Community Foundation
A community foundation is a public charity that manages donor funds and makes grants to nonprofits within a specific geographic area. They pool resources to strengthen local communities.
A community foundation is a tax-exempt public charity that pools charitable gifts from individuals, families, and businesses to make grants that benefit a specific geographic area. They serve as a philanthropic hub for their region, managing donor-advised funds, scholarship funds, and field-of-interest funds.
Why It Matters for Fundraising
Community foundations are significant grantmakers in most regions and an important funding source for local nonprofits. They also manage donor-advised funds that distribute grants to nonprofits — when a donor gives through their community foundation's DAF, your nonprofit receives the grant. Building relationships with your local community foundation can unlock multiple funding streams.
How They Work
Community foundations accept gifts of any size, invest the pooled assets for growth, and distribute grants according to donor wishes and community needs. They often provide technical assistance, capacity building, and convening services for local nonprofits beyond just financial support.