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 700 community foundations in the United States, 61 of which are in the State of Kansas. The community foundation model has spread throughout the world, including the Caribbean, Australia and New Zealand, Canada and Mexico, Eastern and Western Europe, Russia and the former Soviet Republics and is rapidly expanding across Africa.

 

Community foundations in the United States hold approximately $44.8 billion in assets. In 2005, community foundations gave $3.2 billion to a wide variety of nonprofit activities, including 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 received an estimated $5.6-billion in 2005, a 34-percent increase over the previous year’s $4.2-billion total. They accept gifts of various sizes and types from private citizens, corporations, government agencies and other foundations. Nearly every type of gift—including real estate, closely held stock and artwork—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 range in size from the largest community foundation, the Tulsa Community Foundation, with assets totaling more than $2.3 billion, to some with assets of $100,000 or less. The funds are invested in diverse portfolios and sound investment management is a major aspect of community foundations’ work.

 

All share the common goal of serving donors, nonprofit organizations and the community as a whole. In addition, 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.