Community Foundation

What is a community foundation?

Community foundations are tax-exempt, non-profit, autonomous, non-sectarian, philanthropic institutions dedicated to broadly improving the quality of life in a specific geographic area.

  • Building permanent funds: Community foundations strive to create lasting funds that benefit a community for years on end. These funds are created by donations from individuals, families, businesses, and charities.
  • Investing and distribute: The funds are invested, and a portion of the annual earnings is used to support local non-profits through grants and projects.
  • Governed by a local board: A board of directors, representing the community, oversees all funds and ensures they benefit the area.

The I.R.S recognizes community foundations as 501(c)(3) public charities because they receive broad public support and are governed by representatives of the community they serve.

How does a community foundation work?

A community foundation is governed by a board of directors of community leaders and is administered by professional staff. Operating expenses are paid from an annual fund fee and from gifts designated by donors to cover foundation operating and program costs.

The purpose of a community foundation:

  • Grow a lasting resource: They build an endowment (a permanent fund) that generates income to support grants and charitable activities that benefit their community over the long term.
  • Help donors give back: They assist donors in achieving their charitable goals by providing expert guidance and a variety of giving options.

The benefits of a community foundation:

  • We explain your options: We educate you on different charitable giving methods, like donor-advised funds, endowments, and bequests.
  • We personalize your approach: We help you find the best giving strategies to match your passions and financial goals, including tax benefits.
  • Guide your giving: Play an active role in suggesting how your gift is used to support the causes you care about most.
  • Build your legacy: Establish a named fund in your honor or in memory of a loved one.
  • Our staff and board members live and work here, giving us firsthand knowledge of the challenges and opportunities facing our community.
  • We keep a close eye on local needs in areas like education, economy, arts, and health.
  • We carefully track local organizations and programs to ensure our grants and resources are directed to the areas of greatest need and impact.
  • Sustainable support: We build endowments to provide a permanent source of funding for community grants.
  • Maximum impact: We prioritize grants that create significant positive change.
  • Local leadership: Our board is made up of community leaders who are passionate about making a difference.
  • Innovation: We encourage and support the development of new organizations and programs to address emerging needs.
  • Adaptability: We are flexible and responsive, redirecting funds as community priorities evolve.
  • Collaboration: We bring people and organizations together to solve problems and create positive change.