Defense or Offense? Why Foundations Should Invest More Now

Philanthropy is under pressure like never before. Foundation and nonprofit leaders are navigating a difficult mix of market uncertainty, political polarization, and even direct threats to their very existence. In times like these, the instinct is often to conserve—to focus inward, protect institutions, and wait for the storm to pass.

But history suggests the opposite approach will be more effective. The moments of greatest uncertainty are often when philanthropic dollars have the most power to shape outcomes. Communities face urgent challenges, and investments made now can ripple forward in ways that far exceed what cautious strategies achieve.

Philanthropy works best when there’s a healthy balance between operational dollars (those that keep organizations running) and philanthropic dollars (the funds that reach communities and drive impact). When foundations lean too heavily toward protecting their own sustainability, the result can be diminished impact at the very moment society needs them most.

That doesn’t mean ignoring financial realities, legal risks, and external risks. It means being intentional about where to place bets and how to structure giving. In some cases, it may mean tapping reserves or accelerating payout rates. In others, it might mean partnering more deeply with peers to share risk while still moving resources into communities.

If foundations have the ability to get more money out the door, now may be the time to do it. The organizations and communities on the frontlines of today’s challenges can’t afford for philanthropy to wait until conditions feel safer. Boldness now will not only meet immediate needs—it will strengthen trust, legitimacy, and the future of philanthropy itself.

Photo by Bruno Braghini: https://www.pexels.com/photo/person-standing-on-a-rock-stocked-between-rocks-4935595/