General questions

1. What is Community Foundation Network (CFN)?
2. What are community foundations?
3. Where did community foundations start?
4. Where do community foundations now operate?
5. How many community foundations are there in the UK?
6. How do community foundations differ from other charities?
7. What funds do UK community foundations hold?
8. How do community foundations finance themselves?
9. Are there any Government links to community foundations?
10. How much do community foundations distribute in grants?

Looking for a grant?

11. How can I apply for a grant from a community foundation?
12. What do community foundations fund?
13. How is grant-making managed?
14. Do all community foundations offer similar programmes?

Questions from donors

15. What are the benefits of giving through a community foundation?
16. Why should I give through a community foundation, rather than direct to a charity?
17. For a company, what are the benefits of giving through a community foundation?
18. What kind of donations can be made through community foundations?
19. I can't afford a big donation but I still want to support my local community. Can I still give through a community foundation?
20. How can I give tax-effectively through community foundations?
21. Is establishing a fund through a community foundation a good alternative to setting up my own trust?
22. As a professional adviser, why should I advise my clients to give through a community foundation?

General questions

1. What is Community Foundation Network (CFN)?

   Established in 1991, Community Foundation Network is the national network linking, promoting and supporting nearly 60 community foundations across England, Northern Ireland, Scotland and Wales. Read more >>

2. What are community foundations?

   Community foundations are charities throughout the UK dedicated to strengthening local communities, creating opportunities and tackling issues of disadvantage and exclusion. Community foundations target grants that make a genuine difference to the lives of local people. They manage funds donated by individuals and organisations, building endowment and acting as the vital link between donors and local needs, connecting people with causes, and enabling clients to achieve far more than they could ever by themselves.
   
   Community foundations allow donors to specify how, where and over what period of time their money is spent. Gifts of cash, shares, trusts, bequests and property are pooled in multipurpose endowment funds, creating a capital sum whose earnings address donors' specific interests.� Read more >>

3. Where did community foundations start?

   The first community foundation was established in Cleveland, Ohio, USA in 1914. Since then, at least 700 have been established in the United States alone�where�they�serve tens of thousands of donors�and�administer more than $31 billion in charitable funds.

4. Where do community foundations now operate?

   At least 51 countries now have community foundations, including Australia, Canada, Germany, Italy, Poland, Russia, Mexico and South Africa, as well as the USA and the UK. There are at least 1,440 community foundations worldwide. Read more >>

5. How many community foundations are there in the UK?

   The first UK community foundations appeared in the late 1970s. By 2010 there were 58, of which 45 are quality accredited. Over 98% of the UK population has access to one. Find your local community foundation >>

6. How do community foundations differ from other charities?

   Community foundations are unique mechanisms for giving to charity. Their flexibility and personalised services allow donors to specify how, where and over what time period their money is spent. Community foundations offer an opportunity to channel help towards meeting local needs and allow donors to see tangible results in their local community.

7. What funds do UK community foundations hold?

   By March 2009, community foundations held� over �151 million in committed endowed giving. Community foundations offer a variety of funds: a general fund for their area, plus several others funds for specific purposes, such as women's funds, community arts funds or health funds.

8. How do community foundations finance themselves?

   All community foundations aim to become self-financing.
   
   Community foundations charge major donors for the grant-making done on their behalf. Donors agree that this costs less than the time and money that doing this work themselves would involve. Many foundations have members who pay an annual subscription towards running costs and/or do local fundraising.
   
   Some foundations have built up an administrative endowment to produce a stream of income, usually from donors who want to fund the development of philanthropy itself. In the initial stages of development, foundations often receive help from other charitable trusts that support the community foundation model and are keen to see a revival of this kind of philanthropy.

9. Are there any Government links to community foundations?

   CFN is a strategic partner of the Office for Civil Society, taking an active role in its programme to expand charitable giving.

   Many community foundations in England are local funders for Grassroots Grants, a �130 million government programme running from 2008 to 2011. It consists of a �130 million endowment challenge (with the government doubling or trebling donations) and an �80 million small grants fund. The endowment challenge creates a lasting pot of funding.

   Many community foundations have previously managed government funds such as Local Network Fund, Neighbourhood Renewal Unit community chests, or funds from the European Social Fund.
   
   Several MPs and ex-MPs, including some senior politicians, are involved in their local community foundations. For example, Tony Blair is the Vice President of County Durham Foundation and has set up his own foundation, the Tony Blair Sports Foundation, managed by the County Durham Foundation

10. How much do community foundations distribute in grants?

    Up�to��70 million a year. Many community foundations distribute over �1 million in grants a year. Over �322 million has been distributed in grants by community foundations in the last five years. Combined, community foundations are one of the largest non-government grant-making bodies in the UK.

Looking for a grant?

11. How can I apply for a grant from a community foundation?

    Contact your local community foundation. CFN's London office does not make grants or handle grant applications. All grant-making is done by local community foundations. Read more�>>.

12. What do community foundations fund?

     Local community groups and voluntary organisations. Case studies

13. How is grant-making managed?

     A board of trustees, drawn from all sectors of the local community, governs community foundations' grant-making. Community foundations also draw on expert advice from the community by involving volunteers in grants committees. 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. Read more ...

14. Do all community foundations offer similar programmes?

     Community foundations grant-making programmes vary according to donors wishes and the needs of the communities they serve. Read more ...

Questions from donors

15. What are the benefits of giving through a community foundation?

    Giving through a community foundation means you are giving locally and making a long-lasting impact. It is a convenient, cost-effective, simple and flexible form of giving. Community foundations are accountable for the grants they make and can advise you on tax-effective ways of giving.

16. Why should I give through a community foundation, rather than direct to a charity?

    As a potential donor, picking your way round the charitable world can be a difficult task. Who, what, where or how do you wish to help? This is where community foundations help, with their in-depth knowledge of local communities.

17. For a company, what are the benefits of giving through a community foundation?

    �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.

18. What kind of donations can be made through community foundations?

    �Community foundations work with a wide variety of donors - individuals, families, businesses, charitable trusts and statutory bodies - with a broad range of means.
    
    Donations vary widely in size and form, including gifts of cash, trusts, bequests, shares or property. Donors can direct their funds to a favourite cause, organisation or specific geographical area. Donations can be pooled into themed funds to address a particular issue. A donation to a general endowment can be used more flexibly to make grants for a broad range of local activities.

19. I can't afford a big donation but I still want to support my local community. Can I still give through a community foundation?

     All donations whether large or small, repeat or one-off are welcome. Small donations are pooled in general funds. Advice on tax effective giving is also available. Some foundation run Acorn funds when you give a small amount each month to build up to your own fund.

20. How can I give tax-effectively through community foundations?

     The main ways are by using Gift Aid, giving shares or property, leaving a legacy or by joining a payroll giving scheme. You can get advice on tax effective giving appropriate to your particular circumstances from your local community foundation or from your own financial adviser.

21. Is establishing a fund through a community foundation a good alternative to setting up my own trust?

    Many donors have found establishing a fund at a community foundation a straightforward and convenient alternative to setting up their own charitable trust.
    

    	Setting up a charitable trust	Establishing a fund through a community foundation
    Set-up procedure and costs	must register as a charity and apply to the Charity Commission	simple agreement; no start-up fees or costs
    Investment, audit, accounting and tax	must fulfil financial and administrative requirements or contract or hire staff	community foundation handles all financial and administrative management, sorts out audit and reports to Charity Commission
    Grant management	must research and check activities and status of all recipient organisations; has ultimate say in all grant decisions	community foundation verifies activities and status of all potential grantees; donors have access to grant-making know-how and services;donors can be as involved as much or as little as they want in the grant-making process; donors make recommendations to community foundation's Board on grants to be made;
    Privacy	required to keep public records	anonymity of donor can be maintained if wanted; if the donor wishes, the community foundation can serve as a buffer between donor and grant-seekers
    Profile	responsible for own profile	community foundation can raise donor's profile in the community by making grants in donors' name and featuring the donor in publications
    Networking	must find own networks and information sources	community foundation networks like-minded donors; connects donors to variety of groups and issues in the community

    
    

22. As a professional adviser, why should I advise my clients to give through a community foundation?

    �Community foundations are the ideal product for financial advisers, solicitors and accountants with clients wishing to give. Read more >>