The year 2025 has begun with significant uncertainty in the global development landscape following the U.S. government’s decision to halt and review all foreign aid.
As the largest provider of development and humanitarian assistance among the Development Assistance Committee (DAC) member countries, the US accounted for nearly a third of total official development assistance in 2023. This decision has left many developing nations in a precarious position.
In response, philanthropic foundations have become increasingly important players in funding global development projects.
A new report titled “Top 10 Foundations Funding Global Development” by Devex provides an in-depth analysis of the top 10 largest foundations and their contributions, highlighting key trends in philanthropic funding.
A Decline in Private Philanthropy Spending
According to the Organisation for Economic Co-operation and Development (OECD), the total development spending by 36 major private providers fell to $11 billion in 2022, marking an 8.2% decline from 2021.
However, 17 foundations reported an increase in their development spending during the same period. Notably, Good Ventures doubled its spending from $104.6 million in 2021 to $211.5 million in 2022.
“A total of 35 foundations provided complete information on their development spending in 2022,” the report states.
“Overall, these 36 private providers spent $11 billion on development—down 8.2% from 2021,” reads the report.
Leading Foundations in Development Funding
The top 10 foundations collectively spent $8.6 billion on development projects in 2022. These include the Gates Foundation, Mastercard Foundation, Children’s Investment Fund Foundation (CIFF), Wellcome, Bloomberg Philanthropies, Ford Foundation, IKEA Foundation, LEGO Foundation, Oak Foundation, and the Howard G. Buffett Foundation.
Among these, the Howard G. Buffett Foundation saw the most significant increase in spending, rising by 71.7% to $237.8 million. The Oak Foundation and LEGO Foundation also recorded notable increases of 62.4% and 37.1%, respectively. On the other hand, Wellcome’s spending dropped by 17.5%, while the Mastercard Foundation and Gates Foundation saw decreases of 15.2% and 3.1%, respectively.
The report highlights that “The Howard G. Buffett Foundation saw the biggest jump, at 71.7%—from $138.5 million to $237.8 million.” Meanwhile, the Gates Foundation remained the largest donor with $4.98 billion in total spending.
Regional and Sectoral Priorities
Sub-Saharan Africa remained the top regional recipient, receiving $3.2 billion in 2022, although this represented a 13.9% decrease from 2021.
South and Central Asia followed with $851.3 million, down 4.2% from the previous year. Other notable allocations included $331 million for East Asia, $281.9 million for South America, and $262 million for Europe.
According to the report, “Health was the priority of these philanthropies in 2022, spending a total of $4.2 billion. This is 15.2% down from 2021. Education followed, with $1.2 billion, up 58.7% from 2021.”
Other priority sectors included population and reproductive health ($1.1 billion), agriculture ($823.6 million), and environmental protection ($654.7 million).
Focus on AI and Climate Change
Some of the largest foundations are shifting their focus toward emerging global challenges such as climate change and artificial intelligence (AI). The Gates Foundation, for example, has committed to increasing its annual spending to $9 billion by 2026, with a particular emphasis on AI-driven health and development solutions.
“We are prioritizing funding for projects that harness AI to improve healthcare and development, particularly in low- and middle-income countries,” said Mark Suzman, CEO of the Gates Foundation.
CIFF has also made climate action a central focus, allocating $220 million in climate-related grants in 2023. Similarly, in June 2024, Wellcome, the Gates Foundation, and Novo Nordisk pledged $100 million each to a research initiative investigating the intersection of climate change, malnutrition, and infectious diseases.
Key Organizational Shifts
Several leadership changes have also shaped the philanthropic landscape. Melinda French Gates stepped down as co-chair of the Gates Foundation in 2024 after two decades of service. Meanwhile, Mastercard Foundation President and CEO Reeta Roy announced her departure in early 2025 after leading the foundation since 2008.
The report also notes, “In 2024, Melinda French Gates, who was co-chair of the foundation for two decades, stepped down from her position. She was responsible for setting the direction and priorities of the foundation.”
Looking Ahead
Despite a challenging funding environment, private philanthropic foundations continue to play a crucial role in global development. The growing emphasis on AI, climate change, and education reflects a strategic shift toward addressing long-term challenges. While funding fluctuations are inevitable, the resilience of these foundations offers hope for continued progress in global development efforts.
