About Community Foundations

A community foundation is a tax-exempt public charity created by and for the people in a local area. It enables people with philanthropic interests to easily and effectively support the issues they care about — immediately, or through their will. Donors can establish a charitable fund at the foundation by contributing a variety of assets and may also recommend grants — in their name, if they choose — to nonprofit groups they want to support.

Community foundations are one of the fastest growing sectors of philanthropy in the United States today. They build and strengthen communities by making it possible for a wide range of donors to create permanent, named component funds to meet critical needs. Community foundations, through philanthropy that is visionary, diverse, and inclusive, have become catalysts for improvement within urban centers and in rural settings.

There are more than 700 community foundations in the United States. The idea has spread to places as diverse as Australia, Canada, Germany, Japan, Mexico, Poland, Russia, South Africa, and the United Kingdom. Outside of the U.S. there are 470 community foundations in 41 countries.

Community foundations in the United States currently hold over $35 billion in assets and are located in almost every region and/or state in the country. In 2003, community foundations gave approximately $2.5 billion to a wide variety of nonprofit activities: urban affairs, the arts, education, environmental projects, health, and disaster relief.

Community foundations offer donors many services and benefits. They routinely work with families, individuals, estate and financial planners, and attorneys to design gift plans that fit every economic situation ensuring that donors receive the most benefit from their charitable contributions and that their philanthropic dollars are used to the fullest extent.

Community foundations accept gifts of various sizes and types from private citizens, local corporations, other foundations, and government agencies. Nearly every type of gift — real estate, closely held stock, and insurance — can be contributed to a community foundation. Gifts are made from bequests and by living donors through various types of funds and deferred giving vehicles.

Community Foundations share the common goal of serving donors, nonprofit organizations, and the community as a whole. In addition to this, one of a community foundation’s special functions is to evaluate and help coordinate the needs and services in its communities, so that charitable gifts are used effectively to fulfill a community’s most critical needs.

See article from Motley Fool® "Community Foundations and Philanthropy"

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