Good news for charities as annual Foundation Practice Rating finds that funders’ practices have improved

The latest Foundation Practice Rating (FPR) report reveals significant progress in UK charitable foundations’ practices in diversity, accountability, and transparency –marking the strongest results in the initiative’s five‑year history.

The annual sector-wide assessment of 100 UK grant-making foundations has seen the best ratings this year, and statistically significant improvements since it began assessing foundations’ practices five years ago. This year:

• 12 foundations achieved an overall A grade (the highest grade) – the highest number ever to achieve this in one year.

• three foundations achieved an A in each domain (diversity, accountability, and transparency) and an A overall – only one foundation has ever achieved this in the four years previously.

• the number of foundations that achieved a D (the lowest grade) on all three domains is the lowest ever – seven (down from 12 in Year Four).

• every criterion was achieved by at least one foundation – demonstrating that the rating isn't looking for the impossible. (Every criterion has been achieved every year.)

“Five years ago, the Foundation Practice Rating found that as foundations we had work to do to improve our practices, especially in diversity,” said Danielle Walker Palmour, Director of Friends Provident Foundation who established the initiative to help assess and improve practices across the sector.

“These results show that as a sector, we're making headway. There's still work to do, but improvements have been made. That’s good news for the charities who come to us for funding. And it’s positive news, ultimately, for those they work with and support.”

One of the foundations to get As across the board is Mission 44, created by Sir Lewis Hamilton to build a fairer, more inclusive future for young people around the world. The foundation is driving change so every young person can thrive in school and access great careers in STEM.

Mission 44 CEO Jason Arthur said: “Since our launch, we have been committed to creating fair and inclusive practices across everything we do, so we are incredibly proud to have been awarded the AAA rating.

“Central to our approach is valuing and listening to people from diverse backgrounds - particularly young people - ensuring their voices and perspectives shape our work and the impact we aim to achieve.”

Community Foundations continue to outperform the broader sector. The seven in this year’s cohort all scored an A or B overall.

Emma de Closset, Chief Executive, UK Community Foundations said: “Community foundations are rooted in the places we serve, and that closeness shapes how we fund locally. We listen, we stay transparent and we hold ourselves accountable to the people who rely on us.

“It is fantastic to see that community foundations are consistently performing strongly in the Foundation Practice Rating. These results recognise the values that guide our work every day: trust, equity and a commitment to making funding more accessible and responsive to local need.”

“Philanthropy and grant giving is changing,” added Danielle. “We saw an increasing number of paused or closed foundations this year and expect that to continue. In addition, we’ve seen staff and trustees of some funders being targeted for their work, which raises issues about whether transparency is always possible or sensible.

“We know that even with this changing context, how we fund matters just as much as what we fund. That’s why, as a funder of the Foundation Practice Rating, we’re committed to supporting this assessment of funder practices and encouraging positive change across the sector.”

Download the report: foundationpracticerating.org.uk/cohort-results-2025-2026