This report, “Growing Local Philanthropy: The Role and Reach of Community Foundations,” presents the findings of a 2004 survey conducted by the Aspen Institute Community Strategies Group on geographic component funds (GCFs) within U.S. community foundations. Here are the key findings:
- Prevalence and Growth of GCFs: GCFs are widespread, with almost two-thirds of responding community foundations having at least one. There were 1,079 GCFs reported in mid-2004, a 132% increase since 1998, indicating significant growth. Most GCFs were established in the 1990s or later, and the trend is expected to continue, especially in rural areas.
- Asset Development: GCFs hold an estimated $1.12 billion in endowed assets, representing about 14% of the collective endowed assets of the surveyed foundations. Half of the foundations with GCFs use financial match incentives (often from their own unrestricted funds) to help establish or grow them. GCFs tend to build more endowed than non-endowed assets.
- Organization and Governance: Most GCFs (71%) are held as advised funds within the lead foundation. 20% of GCFs have independent 501(c)(3) status. GCFs are more often developed in response to local approaches (53%) rather than through intentional programs (27%). Lead foundations are developing criteria and policies for GCFs, with local leadership and philanthropic potential being key factors.
- Staffing: 26% of GCFs have their own staff, though this is a small percentage of the total. The lead foundation’s CEO is most often involved in GCF development and administration (72%). While GCF boards or staff primarily handle asset development (56%), GCFs are not a core activity for most lead foundations, with 79% spending 20% or less of their core staff time on them.
- Profile of Responding Foundations: The survey sample of 241 foundations (36% completion rate) is generally representative, though it overrepresents larger foundations and underrepresents those in the Midwest, while slightly overrepresenting those in the South. Nine in ten responding foundations serve at least some rural area.
The report highlights the newness and growing prominence of GCFs, especially in extending philanthropic coverage to previously underserved rural areas. It also identifies numerous topics for future research to further understand the impact, management, and business models of GCFs.
