Great news from the foundation world. According to a new study, as detailed in The Chronicle of Philanthropy, assets at private foundations rose to $1.1 trillion, regaining losses suffered when the market plunged in March. This rebound, combined with higher payout rates to address COVID-19 pandemic needs in the nonprofit community, suggests 2020 may be a good year for grantmaking.

Throughout the pandemic, we’ve counseled our clients to aggressively pursue foundation grants, especially for COVID-related concerns. That strategy has paid dividends for numerous clients who have landed large grants in recent months.

The Chronicle article also notes the misconception that foundations award roughly 5 percent of their assets annually. While major foundations might hover around that figure, the overall rate is closer to 8 percent because smaller foundations often exceed the 5 percent minimum required by law.

So although individual giving remains the bread and butter of philanthropy, don’t discount the potential of foundations of all sizes—major national foundations, community foundations, and family foundations, as well as donor advised funds. Grants should be an integral part of any organization’s fundraising plans.

Read more about the foundation study here.