Perspectives
Giving, Governance & Growth: Key Takeaways from the COF Study
Sep 2, 2025
Back to all postsThe recently released 2024 Council on Foundations–Commonfund Study offers a comprehensive view of the investment practices, governance models, and strategic pressures facing community foundations today. While strong market returns was a headline story, the study also surfaced several meaningful trends—some subtle, others pronounced—that could shape how community foundations position themselves going forward. Below are five key observations drawn from the report and from conversations with our clients.
Key Takeaways
#1. Giving Activity Was Resilient
Despite macroeconomic uncertainty and continued volatility, giving levels increased at nearly half of surveyed community foundations in 2024. Specifically, 46% of community foundations reported increased giving, while 41% reported a decline. Among those reporting growth, the median increase was a striking 79%, compared to a median decrease of 33% on the downside.
We view this resilience as a function of strong development efforts, deep community relationships, and the strategic use of donor-advised funds (DAFs) to facilitate long-term giving. It may also reflect renewed urgency from donors to support local needs amid national policy shifts. From a planning perspective, sustained giving levels support multi-year grantmaking and provide greater flexibility for long-term capital deployment.
#2. Slower Momentum in ESG & DEI Adoption
After several years of growth, adoption of ESG and DEI frameworks appears to have plateaued or declined slightly. According to the report, 25% of community foundations invest with ESG criteria—a slight decrease from the prior year—and there was a significant decrease in the number of investment committees the reported discussing ESG, from 57% to 41%. This shift likely reflects heightened scrutiny around ESG and DEI terminology, especially in certain regions of the country as well as a sharpened focus on manager performance.
At the same time, impact investing—particularly investments tied to local economic development or affordable housing—continued to grow, marking it as the only responsible investing category with increased adoption in 2024.
We’ve seen this trend firsthand in the form of interest in place-based investments and housing-focused vehicles. The data suggests that while broad ESG mandates may be under pressure, mission-aligned capital deployment at the community level still resonates with boards and donors.
#3. DAF Regulation & Market Volatility Top the List of Concerns
Two issues consistently rose to the top when community foundations were asked about their current concerns: regulatory uncertainty around DAFs and market volatility impacting long-term performance. DAFs continue to attract attention from lawmakers concerned with transparency, lack of payout requirements, and philanthropic accountability. Simultaneously, persistent market swings have made it more challenging for community foundations to maintain confidence in return assumptions.
We believe these dual concerns underscore the importance of governance discipline. Community foundations may want to revisit long-term return expectations, stress-test portfolios against a range of scenarios, and build flexibility into their spending policies. We’ve seen increased interest in scenario modeling as a tool to support multi-year distribution needs while managing regulatory and market risk.
#4. Strong Returns Provide Opportunity for Strategic Recalibration
Community foundations delivered another strong year of performance. The average net return for 2024 was 11.0%, following 14.1% in 2023. Importantly, 10-year net annualized returns increased to 7.0%, up from 6.2% last year, which indicates progress toward intergenerational equity goals. The average stated spending policy ticked up from 4.5% to 4.6%.
These back-to-back years of double-digit net returns may offer a cushion that can be strategically used to rebalance portfolios, fund long-term priorities, or advance mission-aligned goals. That said, community foundations should be cautious not to let short-term gains obscure the broader market challenges still ahead. Many are using this window to review asset allocation ranges, private capital pacing plans, and cash reserve policies.
#5. OCIO & Implemented Consulting Models Continue to Gain Traction
The study confirmed what we are also seeing in practice: community foundations are increasingly turning to OCIO and other models beyond non-discretionary advisory relationships to manage portfolios. In many cases, these models address governance fatigue, staffing limitations, or the need for deeper implementation support without sacrificing strategic engagement.
We’ve found that OCIO and hybrid models work best when they maintain a clear link between investment decisions and institutional values. For example, some community foundations are blending outsourced management with dedicated impact sleeves or mission-aligned overlays.
As the operational complexity of investing grows, these flexible models offer a way to stay nimble without overwhelming internal resources.
Final Thoughts
The 2024 COF/Commonfund study presents a picture of a sector that is both resilient and evolving. Community foundations continue to adapt to new challenges, from donor engagement to regulatory risk, while still delivering on their core mission.
At Prime Buchholz, we have worked with community foundations for more than 30 years and currently advise or manage on approximately $8 billion in assets for these clients. We understand the nuanced needs of institutions operating at the intersection of investment strategy, community priorities, and donor engagement. We welcome the opportunity to help you interpret the study’s findings in the context of your community foundation’s unique goals.