The 2025–2026 assessment of 100 grant-making foundations has delivered the strongest results in the initiative’s five-year history, with clear progress in diversity, accountability and transparency across the sector.
Record-breaking performance
This year’s findings highlight a sector moving in the right direction:
12 foundations achieved an A grade overall, the highest number ever recorded
Three foundations secured straight A’s across all categories (diversity, accountability and transparency), a rare achievement
Only seven foundations received D grades across all areas, down from 12 last year
Every assessment criterion was met by at least one foundation, reinforcing that best practice is both realistic and achievable
The message is clear: standards are rising, and more organisations are meeting them.
Real progress—but more to do
Danielle Walker Palmour, Director of Friends Provident Foundation, says the shift is meaningful. He told That's Business: “Five years ago, the Foundation Practice Rating found that as foundations we had work to do especially in diversity. These results show we’re making headway.”
While progress is evident, she also acknowledges ongoing challenges, particularly as the operating environment becomes more complex.
Spotlight on leadership
Among the standout performers is Mission 44, founded by Sir Lewis Hamilton, which achieved a rare “AAA” rating.
The organisation focuses on improving access to education and STEM careers for young people, with CEO Jason Arthur emphasising the importance of inclusion:
“Valuing and listening to diverse voices, particularly young people, is central to everything we do.”
Community foundations lead the way
Community foundations continue to outperform the wider sector. All seven assessed this year received A or B ratings, reflecting strong local engagement and accountability.
Emma de Closset, Chief Executive of UK Community Foundations, credits their success to a grassroots approach: “We’re rooted in the communities we serve. That closeness drives transparency, trust and responsiveness.”
A sector in transition
Despite the positive results, the report also highlights emerging pressures. Some foundations are pausing or closing, while others face increased scrutiny—and even personal targeting of staff and trustees.
This raises important questions about how far transparency can or should go in a changing landscape.
Why it matters for business
For organisations partnering with charities or foundations, these improvements are significant. Stronger governance, clearer accountability and more inclusive practices make for more effective funding—and better outcomes.
As Palmour puts it: “How we fund matters just as much as what we fund.”
Bottom line: The UK foundation sector is improving fast—but in a more challenging environment than ever. For businesses, donors and partners, that makes transparency and trust more valuable than ever.
Read the full report: foundationpracticerating.org.uk/cohort-results-2025-2026
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