In communities across Kentucky, and throughout the country, we’re watching a critical shift unfold. Federal grantmaking hasn’t disappeared, but it has slowed and changed. Long-standing programs are facing budget constraints, shifting priorities, or outright proposals for elimination. For many nonprofit leaders, it feels like the ground is moving beneath their feet.

Let’s be clear: private philanthropy cannot fully replace public investment. The scale and reach of federal grants are unparalleled, and when those dollars diminish, the ripple effects are profound, especially in under-resourced and rural areas like so many of our Kentucky communities.

But here’s the good news: philanthropy is not sitting on the sidelines. In fact, private foundations, large, small, corporate, and community-rooted, are stepping forward with urgency, creativity, and a sense of shared responsibility. They’re increasing giving, loosening restrictions, and using their voices to call others into action.

We may not yet feel all of these dollars in Kentucky, but the shift in mindset and momentum gives us something powerful: encouragement, direction, and hope.

National Leaders, Local Lessons

MacArthur Foundation: Raising the Bar

The MacArthur Foundation has committed to increasing its payout rate from the traditional 5% to 6% for 2025 and 2026. That one percentage point may not sound like much, but across the philanthropic sector, it could unleash an additional $73.8 million based on their 2024 990. More importantly, MacArthur is urging its peers to follow suit and doing so in a way that centers nonprofit needs, trust, and long-term sustainability.

Gates Foundation: $200 Billion by 2045

The Gates Foundation, which has supported many initiatives in Kentucky, has announced it will double its lifetime giving to $200 billion over the next two decades. This includes accelerating current giving in areas like maternal health, infectious disease, and climate resilience. “There’s never been a greater opportunity to have an impact in our own lifetimes,” said Bill Gates.

Marguerite Casey Foundation: A Fivefold Increase

The Marguerite Casey Foundation, which supports underrepresented populations in central Appalachia, among other initiatives, committed five times its normal annual giving ($130 million) from its endowment, focused on supporting leaders advancing justice and democracy. Their action isn’t just about money, it’s about values: a belief that funders must act boldly and immediately in the face of political and social instability.

Heinz Endowments: A Regional Response with National Impact

The Heinz Endowments increased their annual grantmaking budget by 15% and created a $6 million emergency fund specifically to support nonprofits impacted by federal funding cuts.. Heinz supports sustainability and environment issues (in addition to other initiatives), which have recently been hit hard by funding cuts. 

Freedom Together Foundation: Courage and Capacity

The Freedom Together Foundation, which supports racial justice along with other initiatives, has centered its giving on organizing, resilience, and movement infrastructure, providing both rapid response and long-term support to organizations.

Philanthropy as a Movement

The Giving Pledge, which encourages billionaires to commit most of their wealth to giving, recently added 11 new signatories. As Bill Gates put it, “There’s never been a greater need for philanthropy.”

Why This Matters for Kentucky

Most of the foundations mentioned above aren’t based in Kentucky, and they may not currently be investing here. But that doesn’t mean their actions don’t matter to us. Their leadership gives local and regional funders a model to follow, and Kentucky’s nonprofits a reason to stay hopeful.

A Call to Action to Our Friends in Philanthropy: Let’s Close the Rural Gap, Together

At Grant Ready Kentucky, we work with nonprofits in some of the most underfunded and overlooked parts of the country: rural Kentucky. And we can tell you plainly: the need is growing faster than the support.

Recent research confirms what our communities already know: while nearly 20% of Americans live in rural areas, only about 3% to 7% of philanthropic dollars are reaching those places. As Andrew Dumont of the Federal Reserve Board of Governors notes, 

"Based on our findings, I think it would be fair to say that 7 percent is probably a generous estimate of the share of philanthropy that's landing in rural communities.  Our preliminary research indicates that it's closer to 3 percent."

And it’s not just about funding. In many of the towns we serve, nonprofit leaders wear multiple hats. The same person might be the grant writer, the food bank coordinator, and the afterschool tutor. According to the report, one town leader put it simply: “We have an administrative office of three or four people trying to handle grant writing while also running the town.”

If you are a funder, foundation leader, corporate partner, or donor-advised fund holder, we invite you to reach out. Let’s explore how your giving could make a transformational difference right here in rural Kentucky. Whether you’re interested in youth development, food security, workforce training, civic health, or all of the above, we know the people doing that work.

This is a moment of both challenge and opportunity. We’re under no illusion that philanthropy can fill every gap left by shifting federal priorities. It can’t. But what it can do, and is doing, is responding with urgency, leadership, and heart.

At Grant Ready Kentucky, we’ll continue to help nonprofits build their readiness, pursue smart funding strategies, and navigate a complex grant landscape. And we’ll keep working to connect funders and changemakers who believe that when we give boldly, we build a stronger future for everyone.

This is your invitation. We welcome your calls, your questions, your curiosity, and your partnership. Let’s close this gap. Let’s keep moving forward, together.

Sources

MacArthur Foundation. “Set It at Six: Supporting Civil Society in Need with Increased Giving”. February 25, 2025.

Candid. “Why the Marguerite Casey Foundation is Leveraging Its Endowment”. May 27, 2025.

PA Environment Digest. “The Heinz Endowments Now Accepting Applications for $6 Million to Help Nonprofits Facing Hardships”. June 4, 2025.

Freedom Together Foundation. “President’s Letter: Courage Is Contagious”. 2025.

Gates Foundation. “Gates Foundation Will Double Spending Over Next 20 Years”. May 8, 2025.

Philanthropy News Digest. “Giving Pledge at 15 Adds 11 Signatories”. May 29, 2025.

Federal Reserve Bank of Richmond. “The Philanthropy Gap in Rural America”. Econ Focus, Fourth Quarter 2024.