Community foundation
Encyclopedia
Community foundations are instruments of civil society
designed to pool donations into a coordinated investment and grant making facility dedicated primarily to the social improvement of a given place. Community foundations are a global phenomenon with 1400 existing around the world of which over 700 are in the United States.
It is a combination of all these basic characteristics what makes true CF, although there are many other types of community organizations that have some of these characteristics.
Families, individuals, businesses, and nonprofit groups establish funds within community foundations into which they can contribute a variety of assets to be used for charitable purposes. The people or organizations that establish the funds can then recommend that grants be distributed, in the name of the fund or anonymously, to qualified nonprofit groups and schools. In the USA the donor receives a charitable deduction in the year that gifts are made into their funds, but not all countries where community foundations currently operate provide such incentives for donors. Increasingly, community foundations are hosting giving circles
as a way to further support giving in their communities.
The assets of community foundations are pooled and invested, with donors typically having a choice of investment products.
The funds established at community foundations can be non-endowed or expendable funds (i.e., the corpus of the fund can be spent in its entirety) or they can be endowed, which limit distributions to the interest earned on the assets and/or the amount granted by the foundation as long as the corpus is not spent. Endowments last in perpetuity due to the corpus never being able to be spent.
. Others soon followed including the California Community Foundation
and the Chicago Community Trust. The first Community Foundation in Canada was established in Winnipeg in 1921. Since the 1980s, a number of private foundations in the United States have created initiatives to develop community foundations in various states. One of the earliest such initiatives was in Michigan and in Indiana the Lilly Endowment
funded a program that has spurred development of community foundations in each of the state's 92 counties. On a smaller scale, the Grand Victoria Foundation supports development of Illinois community foundations and the Kansas Health Foundation operates a similar program in Kansas communities.
website the largest community foundations, with assets over $1,000,000,000 held, were:
In terms of annual giving, seven American community foundations gave more than $100 million in grants over the year according to the last data available on July 18, 2011 . The Greater Kansas City Community Foundation gave out the most grants at $183 million, the Silicon Valley Community Foundation was second in grants made at $154 million, The Community Foundation for Greater Atlanta was third in grants made with $142 million, The California Community Foundation was fourth with $129 million, The New York Community Trust was fifth with $123 million, The Tulsa Community Foundation was sixth with $117 million, and The Chicago Community Trust was seventh with $110 million.
Statistics made available by the Foundation Center
enable also financial comparison of the largest community foundations with the largest corporate and private foundations and illustrate the fact that community foundations in the United States tend to be larger than corporate foundations in both assets and grants given.
Civil society
Civil society is composed of the totality of many voluntary social relationships, civic and social organizations, and institutions that form the basis of a functioning society, as distinct from the force-backed structures of a state , the commercial institutions of the market, and private criminal...
designed to pool donations into a coordinated investment and grant making facility dedicated primarily to the social improvement of a given place. Community foundations are a global phenomenon with 1400 existing around the world of which over 700 are in the United States.
Operation
Community foundations are independent registered philanthropic institutions serving geographically defined territory, typically a city or administrative area (county, region and the like). The six main characteristics of the CFs are:- Act as grant-making foundations – e.g. give grants to support development projects
- Their mission broadly defined (e.g. to improve quality of life in a community)
- Serve geographically defined communities – a city, state, region, district or province
- Are supported by a broad range of private as well as public donors and seek philanthropic contributions primarily from inside the community
- Are governed by multi-sectoral local boards reflecting the community
- Build capital endowment, which is an important element of sustainability
It is a combination of all these basic characteristics what makes true CF, although there are many other types of community organizations that have some of these characteristics.
Families, individuals, businesses, and nonprofit groups establish funds within community foundations into which they can contribute a variety of assets to be used for charitable purposes. The people or organizations that establish the funds can then recommend that grants be distributed, in the name of the fund or anonymously, to qualified nonprofit groups and schools. In the USA the donor receives a charitable deduction in the year that gifts are made into their funds, but not all countries where community foundations currently operate provide such incentives for donors. Increasingly, community foundations are hosting giving circles
Giving Circles
Giving Circles are a form of philanthropy where groups of individuals donate their own money or time to a pooled fund, decide together where to give these away to charity or community projects and, in doing so, seek to increase their awareness of and engagement in the issues covered by the charity...
as a way to further support giving in their communities.
The assets of community foundations are pooled and invested, with donors typically having a choice of investment products.
The funds established at community foundations can be non-endowed or expendable funds (i.e., the corpus of the fund can be spent in its entirety) or they can be endowed, which limit distributions to the interest earned on the assets and/or the amount granted by the foundation as long as the corpus is not spent. Endowments last in perpetuity due to the corpus never being able to be spent.
History of community foundations
The first community foundation was set up in Cleveland in 1914 by Frederick Goff and operates now as the Cleveland FoundationCleveland Foundation
Established in 1914, the Cleveland Foundation was the world's first community foundation. , it is America's second-largest community foundation, with assets of $1.62 billion and annual grants of around $84 million....
. Others soon followed including the California Community Foundation
California Community Foundation
The California Community Foundation is a leading philanthropic organization in the United States, managing approximately $1 billion in assets and granting nearly $100 million to nonprofit organizations in Los Angeles County and causes around the world....
and the Chicago Community Trust. The first Community Foundation in Canada was established in Winnipeg in 1921. Since the 1980s, a number of private foundations in the United States have created initiatives to develop community foundations in various states. One of the earliest such initiatives was in Michigan and in Indiana the Lilly Endowment
Lilly Endowment
Lilly Endowment Inc., headquartered in Indianapolis, Indiana is one of the world's largest private philanthropic foundations and is among the ten largest such endowments in the United States....
funded a program that has spurred development of community foundations in each of the state's 92 counties. On a smaller scale, the Grand Victoria Foundation supports development of Illinois community foundations and the Kansas Health Foundation operates a similar program in Kansas communities.
Canada
- Hamilton Community FoundationHamilton Community FoundationHamilton Community Foundation is a Community Foundation that pools donations and Financial endowments into a coordinated investment and grant-making facility dedicated primarily to the social improvement of Hamilton, Ontario...
- Vancouver FoundationVancouver Foundation]Vancouver Foundation helps people give back to the communities they care about, in a way that is simple, convenient and lasting.Vancouver Foundation is the largest of Canada's 174 community foundations and have been around since 1943. Their focus is on improving our communities—the places where we...
United States
According to the data available on July 18, 2011 on The Foundation CenterFoundation Center
The Foundation Center is a 501 nonprofit organization headquartered in New York City. The Center’s stated mission is "to strengthen the social sector by advancing knowledge about philanthropy in the U.S...
website the largest community foundations, with assets over $1,000,000,000 held, were:
- Tulsa Community FoundationTulsa Community FoundationThe Tulsa Community Foundation is the largest community foundation in the United States. Headquartered in Tulsa, Oklahoma, as of January 2011 it was reported to have approximately four billion dollars in assets, and to have donated more than $580 million to local charities and government...
- $4,412,774,000 - The Cleveland FoundationCleveland FoundationEstablished in 1914, the Cleveland Foundation was the world's first community foundation. , it is America's second-largest community foundation, with assets of $1.62 billion and annual grants of around $84 million....
- $1,888,630,534 - Silicon Valley Community Foundation - $1,749,109,000
- New York Community TrustNew York Community TrustThe New York Community Trust was founded in 1924 to distribute the income from charitable funds established by will to improve the quality of life in New York City. It also offers services to living donors. It is one of the oldest and largest community foundations in the United States, and...
- $1,741,811,259 - Chicago Community Trust - $1,503,434,485
- California Community FoundationCalifornia Community FoundationThe California Community Foundation is a leading philanthropic organization in the United States, managing approximately $1 billion in assets and granting nearly $100 million to nonprofit organizations in Los Angeles County and causes around the world....
- $1,120,523,000 - Greater Kansas City Community Foundation - $1,107,725,820
- Oregon Community FoundationOregon Community FoundationThe Oregon Community Foundation was established in 1973 and its mission is to improve life in Oregon and promote effective philanthropy. The OCF works with individuals, families, businesses and organizations to create charitable funds to support the community causes they care about. Through these...
- $1,040,106,343 - Marin Community Foundation - $1,014,427,025
In terms of annual giving, seven American community foundations gave more than $100 million in grants over the year according to the last data available on July 18, 2011 . The Greater Kansas City Community Foundation gave out the most grants at $183 million, the Silicon Valley Community Foundation was second in grants made at $154 million, The Community Foundation for Greater Atlanta was third in grants made with $142 million, The California Community Foundation was fourth with $129 million, The New York Community Trust was fifth with $123 million, The Tulsa Community Foundation was sixth with $117 million, and The Chicago Community Trust was seventh with $110 million.
Statistics made available by the Foundation Center
Foundation Center
The Foundation Center is a 501 nonprofit organization headquartered in New York City. The Center’s stated mission is "to strengthen the social sector by advancing knowledge about philanthropy in the U.S...
enable also financial comparison of the largest community foundations with the largest corporate and private foundations and illustrate the fact that community foundations in the United States tend to be larger than corporate foundations in both assets and grants given.
United Kingdom
- St Katharine & Shadwell TrustSt Katharine & Shadwell TrustSt Katharine & Shadwell Trust is a Community foundation, raising funds and awarding grants to run and support a wide range of projects in East London...
- Two Ridings Community FoundationTwo Ridings Community FoundationThe Two Ridings Community Foundation is an English charity and community foundation which over the past ten years has made grants totalling over £4.6 million to more than 1500 local projects in York, North Yorkshire, the East Riding of Yorkshire and Hull, and raised more than £2 million which is...
Supporters of community foundations
- Bertelsmann FoundationBertelsmann FoundationThe Bertelsmann Foundation is the largest private operating non-profit foundation in Germany, created in 1977 by Reinhard Mohn. The Bertelsmann Foundation holds 77.4 percent of Bertelsmann AG....
- Charles Stewart Mott FoundationCharles Stewart Mott FoundationThe Charles Stewart Mott Foundation is a charitable foundation founded in 1926 by Charles Stewart Mott of Flint, Michigan. Mott was the leading industrialist in Flint through his association with General Motors....
- Ford FoundationFord FoundationThe Ford Foundation is a private foundation incorporated in Michigan and based in New York City created to fund programs that were chartered in 1936 by Edsel Ford and Henry Ford....
- W.K. Kellogg Foundation
- Lilly EndowmentLilly EndowmentLilly Endowment Inc., headquartered in Indianapolis, Indiana is one of the world's largest private philanthropic foundations and is among the ten largest such endowments in the United States....
- King Baudouin FoundationKing Baudouin FoundationThe King Baudouin Foundation is a public benefit foundation in Brussels, Belgium, established in 1976.Named after Baudouin of Belgium, Belgium's late head of state, its mission is to contribute to improving the living conditions of the population. KBF, both a grantmaking and an operating...
See also
- Occupational safety and healthOccupational safety and healthOccupational safety and health is a cross-disciplinary area concerned with protecting the safety, health and welfare of people engaged in work or employment. The goal of all occupational safety and health programs is to foster a safe work environment...
- Civil societyCivil societyCivil society is composed of the totality of many voluntary social relationships, civic and social organizations, and institutions that form the basis of a functioning society, as distinct from the force-backed structures of a state , the commercial institutions of the market, and private criminal...
- Charities
- FoundationsFoundation (charity)A foundation is a legal categorization of nonprofit organizations that will typically either donate funds and support to other organizations, or provide the source of funding for its own charitable purposes....
- EndowmentsFinancial endowmentA financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
- Non-profit organizationNon-profit organizationNonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...
- Public administrationPublic administrationPublic Administration houses the implementation of government policy and an academic discipline that studies this implementation and that prepares civil servants for this work. As a "field of inquiry with a diverse scope" its "fundamental goal.....
- Social innovationSocial innovationSocial innovation refers to new strategies, concepts, ideas and organizations that meet social needs of all kinds - from working conditions and education to community development and health - and that extend and strengthen civil society....
Publications
- Bernholz. L., K. Fulton, and G. Kasper. (2005). “On the brink of new promise: The future of U.S. community foundations.” Trade report. Funded by Charles S. Mott Foundation and the Ford Foundation.
- Gast, E. (2006). Community foundation handbook: What you need to know. New York: Council on Foundations.
- Hall, P.D. (1989). “The community foundation in America, 1914-1987.” In Richard Magat, ed., Philanthropic Giving. New York: Oxford University Press.
- Hammack, D. (1989). “Community foundations: The delicate question of purpose,” in Magat, R., ed. An agile servant: Community leadership by community foundations. New York: The Foundation Center.
- Magat, R., ed. (1989). An agile servant: Community leadership by community foundations. New York: The Foundation Center.