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Community foundations are charitable trusts that promote and support
local voluntary and community activity. They have two main roles:
managing funds and building endowments for donors as well as making
grants to charities, linking local donors with local needs. For donors
wishing to target their giving and help build local communities,
community foundations offer a gateway to giving:
PLATFORMS FOR BUILDING COMMUNITIES
A fast growing style of giving, community foundations offer a simple,
professional tax-effective solution for donors wishing to make a
difference in their local community.
Gifts of cash, shares, trusts, bequests or property are pooled in
multipurpose endowment funds, creating a capital sum whose earnings
address donors' specific interests. Community foundations allow donors
to specify how, where and over what period of time their money is
spent.
With their in-depth and up-to-date knowledge of local communities,
foundation staff can identify and assist donors meet a broad range
of changing needs. From health and education to young people and
the elderly, a thoughtful and intelligent grant-making programme
ensures donors’ money goes where it is needed most and will
have the most lasting value.
Permanent, independent and flexible sources of funding, community
foundations tackle the needs of today while addressing the needs
of future generations. Projects
with lasting value demonstrate community
foundations’ impact on their communities.
GATEWAYS TO GIVING
Community foundations allow donors to target their giving to the
areas or causes they feel most strongly about. Most donations are
pooled in an endowment fund held by individual community foundations
so donors know they are contributing to a wide variety of causes
in
a specific
geographical
area. Alternatively
themed funds address issues such as community safety, children or
the elderly.
Some larger donors may choose to have their own separate tailor-made
named fund, which is set up quickly and easily and offers all the
benefits of a private charitable trust without the burdens of bureaucracy
and management. They can focus their giving even further by specifying
particular groups, issues, towns or districts. Foundation staff undertake
all day-to-day administration on behalf of the donor.
Community foundation donors can be individuals or families, companies,
other charitable trusts or public-funded bodies. If you are interested
in becoming a donor through your local community foundation, for
prospective donors outlines options for giving. Local
giving illustrates
the flexible ways donors can support their local community.
Community foundations make corporate giving hassle-free and straightforward.
They are ideally placed to help companies wishing to demonstrate
commitment and involvement in their local community. Companies can
outsource their in-house Corporate Social Responsibility function
to their local community foundation and benefit from the efficiency,
impact on staff motivation and recognition of giving locally.
Community foundations are the ideal product for financial advisers,
solicitors and accountants with clients wishing to give. Many are
reluctant to recommend specific charities to clients for reasons
of impartiality, but as community foundations support a wide variety
of voluntary and community activity they can be recommended with
a clear professional conscience. For
professional advisers provides
more information and case studies.
FIRM FOUNDATIONS
Each community foundation is governed by a board of trustees from
a wide variety of backgrounds with a broad range of skills and experience
who guarantee effective delivery of grants and manage and apply financial
resources in an ethical, business like and constructive manner. Comprehensive
grant-making policies and procedures, combined with extensive knowledge
and understanding of the local community and its needs, ensure grants
are targeted responsibly and carefully.
AN INTERNATIONAL MOVEMENT
The first community foundation was established in Cleveland, Ohio,
USA in 1914. Since then, over 650 have been established in the United
States. There are now more than 1,100 community foundations in over
35 countries. For more information, visit the websites on the wider
community foundation movement in links.
The UK community foundation movement emerged in the 1980s. The
impetus came from Charities Aid Foundation and central government
when they supported the movement’s development by funding
six community foundations for administration and start-up costs.
Since this fillip they have grown rapidly and now provide an effective
network of support to voluntary groups, donors and local communities
throughout Scotland, Wales, Northern Ireland and most of England.
By March 2002, UK community foundations collectively held over £90
million in permanent endowment and in the year 2001-02 made grants
of over £30 million a year.
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