NAICS 813211 Quarterly Industry Report
Grantmaking Foundations
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 813211Sector: Other Services (except Public Administration) (81)Updated: Q1 2026
About This Report
This industry profile for Grantmaking Foundations (NAICS 813211) draws on data from the U.S. Census Bureau[6], Bureau of Labor Statistics[8], and IRS[5] tax-exempt organization data. Published by Fair Market Value and updated quarterly, it provides valuation professionals, philanthropic advisors, and nonprofit sector analysts with current market data. Additional data is drawn from SBA[9].. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the grantmaking foundations industry.
Industry Definition & Overview
Grantmaking Foundations (NAICS 813211) encompasses establishments known as grantmaking foundations or charitable trusts primarily engaged in awarding grants from investment income and endowment funds per the U.S. Census Bureau[4]. Activities include developing grant policies and selection criteria, soliciting and reviewing grant proposals, conducting due diligence on applicant organizations, managing endowment investment portfolios, distributing grants to qualified nonprofits and institutions, and monitoring grantee compliance with award terms.
Grantmaking foundations operate as private foundations, community foundations, corporate foundations, and charitable trusts that channel philanthropic capital to nonprofit organizations, educational institutions, and social programs. Major foundations including the Bill and Melinda Gates Foundation, Ford Foundation, and Rockefeller Foundation manage multi-billion-dollar endowments that generate the investment returns funding annual grant distributions. The IRS[5] requires private foundations to distribute at least 5% of net investment assets annually and to file Form 990-PF disclosing financial activity, grants awarded, and investment holdings. Community foundations serve geographic regions by pooling donor contributions into managed funds that support local nonprofits, while corporate foundations extend corporate social responsibility through structured grantmaking programs. Over 12,000 grantmaking establishments operate nationwide per Census Bureau[6] data, employing nearly 100,000 workers in program management, investment, legal compliance, and administrative functions.
Grantmaking foundations are generally exempt from standard SBA[7] size classifications as tax-exempt nonprofit entities. State attorneys general oversee charitable trust administration and enforce compliance with donor-restricted fund requirements. IRS[5] excise tax provisions apply to private foundation net investment income and self-dealing transactions.
What's Included in This Industry
- Private foundation grant programs
- Community foundation fund management
- Corporate foundation grantmaking
- Scholarship and fellowship award programs
- Endowment investment portfolio management
- Grant proposal review and selection
- Grantee monitoring and compliance oversight
- Donor-advised fund administration
- Charitable trust administration
- Program-related investment management
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Other Services (except Public Administration) | 81 |
| Subsector | Religious, Grantmaking, Civic, Professional, and Similar Organizations | 813 |
| Industry Group | Grantmaking and Giving Services | 8132 |
| NAICS Industry | Grantmaking and Giving Services | 81321 |
| National Industry | Grantmaking Foundations | 813211 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 813212 | Voluntary Health Organizations | Voluntary Health Organizations raises funds for health research and patient services that grantmaking foundations often support through targeted health-focused grants, with foundations and voluntary health organizations sometimes collaborating on disease research and public health initiatives |
| 813219 | Other Grantmaking and Giving Services | Other Grantmaking and Giving Services includes federated fundraising organizations like United Way that distribute charitable funds similarly to foundations, with both types of organizations channeling donor contributions to qualified nonprofit recipients through structured giving programs |
| 813110 | Religious Organizations | Religious Organizations receives foundation grants for community service, education, and social welfare programs operated by faith-based institutions, with grantmaking foundations supporting religious organization activities that serve charitable rather than religious worship purposes |
| 813311 | Human Rights Organizations | Human Rights Organizations receives foundation funding for civil rights advocacy, voter education, and social justice programs, with grantmaking foundations providing critical funding for human rights organizations that rely on philanthropic support for their advocacy work |
| 813312 | Environment, Conservation and Wildlife Organizations | Environment, Conservation, and Wildlife Organizations receives foundation grants for environmental protection, habitat restoration, and conservation research, with environmental grantmaking representing a major focus area for foundations concerned with climate change and natural resource preservation |
| 524210 | Insurance Agencies and Brokerages | Insurance Agencies and Brokerages provides fiduciary liability and directors and officers coverage for foundation board members, with specialized nonprofit insurance products protecting foundation trustees from personal liability in grant distribution and investment management decisions |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 14.0% | 1,782 |
| 2 | New York | 10.3% | 1,314 |
| 3 | Texas | 6.5% | 825 |
| 4 | Florida | 5.0% | 635 |
| 5 | Illinois | 3.7% | 466 |
| 6 | Pennsylvania | 3.4% | 432 |
| 7 | Massachusetts | 3.1% | 395 |
| 8 | Ohio | 3.0% | 378 |
| 9 | Virginia | 2.9% | 364 |
| 10 | Washington | 2.6% | 331 |
% Of Establishments
0%
14%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for foundations?
NAICS 813211 covers grantmaking foundations including private foundations, community foundations, corporate foundations, and charitable trusts per the U.S. Census Bureau[4].
What IRS requirements apply to private foundations?
The IRS[5] requires private foundations to distribute at least 5% of net investment assets annually, file Form 990-PF disclosing grants and investments, and pay excise tax on net investment income.
How many grantmaking foundations operate in the U.S.?
Per Census Bureau[6] data, over 12,000 grantmaking foundation establishments operate nationwide employing nearly 100,000 workers in program management, investment oversight, and administrative functions.
What is the difference between a private and community foundation?
Private foundations are funded by a single source such as an individual, family, or corporation per IRS[5] classification, while community foundations pool contributions from multiple donors to support charitable activities within a geographic region.
What is the 5% payout requirement?
Private foundations must distribute at least 5% of the fair market value of their net investment assets each year as qualifying distributions per IRS[5] regulations, including grants, program-related investments, and reasonable administrative expenses.
What regulatory oversight applies to foundations?
State attorneys general oversee charitable trust compliance and donor-restricted fund administration, while the IRS[5] enforces excise tax provisions, self-dealing prohibitions, and annual filing requirements for private foundations.
What is a donor-advised fund?
Donor-advised funds allow individuals to make charitable contributions to a sponsoring organization per Bureau of Labor Statistics[8] industry classification, receive immediate tax deductions, and recommend grants to qualified nonprofits over time from the contributed funds.
What occupations work in foundations?
Per Bureau of Labor Statistics[8] data, foundations employ program officers, investment managers, compliance specialists, accountants, grant administrators, and executive leadership overseeing philanthropic strategy and fund distribution.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Census Bureau census.gov
- [5]IRS irs.gov
- [6]Census Bureau data.census.gov
- [7]SBA sba.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]SBA sba.gov
- [10]SBA lending programs sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]504 loans sba.gov
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