Community Foundations

Community foundations offer numerous grantmaking options for donors, and many operate their own donor-advised funds. Donors can support permanent endowments, special interest or field of interest funds or project-based funds or join giving circles. Depending on the governance structure of the community foundation, a board, professional staff or volunteers from the community may be involved in identifying grant recipients. A board of directors or trustees determines how the foundation’s endowment is invested and maintains fiduciary responsibility over grantmaking.

In place of a governing body, the Organization of the Council on Foundations’ Community Foundations National Standards grants an accreditation seal to community foundations that meet comprehensive standards of accountability, excellence and best practices. Foundations that receive the Seal of Accreditation have “demonstrated their commitment to the success and well-being of every cause and person they support and are willing and able to stand by every grant they have made.”

The United States’ first community foundation was established in 1914, spurred by an idea from banker and lawyer Frederick H. Goff to pool charitable resources into one fund with the singular purpose of improving the city of Cleveland. The Cleveland Foundation focused on local community projects such as developing parks and building schools. It provided a way for donors at all levels to participate in local philanthropy and appreciate the results of their contributions.

This “community chest” model of philanthropy grew in popularity, and today, community foundations operate across more than 1,900 communities worldwide, with nearly half located in the United States. In the United States, the largest community foundation is the Silicon Valley Community Foundation, with $13.5 billion as of 2021. The model has grown internationally across Europe, Asia, Africa and North America. For example, in the United Kingdom, there are more than 46 community foundations. In Canada, The Vancouver Foundation is the largest community foundation, managing over 2,000 endowment funds and granting over $100 million annually.

The range of programs and grantmaking offered by community foundations reflects the needs of the communities served. Recently, community foundations have played an instrumental role in funding community-level initiatives related to the COVID-19 pandemic, public health and safety and social justice. Community foundations are also uniquely positioned to lead and support immediate disaster relief and long-term disaster recovery in their surrounding areas as they support local organizations that are on the frontlines of serving communities.

Contributor: Maha Tazi