FEG Investment Advisors Releases 10th Annual Community Foundation Survey Findings

FEG Investment Advisors (FEG), an independent and employee-owned investment advisory firm, is proud to announce the release of its 10th annual FEG Community Foundation Survey findings, featuring a record-breaking 113 U.S. community foundation participants representing more than $41 billion in assets under advisement.¹ It establishes year-over-year benchmarks on the evolution to outsourced CIO services and trends in asset allocation and investment governance.

The survey provides timely insights into the evolving landscape of community foundation investing, operations and risk management. Specific topics covered include asset allocation, spending policy, values aligned investing, and the emerging role of artificial intelligence in foundation strategy. 

“The FEG Community Foundation Survey continues to be a resource for our clients and the broader philanthropic community,” said Alan Lenahan, chief executive officer of FEG. “By providing peer benchmarking and highlighting sector-wide trends, the survey empowers foundations to make informed, strategic decisions. We believe in the mission of community foundations and are excited to provide them with information that helps align their missions.”

Information for the survey was provided between January and March of this year. Key findings include: 

• Spending Rates: Average and median spending rates remained steady, although foundations maintaining a 5% spending rate continued to decline.  
• OCIO Adoption: The Outsourced Chief Investment Officer (OCIO) model continues to gain momentum, though the traditional/non-discretionary model remains the most widely used.
• Values Aligned Investing: Responsive Investing remains the dominant approach. The average portfolio allocation increased from 15% to 20%, with a notable rise in foundations willing to accept below-market returns to align with mission-driven goals. Some foundations are shifting toward private capital as part of broader impact investing strategies.
• Artificial Intelligence (AI): Despite nearly 80% of community foundations anticipating that vendors or investment partners will leverage AI in the future, only 20% have begun integrating AI into their own operations or investment strategies. 

Now in its 10th year, the FEG Community Foundation Survey continues to serve as a trusted resource for community foundations seeking to navigate a complex and rapidly changing investment environment.

Survey Methodology
The proprietary FEG Community Foundation Survey collects data on a variety of financial and enterprise topics to provide insights on issues affecting the community foundation field. The survey is open to all U.S. community foundations and was completed primarily by senior-level investment decision makers. FEG received 113 responses across 29 states, representing more than $41 billion in assets. 

For more information about FEG’s Community Foundation Survey, visit www.feg.com/studies/community-foundation-survey.

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About the FEG Community Foundation Survey 
What began as a simple flash poll in 2015 has evolved into a robust, data-driven annual study that has delivered critical insights to the community foundation sector for a decade. Since 2016, the survey has engaged over 250 community foundations across 46 states, helping inform strategic decisions that drive meaningful impact in local communities.

The FEG Community Foundation Survey is a proprietary research initiative designed to capture a wide range of financial and enterprise data. Originally focused on peer comparisons for spending policy and asset allocation, the survey has expanded over the years to include timely topics such as values-aligned investing and emerging technologies like artificial intelligence.

Open to all U.S. community foundations, the survey is primarily completed by senior-level investment and finance decision-makers, providing high-quality, relevant insights. The 2025 edition includes responses from 113 community foundations, representing a broad spectrum of asset sizes—from under $25 million to over $1 billion.

This year’s survey was conducted online from January 15 to March 7, 2025, with participants also given the option to submit responses via email. Participation was voluntary and free of charge. Data collected was categorized into five to seven asset tiers to provide meaningful peer comparisons.

The findings presented are based on self-reported data and are intended for educational and illustrative purposes only. FEG extends its sincere gratitude to all participating community foundations for their commitment to advancing the field and serving their communities.

¹Assets under advisement were self-reported by respondents as of September 30, 2024.