Foundations have continued to perform poorly on diversity, with none of 100 organisations scoring the top grade in this area, a report has found. 

This year’s Foundation Practice Rating report, which is published annually by the Friends Provident Foundation, has found that diversity remains the weakest area for UK foundations.

The report annually analyses a random sample of 100 grantmakers, ranking them in grades from A to D in the areas of diversity, accountability and transparency, as well as giving them an overall rating.

The sampled foundations were asked to answer 101 questions, 56 of which were criteria that contributed to the foundation’s score and rating. 

The research is carried out by Giving Evidence, a consultancy specialised in the production and use of evidence in charitable giving.

According to the 2024/25 report, none of the 100 foundations analysed were given the top rating for diversity this year, with 44 per cent of the foundations ranked D in this area, the lowest possible rating.

In the four years of the report, only one grade A has ever been awarded for diversity.

According to the report, less than 2 per cent of the available points were scored for having a plan with numerical targets to improve the diversity of trustees.

Just 4 per cent of possible points were scored for having a plan to improve the diversity of staff teams, while just 6 per cent of possible points were scored for having targets to improve staff diversity.

Of the 100 foundations analysed, 64 per cent were graded A for transparency, with 11 per cent ranked B, 12 per cent ranked C and 13 per cent ranked D.

Only 10 per cent were graded A for accountability but 33 per cent were ranked B in this area, followed by 28 per cent ranked C and 29 per cent ranked D.

Just 8 per cent of the foundations were ranked A overall, taking all three categories into consideration. Some 36 per cent were graded B, 34 per cent were rated C and 22 per cent were rated D.

The research also found that 21 out of the 100 foundations sampled had no website in 2024/25, compared with just 13 the year before. 

The report adds that some other foundations have “overly cluttered or limited websites that impede finding basic information”.

None of the 12 foundations that were rated D in all three areas had a website, the report adds.

The research found that foundations with five or fewer trustees were much more likely to be ranked at a D than foundations with more trustees. It also found that ratings of A overall were unique to foundations with six or more trustees.

The number of staff also affected the ratings, with poor ratings of D overall being unique to foundations with 10 or fewer staff members.

Community foundations “continue to outperform the broader sector”  by an “appreciable margin”, the report says, with all community foundations in 2024/25 being rated B or C overall.