R1 Universities Are Capturing Less Than 10% of Available Philanthropic Dollars
R1 universities are capturing less than 10% of the philanthropic dollars available from funders who already support higher education.
That's not a typo.
From my analysis of 2023 tax returns, there are 5,068 foundations and nonprofits that provided grants to at least one university. These funders distributed:
- $93.9B in total grant dollars
- $12.9B to higher education
- $8.9B to R1 universities
- $7.9B for R1 research and infrastructure*
Source: 2023 IRS Data on U.S. Foundations and Nonprofits
How This Compares to Federal Funding
These figures are consistent with NSF's Higher Education R&D (HERD) survey, which estimates that nonprofit funders provided about $6.7B in university research support in 2023. That is just 6% of total higher education research funding and pales in comparison to the $59.7B in research funding from the federal government.
The Opportunity
This is where the opportunity comes into focus. The $93.9B above reflects the total philanthropic capacity of foundations and nonprofits that already support higher education. Only a small share of that currently reaches R1 research.
If you also include funders that have not yet given to colleges or universities, the ceiling is even higher.
Private foundation and nonprofit funding is often treated as an afterthought. However, it could grow into a much more substantial second pillar of funding alongside federal support, rivaling or exceeding other sources such as:
| Funding Source | Amount |
|---|---|
| Federal government | $59.7B |
| Institutional funds | $27.7B |
| Industry | $6.2B |
| Nonprofit funders | $6.7B |
| State and local government | $5.5B |
The Bottom Line
The philanthropic funding landscape represents a significant untapped opportunity for R1 research institutions. If you're interested in the data or in identifying funders that support your peer institutions but not you, feel free to .
R1 grants excluding scholarships and student aid