Trends and Implications for Research Labs

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Introduction

The United States research enterprise is undergoing a structural shift. For more than 70 years, federal agencies have funded the majority of basic and applied science in universities and nonprofit research institutions. Political turbulence and budgetary constraints have weakened that foundation. At the same time, philanthropy has become a vital, though comparatively modest, source of research support.

In 2023, private donors and legacy endowments contributed approximately $24.2 billion, representing about 21 percent of total university research funding.¹ With federal science budgets under pressure, many research labs are asking whether private donations can compensate for potential shortfalls.

This article argues that philanthropic funding, while essential, cannot simply replace robust public investment. Instead, scientific leaders should treat philanthropy as a catalytic complement to federal funding and a mechanism to de-risk high-impact ideas, fund pilots, invest in people and build bridges with aligned communities and interest groups for more support. It is time to stop depending entirely on federal funding and diversify funding channels with purpose.

A 70-Year View of U.S. Research Funding

The Science Philanthropy Indicators Report tracks research and development expenditures from 1953 through 2023 using National Science Foundation data. The most recent update shows:

• Basic research accounts for approximately 15 percent of total R&D spending
• Applied research accounts for another 18 percent
• Universities and nonprofit research institutions spent $114.7 billion on research in 2023
• The federal government provided $58.6 billion, about 51 percent of total university research funding

Federal support has fallen significantly as a share of total funding since the 1960s, when it exceeded 70 percent.¹

Philanthropy contributed $16.8 billion in current giving and $7.4 billion from legacy endowments, totaling 21 percent of university research support. Universities themselves covered approximately $19.2 billion, or 17 percent, through tuition, patent income, and clinical revenue.¹

Two structural trends emerge:

1. Federal dollars are declining as a proportion of total research support.
2. Philanthropic giving is growing but remains substantially smaller than federal investment.

Even a doubling of philanthropic funding would not fully offset a large federal contraction. Public funding remains the anchor of the research ecosystem.

Growth in Philanthropy Is Concentrated

Private giving does not distribute evenly across disciplines. University R&D spending is heavily concentrated in the life sciences, which received $66.8 billion in 2024.¹ Physical sciences, geosciences, computer science, and social sciences receive comparatively less.

Philanthropy often gravitates toward high-visibility domains such as neuroscience, artificial intelligence, climate science, and quantum research. While these areas benefit from donor enthusiasm, many other disciplines remain underfunded.

Scientific leaders must be prepared to explain how their work addresses societal needs and why philanthropic capital is appropriate for their field.

Federal Funding Still Anchors the System

The Science Philanthropy Alliance emphasizes that philanthropy is designed to complement, not replace, federal funding.¹ Federal dollars support:

• Long-term infrastructure
• Graduate training
• Core facilities
• Multi-year project continuity

Private donors typically support shorter-term initiatives and high-risk projects that lack sufficient preliminary data to secure federal grants. Physics Today reported in 2026 that major philanthropies are selectively mitigating the damage from federal funding instability, particularly by supporting early-career scientists and vulnerable research areas such as climate science.²

Foundation leaders explicitly describe their role as filling gaps rather than gulfs.² Philanthropy often provides proof-of-concept funding that allows researchers to compete successfully for larger public awards later.

The Role of Philanthropy: Filling Gaps, Not Gulfs

Private funding for basic and applied university research represented roughly 15 percent of total funding in 2023, increasing to 21 percent when legacy endowments are included.²

A survey conducted by the Science Philanthropy Alliance found that nearly 80 percent of philanthropic organizations were adjusting or considering adjustments to their grant-making strategies in response to federal funding shifts.² These adjustments include:

• Multi-year fellowships
• Bridge funding for postdoctoral researchers
• Targeted investments in climate resilience and pandemic preparedness

Even so, philanthropic leaders caution that their funding cannot sustain the full scale of modern research enterprises.

Advantages of Private Giving

While philanthropy lacks the scale of federal funding, it offers distinct advantages:

Speed
Private donors can respond quickly to emerging opportunities or crises.

Risk Tolerance
Foundations can fund high-risk, high-reward research that may not survive federal peer review.²

Targeted Support
Philanthropy can prioritize neglected fields or marginalized communities.

Capacity Building
Donations can fund equipment, platforms, and training that strengthen entire ecosystems.

Research labs should articulate how philanthropic funding accelerates progress, unlocks federal leverage, and produces measurable societal impact.

Strategies for Research Labs Seeking Philanthropic Support

1. Position Research Within the Broader Funding Landscape

Funders evaluate alignment and leverage. Labs should explain how their work complements federal investment and addresses clear funding gaps.

For example, philanthropic funding for climate change mitigation has more than tripled since 2015, yet still represents a small share of total global philanthropic giving.³ Labs working in climate resilience can demonstrate both momentum and unmet need.

2. Develop High-Risk, High-Reward Proposals

Because philanthropies seek to de-risk frontier science, proposals should emphasize:

• Novel hypotheses
• Transformative potential
• Clear proof-of-principle milestones
• Pathways to subsequent federal funding

Cross-disciplinary collaboration and community partnerships strengthen credibility.

3. Invest in Relationships and Stewardship

Philanthropy is relationship-driven. Labs, and more specifically their PIs, should:

• Provide transparent reporting
• Share milestone updates
• Invite donors into the narrative of discovery

Public trust is becoming increasingly fragile. Research on scientific populism shows that public skepticism rises when scientific institutions appear detached from everyday concerns.⁴ Clear, accessible communication is essential.

4. Offer Flexible Giving Options

Donors increasingly use recurring giving models and donor-advised funds.

The Association of Fundraising Professionals reports that subscription-style giving is expanding rapidly, providing predictable support for nonprofits.⁵ Donor-advised funds are also growing in popularity across income levels.⁵

Labs should build infrastructure to accept recurring gifts and DAF distributions while clearly explaining how smaller contributions compound into measurable impact.

5. Provide Public Impact Narratives

Clear communication reduces skepticism. The University of Florida highlights the importance of explaining scientific funding in accessible, non-partisan language.⁴

Research leaders should:

• Use plain language
• Illustrate community benefit
• Emphasize collaboration and ethical guardrails

When donors see alignment between research and public value, investment follows.

6. Leverage Digital Visibility

Labs and PIs should maintain structured, well-cited digital content that improves search visibility and knowledge dissemination. Clear headings, authoritative citations, and concise summaries increase discoverability and credibility.

Conclusion

Philanthropy plays a growing and important role in the research ecosystem. Yet it cannot replace federal investment.

Data from the Science Philanthropy Indicators Report show that private giving represents approximately 21 percent of university research support, while federal agencies still provide more than half.¹ Major foundations emphasize that their role is to de-risk early-stage ideas and stabilize vulnerable research areas, not to underwrite entire research systems.²

Research leaders should therefore advocate for sustained public funding while engaging philanthropy as a strategic partner.

When positioned thoughtfully, philanthropic capital can:

• Bridge temporary funding gaps
• Accelerate proof-of-concept work
• Support workforce stability
• Strengthen long-term institutional resilience

But it cannot substitute for the structural scale of federal investment.

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References

1. Science Philanthropy Alliance. Science Philanthropy Indicators Report 2025 – Introduction & Key Findings.
   https://indicators.sciphil.org/key-findings
2. Toni Feder. “Philanthropies Selectively Mitigate Damage from Lost Federal Science Funding.” Physics Today, February 10, 2026.
   https://physicstoday.aip.org/news/philanthropies-selectively-mitigate-damage-from-lost-federal-science-funding
3. ClimateWorks Foundation. Funding Trends 2022: Climate Change Mitigation Philanthropy. 2022.
   https://www.climateworks.org/report/funding-trends-2022/
4. University of Florida. “Support for Scientific Funding Doesn’t Have to Be Partisan — But Scientists Must Make the Case.” December 19, 2025.
   https://news.ufl.edu/2025/12/scientific-funding/
5. Association of Fundraising Professionals. “5 Fundraising Trends for 2025.” January 21, 2025.
   https://afpglobal.org/5-fundraising-trends-2025