What is a Community Foundation?

Community foundations are one of the fastest-growing sectors of philanthropy in the United States. They are tax-exempt public charities created by and for people in local areas.

The first community foundation was established in Cleveland, OH in 1914. Today there are over 700 throughout the United States, stewarding $31 billion in combined assets. In 2009, over $4.1 billion in grants were awarded to nonprofits.

How a Community Foundation Works

Each community foundation is made up of a collection of charitable funds established by various donors, then pooled and invested by professional managers so the income provides an ongoing, steady resource for community giving.

Those who conduct their charitable giving through a community foundation can make contributions for the general benefit of the community, or designate their funds for specific purposes, causes or nonprofit organizations. Donors can contribute to local, national and international causes through their community foundation. There are no geographic boundaries to the term “community.”

Advantages of Partnering with a Community Foundation

Donors establish funds, contribute to existing funds or support the leadership work of a community foundation for many reasons.

Among the benefits of managing your charitable giving through a community foundation are:

You can name your fund

You receive immediate tax benefits, even if you wait to recommend grants from the fund you establish

Your fund benefits from professional financial stewardship

You may give anonymously

You can leverage your gifts through the foundation's collective giving funds

You can support critical leadership work addressing the community's key regional issues

Learn more about how you can start giving