In 2024, only 50 per cent of UK adults donated to charity, marking the lowest giving rate in nearly a decade. For UK family foundations, this signals more than just a shift in donor behaviour. It reflects a wider expectation for efficiency, trust, and demonstrable impact.
With lean teams, rising trustee demands, and mounting community needs, family foundations are under pressure to evolve, rethinking how they work, govern, and give in 2025 and beyond.
These pressures aren’t theoretical; they’re playing out daily in boardrooms, grant meetings, and community consultations. To understand how family foundations are responding, it’s essential to look at the specific challenges they’re facing now and how those challenges are reshaping priorities and practices across the sector.
Small teams, big workloads, and limited bandwidth
Most family foundations in the UK are built on personal commitment and intergenerational values, not extensive staff teams. Many are run by just one or two people, and in some cases, solely by trustees wearing multiple hats. From vetting applications to preparing board materials, they’re often responsible for every stage of the grant lifecycle.
That might be manageable if systems were built to support such agility. Instead, many foundations still rely on a combination of spreadsheets, shared drives, and email threads to keep track of everything, a setup that consumes more time than it saves.
Time is a precious commodity. When hours are lost chasing documents or manually compiling reports, it’s not just inconvenient, it’s unsustainable. And with rising expectations across the sector, those inefficiencies come at a greater cost than ever.
Rising trustee expectations for transparency and impact
The makeup of foundation boards is changing. As younger generations assume more leadership and governance roles, they bring fresh expectations, both for how data is presented and how decisions are made.
Gone are the days when an annual report would suffice. Trustees now want real-time access to grant data, outcome tracking, and financial insight, all in digestible, shareable formats. They expect clarity, not complexity; dashboards, not spreadsheets.
This demand is not unfounded. It reflects the broader shift in donor engagement, particularly among younger people.
The same report that highlighted overall donation levels in 2024 also found that only 36 per cent of 16- to 24-year-olds gave to charity, down from 55 per cent in 2017. In an era where younger generations are becoming both funders and decision-makers, the pressure to demonstrate purpose and trustworthiness is only increasing.
Foundations that adapt to this digital-first, impact-focused approach are better placed to maintain continuity across generations and attract future leaders.
Why efficiency is no longer optional in 2025
Efficiency has never been more essential. As public demand for charitable services surges, foundations must be able to act quickly, with confidence and coordination.
This is not just about convenience, it’s about leadership. As we know, in 2024, only 50 per cent of UK adults donated to charity, which is the lowest figure in nearly a decade. With fewer people giving, the responsibility for sustaining impact increasingly rests with funders who are digital-first, agile, transparent, and ready to support frontline organisations.
Manual processes, duplicated tasks, and disconnected tools create friction at precisely the moment when responsiveness is most needed. On the other hand, efficient foundations can turn funding requests around more quickly, support grantees more effectively, and reduce burnout within their own teams.
Efficiency is governance. It’s well-being. And in today’s landscape, it’s a competitive advantage.
What UK family foundations need from their grant systems
Over the past decade, 170 new family foundations have been established in the UK by high-net-worth individuals, a clear sign that philanthropy is evolving fast. But while the appetite to give has grown, giving itself has become more complex.
Simply because not all grant systems are designed for the unique needs of UK family foundations, while some cater to large institutions with complex departments and rigid processes, others focus heavily on compliance but neglect usability.
For family-led funders, a sound grant management system (GMS) should be flexible, intuitive, and aligned with how you already work.
Look for features such as:
- Configurable workflows that reflect your foundation’s internal approval processes and funding cycles.
- Role-based dashboards that give trustees and staff quick access to relevant data, and only the data they need.
- Integrated communication tools to reduce reliance on external email threads and missed messages.
- Cloud-based access that supports flexible work across teams and geographies.
- UK-specific compliance support, including audit-ready reporting and documentation for the Charity Commission and 360Giving.
The right GMS removes bottlenecks and empowers teams; it doesn’t add to their burden.
Time-saving benefits of the right platform
The time-saving benefits of switching to a modern grant management platform go beyond convenience; they create space for greater impact.
Automation features help automate recurring administrative tasks, such as status updates, reminders, and reporting deadlines. Instead of spending hours chasing applicants for documents or manually preparing trustee packets, your team can focus on strategic giving, reviewing outcomes, and fostering grantee relationships.
This matters more than ever. Recent data show that 86 per cent of charities across the UK have seen an increase in demand for their services, and 88 per cent expect that trend to continue. Foundations need to be prepared to scale their support without overextending themselves.
But when your grant management system does the heavy lifting, your people can do the high-value work that drives change.
Start a conversation about supporting your foundation’s mission
Every family foundation has its own unique story and approach to its work. However, the challenges facing UK funders in 2025 are remarkably consistent: increased pressure, higher expectations, and insufficient time.
The right grant system can make all the difference. It can help your team stay ahead of trustee requests, collaborate more effectively, support your mission with less friction, and foster closer relationships with grantees. And when done well, it becomes more than just a tool; it becomes a foundation for giving.
Foundant helps UK family foundations meet trustee expectations and operate with greater clarity and efficiency.
Learn more about how we can support your work.