What is a Community Foundation?
Community foundations make up 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 650 community foundations in the United States, more than 470 of which are members of the Council on Foundations. The idea has spread throughout the world, including Australia, Canada, Germany, Italy, Japan, Mexico, New Zealand, Poland, Russia, Slovakia, South Africa and the United Kingdom. It has been estimated that there are at least 365 community foundations outside the United States and Canada.
Community foundations in the United States hold approximately $29.7 billion in assets and are located in almost every region and/or state in the country. In 2002, 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, attorneys, and estate and financial planners 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, artwork 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 received an estimated $3.2 billion in gifts in 2002.
Community foundations range in size from the largest community foundation, the New York Community Trust, with assets totaling more than $1.7 billion, to some with assets of $100,000 or less. The funds are invested in diverse portfolios and management is a major aspect of community foundations' work. All share the common goal of serving donors, nonprofit organizations and their communities. In addition, one of a community foundation's special functions is to evaluate and help coordinate the needs and services in its community, so that charitable gifts are used effectively to fulfill a community's most critical needs.