation
2013 Budget: $75.32 million (total)

The United Nations Foundation started in 1998 when American media mogul Ted Turner pledged $1 billion to support U.N. causes. Although not officially part of the U.N. system, the foundation works closely with the global body by connecting people, ideas and resources to the agency. The U.N. Foundation prioritizes global issues such as poverty, climate change, energy access, population pressure, gender equity and disease. In 2013, more than 80 percent of the grant expense was channeled to children’s health programs.

See our 2011 list of top philanthropic foundations and our full list of top global development organizations. Know of other major philanthropic foundations that are making a significant impact in development? Let us know by leaving a comment below.

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