Funders are more accountable and transparent but progress on improving diversity remains a challenge, a report is warning.

The Foundation Practice Rating (FPR) has found progress among the 100 grant makers analysed in improving practices around three areas looked at: accountability, transparency and diversity.

Now in its fifth year the Rating system’s report for 2025/26 found that 12 had achieved its highest A grade, the most it has recorded.

Also, three achieved this highest grade across all three areas, a feat only achieved by one grant maker in the previous four years.

In addition, the lowest number of foundations to achieve the lowest grade of D in all three areas is down from 12 last year to seven this time around.

Diversity challenges

But FPR it found that “diversity remains the weakest domain” adding that “this is consistent with all previous years”.

It added: “That said, scores here have improved. Whereas only one foundation had ever previously achieved A on diversity, three did so this year; the number of foundations scoring zero in diversity fell – from 13 last year to five this year; and most of the criteria on which average scores climbed the most were in diversity.

“However, diversity was the sole domain on which any foundation scored zero.”

Danielle Walker Palmour, director at the charity Friends Provident Foundation, which publishes the Ratings system, said: “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 the people they work with and support.”

Among foundations to secure an A rating across accountability, transparency and diversity is Mission 44, which was created by Lewis Hamilton to support young people’s projects.

“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,” said Mission 44 chief executive Jason Arthur.

“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.”

Also securing an AAA rating across all three areas is Cheshire Community Foundation and Wiltshire and Swindon Community Foundation.

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