How lean funders are embracing the values, skills, and practices of Catalytic Philanthropy — and creating outsized impact in their communities.
Catalytic Philanthropy is a values-driven style of leadership that leverages a foundation's relationships, nongrant assets, and proven practices to help lean funders make long-term, systematic changes that support the communities they serve. In 2026, new data shows where the field stands — and where the opportunity lies.
Roughly two-fifths of lean foundations now report that Catalytic Philanthropy is mostly or completely aligned with their approach — a signal that catalytic principles are taking root across the field, especially among staffed foundations and those centering racial equity.
The four virtues of Catalytic Philanthropy — humility, passion, curiosity, and patience — reflect the mindset that distinguishes catalytic leaders. They help lean funders stay grounded in community realities and lead with open minds and hearts.
What sets Catalytic Philanthropy apart begins not with strategy, but with character. The four leadership virtues form the roots of catalytic philanthropy — shaping how funders listen, engage, and evolve.
"Practicing humility allows funders to listen more deeply, build trust, and share decision-making power."
Humility can take many forms — from actively seeking feedback to adjusting a foundation's strategy based on what partners share. Nearly half (44%) of foundations frequently gather feedback from grantees or community members about funding priorities.
More than half (56%) of respondents reported that, within the past year, their foundation changed its perspective or approach in response to grantee or community partner input.
"Passion extends beyond enthusiasm — it is expressed through active engagement, ongoing learning, and a willingness to use every tool available."
For catalytic leaders, passion shows up in how deeply boards engage in the foundation's work beyond routine grant approvals. More than one-third (35%) of foundations reported their board is very or extremely engaged in mission-related work.
"Curiosity shows up in many ways — from listening to community members to creating opportunities for board and staff to engage in ongoing learning and reflection."
Nearly three-fourths (74%) of foundations reported that their board members engage with communities and experts to deepen their understanding of the issues they fund. Yet only 46% invest in professional development for staff, and just 24% do so for board members.
"Patience reflects confidence in both the mission and the process — acknowledging that real transformation requires persistence."
About 41% of foundations reported being very or extremely comfortable funding initiatives that may take years to show measurable results. Another 41% described themselves as moderately comfortable — suggesting significant opportunity to deepen the field's patient capital approach.
Deep listening, strong relationship-building, and understanding the landscape enable funders to move beyond transactional grantmaking and engage meaningfully with their communities.
The key skills of Catalytic Philanthropy help funders leverage their full range of assets — including influence, expertise, and relationships — beyond grant dollars alone.
Deep listening is a cornerstone of catalytic leadership. Foundation boards apply a range of strategies to engage with communities and subject-matter experts — from site visits to community advisory groups. Site visits remain the most common approach, with 83% of boards using them to stay connected to the work on the ground.
For lean funders, strong relationships are at the heart of catalytic leadership. More than three-fourths (76%) of participating foundations reported that their board and staff maintain authentic relationships with the communities they aim to serve. When it comes to making funding decisions, direct conversations with nonprofit representatives are the top priority — outranking even the written grant application.
Catalytic leaders take a broad, strategic view of the ecosystem in which they operate — identifying gaps, opportunities, and partnerships that can enhance their impact. Landscape scanning can take many forms, from learning from peers and community partners to commissioning formal research. Currently, only 17% of foundations provide financial support to grantees for evaluation, and 16% commission research directly — signaling significant untapped opportunity.
"Understanding the landscape requires taking a broader, more strategic view of the ecosystem — identifying gaps, opportunities, and partnerships that enhance impact."
Sharing a clear focus, centering equity, getting out of the office, and making multiyear flexible grants — these are the day-to-day actions that transform paperwork-heavy processes into purposeful community engagement.
The core practices of Catalytic Philanthropy represent the daily habits of catalytic funders — grounding their work in clear purpose, equity, community presence, and trust-based grantmaking.
A core element of catalytic leadership is maintaining and clearly communicating a sense of focus and purpose. When foundations articulate their mission and priorities — both internally and externally — they can align their efforts toward the most meaningful issues and strategies. The majority (80%) of foundations report a strong alignment between their boards and staff in advancing the organization's mission.
"When foundations articulate their priorities clearly, they can align every asset — relationships, influence, and grants — toward the most meaningful change."
Equity is a core element of Catalytic Philanthropy and underpins every virtue, skill, and practice. One-third (33%) of participating foundations perceived racial equity as very relevant to their mission. At the governance level, about one-third (32%) reported having an institutional commitment to addressing or eliminating inequities — and those foundations were significantly more likely to fund community organizing and engage constituents in grantmaking.
One-third of participating foundations perceived racial equity as very relevant to their mission. But institutional commitment and grantmaking-level equity practices remain more concentrated among a subset of the field.
Catalytic leaders intentionally rethink how they spend their time — streamlining internal processes so they can focus on the relationships and activities that drive the greatest impact. Nearly two-thirds (63%) of participating foundations have streamlined or simplified their grant application process, and more than half (55%) have streamlined their reporting requirements. Less paperwork means more time in community.
As catalytic leaders listen deeply, build strong relationships, and spend time in their communities, they consistently hear the same message from nonprofits: the need for multiyear flexible funding. Providing long-term, unrestricted support enables grantees to plan ahead, invest in capacity, and respond effectively to emerging challenges.
Connect, collaborate, champion, and advocate — these are the actions that transform intention into impact, empowering funders to leverage every asset beyond the grant check.
The four catalysts are how lean funders amplify their reach far beyond their grantmaking budgets — weaving networks, lifting up partners, and driving systemic change.