Foundation analysis 2025: The Fourth Path to Value Creation
- Apr 22
- 2 min read
Markus provided an in-depth insight into the development of foundations and their growing role as independent societal actors. He highlighted how foundations increasingly see themselves as a “fourth path to value creation,” distinct from the state, the private sector, and civil society through their ability to act strategically, independently, and with a long-term perspective.
The Changing Role of Foundations
Foundations are no longer passive donors, but active actors creating systemic change.
They have become more responsive to societal developments and often act faster than both the state and the private sector, for example during COVID-19.
Foundations do not operate under democratic principles, but through social contracts, where they define their own role in relation to key themes such as democracy, sustainability, and culture.
Four Major Megatrends Shaping Foundations’ Work:
Democracy - A growing concern for the resilience of democracy means that many foundations now support projects that promote democratic participation, inclusion, and civic engagement.
Preparedness & Security - Foundations are considering their role in a geopolitically uncertain time, including how culture can contribute to societal resilience.
Transparency - There are increasing demands for openness regarding foundations’ priorities and grant-making. Cultural institutions can strengthen their case by highlighting how their work supports this agenda.
Forms of Collaboration - Foundations are moving away from traditional donations and towards partnerships, alliances, and capacity building.
What Does This Mean for Cultural Institutions?
Do not just read the strategies - engage in dialogue! Foundations often shift focus faster than their official strategies reflect. The key is understanding where they are heading.
Think in terms of partnerships and mobilisation. Foundations do not only want to fund projects, but also to engage citizens and create long-term impact.
Look beyond cultural foundations. Many foundations that have not traditionally supported culture are now open to collaborations if they see links to democracy, health, or social initiatives.
Be clear about your social value. Foundations invest in projects that create real societal change - how can culture play a role in that?
Conclusion
Foundations are becoming an increasingly important source of funding for the cultural sector and are likely to overtake the state as the largest actor in this field. However, to succeed in working with foundations, cultural institutions must think strategically, network-oriented, and long-term - and remain in dialogue with foundations about their current priorities.
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