As the nonprofit sector continues to struggle with uncertainty and funding cuts, we will extend our commitment to a charitable payout rate of 6 percent through 2028. This will mean approximately $190 million in additional charitable payout spread over 2027 and 2028 relative to our baseline, assuming projected investment returns.

In early 2025, we shared that the MacArthur Foundation would “Set it at Six” to support the nonprofit sector at a time of increased need. We committed to increase our charitable payout to at least 6 percent for 2025 and 2026 and, where possible, use flexible, trust-based models for our charitable gifts. This was always our floor, never our ceiling. We exceeded our commitments in 2025, with our charitable spending estimated at $647 million or a rate of 7.1 percent. We also applaud our peers who have committed to give more and who are doing so.

Communities, leaders, and nonprofits are doing the work, showing their resilience and power, and philanthropy still needs to do more.

Why are we extending our commitment to a charitable payout for two more years? Because it is clear the nonprofit sector continues to face a funding crisis. Communities, leaders, and nonprofits are doing the work, showing their resilience and power, and philanthropy still needs to do more.

How the MacArthur Foundation Is Meeting an Increased Need

Challenges and funding gaps remain urgent issues for every community. We hear this in our conversations with grantees, and the data backs it up. The Center for Effective Philanthropy report on the ongoing challenges in our sector found that nonprofit leaders are continuing to see both increased demand for services and significant funding cuts: 81 percent of nonprofit leaders reported increased community needs, and 69 percent had experienced reduction in funding.

In response, MacArthur’s support has taken many forms. We are listening to grantees and the charitable sector, uniting with our peers to defend the freedom to give to the causes we care about, increasing our giving and flexibility where we can, and offering training, coaching, and other resources to the nonprofits we support. From telling human stories through the humanities, to supporting nonpartisan organizations and coalitions defending the essential elements of American democracy, to deepened support for the sciences, we aim to be responsive to emerging needs.

Read the full article about how the MacArthur Foundation is increasing its giving at MacArthur Foundation.