Community foundations were first formed in the United
States in 1914. They are tax-exempt public charities, established
by local individuals to meet local needs. Community foundations
strive to build and strengthen communities by making it possible
for a wide range of donors to create permanent charitable funds to
meet critical needs. Community foundations are one of the fastest
growing sectors of philanthropy in the United States today with over
650 community foundations located in almost every region and state
in the United States. These foundations jointly hold assets
valued at more than $31.5 billion. The idea of community foundations
is spreading throughout the world as well, with an estimated 365
now outside the United States and Canada. |
Community foundations, through philanthropy that is focused on
the growth and stewardship of permanent charitable resources, have
become catalysts for improvement in every kind of community, from
urban to rural. They support a wide range of nonprofit organizations
in a variety of areas including social services, arts, education,
environmental projects and health. In addition, community foundations
often evaluate and help coordinate the needs and services in its
community, so that charitable gifts are used effectively to fulfill
a community’s most critical needs. All share a common goal
of serving donors, nonprofit organizations and their communities. |
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Community foundations offer donors many services and
benefits. They work with families, individuals, estate planners,
and attorneys to design gift plans that fit every economic situation
so donors can receive the most benefit from their charitable contributions. Donors
can give to an existing fund or establish a charitable donor advised
or endowment fund by contributing a variety of assets. Community
foundations throughout the United States invest in diverse portfolios
and manage their assets carefully. Investments are generally
managed to provide a stream of income from which donations and annual
grants are made as well as to protect the principal of investments
against inflation. In this way, gifts given through foundations will
continue to grow and earn resources for their communities. |
