Private Philanthropy for Development (Third Edition): Taking Stock of Philanthropy’s Contribution to Development
Published by the OECD in March 2026, this third edition of Private Philanthropy for Development offers the most comprehensive dataset to date on philanthropic funding toward low- and middle-income countries over the period 2020–2023. The report draws on data from 506 philanthropic organizations and organizational strategies from 105 foundations. It situates private philanthropy within the broader development finance landscape, comparing its scope, priorities, and practices with official development assistance (ODA). The report also introduces new analyses on crisis response, co-financing behavior, and locally led development, offering practical pathways for deeper collaboration across public, private, and philanthropic actors.
Scale, Geography, and Sectoral Priorities
Philanthropic contributions to development amounted to USD 68.2 billion over 2020–2023, comprising USD 52.8 billion in cross-border flows and USD 15.4 billion in domestic funding — equivalent to roughly 10 percent of ODA volumes. Africa was the top recipient region of cross-border flows, receiving USD 17.6 billion (33 percent of the total), with annual flows rising steadily from USD 4.0 billion to USD 4.8 billion over the period. Health absorbed 40 percent of total philanthropic flows, followed by education at 11 percent and civil society at 7 percent. Funding remains highly concentrated: the top ten largest international foundations provided three-quarters of total cross-border financing, with the Gates Foundation alone accounting for 36 percent of flows to Africa.
Operating Modalities and Strategic Partnerships
Traditional grant-making remains the predominant instrument, with limited uptake of innovative financing tools such as guarantees, loans, or equity. Post-COVID-19, however, foundations reported shifting toward greater funding flexibility and simplified requirements for grantees. Non-financial support is widely used, most commonly through access to networks and monitoring and evaluation assistance. In addition, more than two-thirds of surveyed philanthropies engaged in co-financing arrangements with over 300 partners. Nevertheless, partnerships remain concentrated among private foundations, companies, and international NGOs, with local organizations remaining underrepresented. Only 11 percent of cross-border philanthropic flows were channeled directly to local organizations over the period, despite growing global attention to locally led development.
Recommendations and the Path Forward
The report calls on foundations to expand participation in blended finance mechanisms, increase longer-term and unrestricted funding for frontline organizations, and build internal evaluation capabilities. Foundations are also encouraged to engage with governments to scale proven solutions rather than attempt to scale programs independently. In turn, governments and other development finance providers are urged to create enabling regulatory environments for domestic philanthropy, foster blended finance partnerships, and support platforms that facilitate match-making between philanthropic and public actors. In a context of declining ODA budgets, understanding and mobilizing domestic philanthropy emerges as a critical priority for sustaining basic services and reducing dependency on external aid.
Reference
OECD. (2026). Private philanthropy for development (third edition): Taking stock of philanthropy’s contribution to development. The Development Dimension. OECD Publishing. https://doi.org/10.1787/98e676c0-en