New Report Reveals Stark Philanthropic Inequities in Central Appalachia
FOR IMMEDIATE RELEASE
Contact: Jess Mullins Fullen, Programs and Learning Manager
Email: jess@appalachiafunders.org
Website: www.appalachiafunders.org
“State of Funding in Appalachia” Launches National Conversation About Gaps, Resilience, and Urgency for Action”
Hazard, KY (May 27, 2025) – The Appalachia Funders Network (AFN) today released The State of Funding in Appalachia, a groundbreaking new report that offers the first comparative analysis in nearly a decade on philanthropic investment in the region. It is also the first to disaggregate data between rural and urban Appalachian communities, surfacing rural-specific disparities that have long gone unmeasured. Presented at a virtual briefing on May 23rd, the findings have already sparked national dialogue about the structural disparities rural Appalachians face—and the urgent need for philanthropic realignment.
The report, conducted by Dr. Brad R. Fulton of Indiana University’s Lilly Family School of Philanthropy and his research team at Smart Charity, represents one of the most comprehensive examinations of philanthropy in Central Appalachia to date. It builds upon the legacy of National Committee for Responsive Philanthropy’s previous As the South Grows report, while introducing region-specific data previously unavailable to funders, nonprofits, and policymakers alike.
“Appalachia is in a moment—defined by compounding natural disasters, political threats, and the erosion of civic infrastructure,” said Dr. Ryan M. Eller, Executive Director of the Appalachia Funders Network. “But this report also shows that our region is not a void; it is a model of reinvestment when given the tools. What we lack isn’t willpower, amazing leaders, or scalable solutions—it’s equitable access to resources.”
Key Findings from the Report Include:
Appalachian dollars stay local: 67% of philanthropic dollars from private foundations located in Central Appalachia remain in the region—a striking contrast to just 40% in the San Francisco Bay Area. In other words, when Appalachian funders exist, they significantly outperform their peers in regional reinvestment.
Weak civic infrastructure limits capacity: Dozens of Appalachian counties have little to no nonprofit presence and face chronic underinvestment. In fact, 30 counties in the region have no active foundation, and 66 counties have less than $1 per person in philanthropic assets.
Dependence on outside resources: 73% of all philanthropic investment in Appalachia originates from funders outside the region, compared to 55% in the S.F. Bay Area. This external dependency, born from generations of extraction, is exacerbated by disparities in the distribution of philanthropic funding:
Total Grants Received Per Capita$1,013 S. F. Bay Area
$306 U.S. average
$114 Rural U.S. counties
$93 Central Appalachia
$77 Rural Central Appalachia
Structural disinvestment isn’t just historical—it’s ongoing: While communities are still recovering from Hurricane Helene, recent flooding, and tornadoes, proposed federal budget cuts and new tax increases on philanthropy could further destabilize already-vulnerable civic organizations in Central Appalachia.
The findings make clear that philanthropy must do more to show up equitably in places like Central Appalachia—but it cannot do this work alone. Public systems and civic infrastructure are critical to sustained, long-term impact.
As Eller noted in the report preview, “Even if private foundations spent down their endowments today, it would only fund essential services for 76 days. Philanthropy cannot and should not be expected to replace the role of public institutions—but we can, and must, be bold enough to invest in the civic muscle that keeps our democracy alive—and begin to reinvest, with justice, in the places that powered this country’s prosperity.”
About the Report and AFN
The full report will be available on the Appalachia Funders Network website beginning May 27th, and additional findings will be released throughout 2025. To request an interview with the research team or AFN leadership, please contact Jess Mullins Fullen at jess@appalachiafunders.org.
The Appalachia Funders Network (AFN) is a collaboration of over 75 philanthropic institutions and partners across six states, working to accelerate an equitable transition in Central Appalachia. AFN members collectively oversee more than $461 million in annual grantmaking, and through strategic learning, investment, and advocacy, the Network strengthens the region’s resilience, infrastructure, and civic leadership.