Grantmaking Foundations Revenue Benchmarks
The average grantmaking foundations business in the United States generates $1.7M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 12,138 grantmaking foundations businesses in the U.S., employing 100,598 workers with an average profit margin of 8.0%. The average employee in this industry earns $99K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Grantmaking Foundations Business Actually Do?
Private foundations and corporate foundations distributing grants from endowment income. Ford, Gates, Rockefeller are the archetypes.
Who buys: Non-profits receiving grants; funded by original endowment donors (families or corporations).
Average Revenue
$1.7M
per year
Profit Margin
8.0%
industry average
Revenue / Employee
$210K
per year
Total Businesses
12,138
in the US
Est. Owner Income
$139K
small business avg
Labor Cost
38.0%
of revenue
Avg Employee Wage
$99K
per year (BLS)
Market Saturation
3.7
firms per 100K people
How Much Do Grantmaking Foundations Charge?
Foundations grant funds from investment income on their endowment.
| Service | Typical range |
|---|---|
Required annual payout (private fdn) | 5% of endowment/year |
Overhead ratio (typical) | 5–15% of grants |
Program officer compensation | $85,000–200,000/year |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete grantmaking foundations business plan
A 12-section data-backed business plan for a grantmaking foundations business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the grantmaking foundations industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Supplies & materials | $16 | $281K | Direct consumables — parts for repair shops, chemicals for laundries, etc. |
Wages & benefits | $38 | $660K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $11 | $188K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $5 | $94K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $22 | $375K | Insurance, licensing, tools, uniforms, small equipment. |
Net profit | $8 | $139K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
8.62%
openings/year
Closure Rate
6.63%
closings/year
Net Job Growth
+5.26%
annual
Businesses Closed
1,009
in 2023
Firm Count Trend
Should You Start a Grantmaking Foundations Business?
Startup Cost
$30K – $150K
Break-Even
8 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a grantmaking foundations business do?
- Private foundations and corporate foundations distributing grants from endowment income. Ford, Gates, Rockefeller are the archetypes. Non-profits receiving grants; funded by original endowment donors (families or corporations).
- How much do grantmaking foundations charge?
- Foundations grant funds from investment income on their endowment. See the pricing table above for typical rates by service type.
- How much does the average grantmaking foundations make per year?
- The average grantmaking foundations business generates $1.7M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $139K per year at a 8.0% profit margin.
- How many grantmaking foundations businesses are there in the US?
- There are 12,138 grantmaking foundations businesses operating in the United States, employing a total of 100,598 workers.
- How much does it cost to start a grantmaking foundations business?
- Startup costs for a grantmaking foundations business typically range from $30K to $150K, with a 5-year survival rate of 50.0%.
- What is the average salary in the grantmaking foundations industry?
- The average employee in the grantmaking foundations industry earns $99K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The grantmaking foundations industry is actively growing — adding jobs at a net rate of 5.3% per year. New establishments are opening faster than existing ones close (8.6% entry vs 6.6% exit), indicating healthy demand.
Approximately 71% of grantmaking foundations businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 1,009 firms in this industry closed permanently.
Employment & Wages
The average employee in the grantmaking foundations industry earns $99,077/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 11,533 establishments employing 76,779 people, the typical business has about 7 employees.
Industry Trend (2000–2023)
The grantmaking foundations industry has grown 78% since 2000 (from 10,616 to 18,884 firms).
See full historical statistics →Compare Grantmaking Foundations revenue with other industries: