What are community foundations?

Community foundations are charities located across 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 have been active in the UK since the 1980s and a rapidly growing network of approximately 60 foundations is now established across the country. About 90% of the UK population has access to a community foundation.

WHAT MAKES COMMUNITY FOUNDATIONS DIFFERENT?

	Community foundations understand their local communities. They identify local needs and mobilise local resources
	Community foundations can meet all areas of community need – arts and culture, education, environment, health, community development, children and young people, older people
	Community foundations support cutting edge programmes, create new organisations and meet new and emerging needs
	Each community foundation is unique – rural, urban, inner-city or serving isolated communities – and develops its own priorities
	Thoughtful grant-making ensures donors’ money goes where it is needed and has the most value. Community foundations work with donors, large and small, to make sure their gift makes the most difference
	Community foundations’ expertise in local grant-making means many different kinds of donors use them to manage their funds – individuals, companies, charitable trusts and government agencies
	Community foundations specialise in personalised giving – donors can specify how, where and over what period of time their gift is spent. Donors can make gifts of cash, shares, trusts, bequests or property
	Community foundations offer simple, professional tax-effective ways to give
	As well as managing funds, community foundations build endowment – investing for the future. They pool donations in multi-purpose funds and use the income to make grants to local organisations
	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.
	Each community foundation is governed by a board of trustees from a wide variety of backgrounds with a broad range of skills and experiences 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.
	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 then they have grown rapidly and now provide services to voluntary groups, donors and local communities throughout Scotland, Wales, Northern Ireland and most of England. By March 2006, UK community foundations collectively held over £140 million in endowment (funds for the future) and in the year 2005-06 made grants of over £70 million.