Why $2 Trillion in Charitable Funds Isn’t Reaching Nonprofits

More than $2 trillion designated for charitable purposes is sitting in foundations and donor-advised funds. Why isn’t more of it reaching the communities that need it now?In this episode of All About Capital Campaigns, Amy Eisenstein speaks with Glen Galaich, CEO of the Stupski Foundation and author of Control: Why Big Giving Falls Short.Drawing on more than 25 years of experience with major donors, foundations, and community leaders, Glen examines how donor control shapes modern philanthropy and prevents charitable resources from achieving their full potential.Glen once helped donors develop highly strategic approaches to philanthropy. Over time, he began questioning an assumption at the center of that work: that people who accumulated great wealth were inherently best equipped to decide how social problems should be solved. He explains how this donor-centered model can overlook the knowledge, priorities, and solutions already present within communities.Amy and Glen explore why private foundations often prioritize protecting and growing their portfolios. Board members may feel more comfortable discussing investments, perpetuity, and family legacy than examining the immediate needs of nonprofits. That preference can turn the preservation of the foundation into a higher priority than the charitable purpose the money was intended to serve.Glen also challenges the idea that foundation assets remain private money. Once donors place money in a charitable foundation and receive a significant tax benefit, he argues, they assume an obligation to act as public stewards of those resources. The central question shifts from what feels comfortable for the donor to what will benefit the public.For nonprofit leaders and fundraisers, this creates a difficult power dynamic. Asking a funder for what an organization truly needs can feel risky. Yet asking only for what the funder appears willing to provide reinforces chronic underfunding. Glen encourages organizations to communicate the real cost of their work, the urgency of community needs, and the consequences of leaving charitable assets invested rather than putting them to use.The conversation also examines community-led philanthropy, donor-advised funds, foundation payout rates, trust-based grantmaking, and the difference between spending out and spending down. Glen shares lessons from the Stupski Foundation, which expects to distribute approximately $650 million over ten years and conclude most of its grantmaking operations in 2027.Spending down does not have to mean closing a foundation. Glen describes how foundations can release a meaningful portion of their assets during periods of urgent need and then continue operating with a smaller endowment. Even a modest shift away from perpetuity could direct billions of additional dollars to nonprofits and communities.This episode offers nonprofit executives, development professionals, board members, major donors, and foundation leaders a candid look at who controls charitable money, whose expertise shapes funding decisions, and what could happen if philanthropy placed greater trust in the people closest to the challenges.In this episode:00:00 Why foundations and major donors can frustrate nonprofits00:52 Introducing Glen Galaich and Control03:52 Glen’s path into philanthropy06:46 The rise of donor-centered strategic philanthropy09:19 Why Glen began questioning the traditional model12:26 The $2 trillion charitable bottleneck16:54 How fundraisers can challenge donor control19:40 Asking funders for what nonprofits truly need23:05 Why communities should shape funding decisions26:38 The Stupski Foundation’s $650 million spend-down30:56 Starting difficult conversations with funders32:18 Glen’s challenge to fundraisers and donorsLearn more about Control: Why Big Giving Falls Short: https://stupski.org/control/Purchase the book from Wiley: https://www.wiley.com/en-us/Control-p-9781394352425