Fast Facts about Community Foundations

Community foundations are one of the fastest-growing sectors of philanthropy. There are more than 668 in the U.S., and many others elsewhere in the world. U.S. community foundations as a group hold more than $23 billion in financial assets. Individually, they range in size from less than $100,000 in assets to more than $1.8 billion. Regardless of size, all share the goal of serving donors, partnering with nonprofits, and improving the quality of life in their communities.

To learn more, visit the Council of Foundations website.

A community foundation is a nonprofit public charitable organization that is:

A vehicle for personal philanthropy

An endowment supporting community needs through grants

A legacy for the future

A platform for "building community"

A place where charitable dreams become reality
The first community foundation was established in 1914 by Frederick H. Goff, a banker in Cleveland, Ohio, who wanted to help his clients organize their personal philanthropy. The foundation he established is today the Cleveland Foundation, the oldest and second largest community foundation in the country.
Another impetus for the establishment of the field was the passage one year earlier, in 1913, of the Federal Income Tax law. Gifts to these new entities, which soon began to spring up around the country, were tax deductible to donors.
Community foundations are one of the fastest growing sectors of philanthropy. Today there are over 668 community foundations in the United States, and there are many others in Europe, Latin America, Japan, New Zealand, Australia, and Africa.

Community foundations range in size from the largest—the New York Community Trust, with assets of over $1.8 billion—to some with assets of $100,000 or less. Nationally, they hold more than $23 billion in financial assets. Regardless of size, all share the goal of serving donors, partnering with nonprofits, and improving the quality of life in the community as a whole.
The fastest area of growth is through the establishment of affiliate foundations or community funds, which might be described as "branch offices" of a larger or "lead" foundation. These community funds are usually found in rural or other areas at some distance from the lead foundation, and provide community foundation services to their local area that would be difficult for the lead foundation to provide.

Community foundations are different from other nonprofit organizations. Other nonprofits are organized to serve one area of community need, such as children, the homeless or the aging. Community foundations are organized to serve as a repository of funds from which grants may be made each year to other nonprofit organizations, according to the wishes of donors.
One hallmark of community foundations are that they manage both endowed and non-endowed funds. Depending on the wishes of the donor, gifts may be used immediately for the good of the community, or they may be held perpetually in an "endowment," where the principal is never touched. The endowed funds are invested and the income from this investment is made available as grants to community nonprofits.
Community foundations routinely work with families, individuals, estate planners, and attorneys to assist donors to realize their philanthropic vision, receive the most benefit from their charitable contributions and to ensure that their charitable 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. Gifts of real estate, publicly traded and closely held stock, artwork and insurance can be contributed to the foundation. Donors may contribute during their lifetime and be personally involved in local philanthropy, or create a "planned gift" that will perpetuate their charitable interests after their death.
Community foundations fill a unique role in their communities. They are literally the center for philanthropy. Their mission is to provide the link between the financial resources within a community and its charitable needs.
You may learn more about community foundations by going to the Council of Foundations website.

	A vehicle for personal philanthropy
	An endowment supporting community needs through grants
	A legacy for the future
	A platform for "building community"
	A place where charitable dreams become reality

Building rural assets to build rural livelihoods

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Fast Facts about Community Foundations