Unlocking the full potential of philanthropy is key to advancing sustainable development worldwide. At a time when low- and middle-income countries face intensifying pressures – from climate shocks to geopolitical tensions and rising debt burdens – and official development assistance (ODA) budgets are expected to decline by 9–18% in 2025, making better use of all available sources of finance is increasingly urgent.
In this context, the third edition of the OECD Private Philanthropy for Development report offers a detailed picture of how foundations are contributing to development efforts and where further collaboration could be strengthened, drawing on extensive data on financial flows, partnerships and operating models.
Between 2020 and 2023, philanthropic funding for development reached USD 68.2 billion. While this represents a modest share compared to ODA (equivalent to 10% of volumes), philanthropy’s added value lies in its ability to support higher-risk initiatives, respond flexibly to emerging needs and test new solutions that can later be expanded by public or private actors.
The findings reveal that co-financing is extensive, with more than two-thirds of surveyed philanthropies engaging in multiple collaborative projects with over 300 partners. The report also points to philanthropy’s potential to act as a connector across development actors, helping to unlock investment and support innovative approaches.
Furthermore, the report shows how concentrated the sector remains. The top ten largest international foundations provide three quarters of total cross-border financing. In terms of sectors, health continues to receive the largest share, followed by education, support to civil society, and banking and financial services. Finally, Africa is the primary destination for cross-border philanthropic flows: the continent received 17.6 billion in funding over 2020-2023, representing 33% of total cross-border flow.
An important development is the growing role of domestic philanthropy in middle-income countries, where local resources are increasingly supporting essential services and reducing reliance on external funding. China mobilised USD 8.3 billion in domestic philanthropic funding, accounting for 94% of the country’s total philanthropic contributions; India mobilised USD 4.0 billion (65%), and Mexico USD 2.9 billion (88%).
The report also points to a number of challenges. Direct support to local organisations remains relatively limited, representing 11% of cross‑border philanthropic flows over 2020-2023, and funding is often short-term and earmarked for specific projects. In addition, while many foundations monitor their activities, more robust approaches to measuring impact are not yet widely adopted. Expanding the use of diverse financial instruments and strengthening local partnerships could further enhance effectiveness.
The OECD thus encourages foundations, governments, and development partners to foster transparency while further collaborating to mobilise and leverage more diverse sources of finance, focus on longer-term flexible support, and strengthen collaboration and clarify divisions of labour. At the same time, governments and development finance institutions can play a key role by creating supportive regulatory environments and facilitating partnerships across sectors.