A Community Foundation - A Charitable Choice

Since 1914, Community Foundations have worked to change lives, improve conditions, and develop the communities they serve.  Frederick Harris Goff created the first Community Foundation in Cleveland, Ohio.  His vision was to provide an avenue for local citizens to contribute funds to meet changing community needs.  From this humble beginning, there are now over 700 Community Foundations throughout the United States.  Even though the size of Community Foundations may vary from a few thousand dollars to almost $2 billion in assets, all have missions that are relatively similar; to improve the quality of life in the communities they serve. 

Community Foundations are diverse.  They reflect the geography, local needs, traditions, strengths, and resources within the community.  Even though the Bay Area Community Foundation, Midland Area Community Foundation and Saginaw Community Foundation differ in ways such as the number of staff, the size of their governing boards, and their asset size, their principle purpose is similar.  The goal is to improve the quality of life, build local resources, and strive to identify and meet the needs of the communities they serve.

Community Foundations are often viewed as the community saving account.  They work within a specific geographic area to build permanent endowment funds.  The endowment funds are built through assets contributed by donors and held for perpetuity.  Community Foundations offer donors many choices for their charitable giving with the assurance their gift will be invested and a portion used wisely each year for the betterment of the community. 

Community Foundations want to work with a donor’s professional advisors. There are times when donors are seeking information on how best to place their assets during and after their lifetime.  A fund established at a Community Foundation can assist individuals or families to create their personal giving legacy.  Funds can be tailored to a donor’s charitable and financial interests.  Local Community Foundations help donors support the causes they care about most.  If a donor does not wish to establish his/her own fund, there are many other funds designed to support a specific area of interest. Contributions made during a donor’s lifetime receive favorable tax deductions.   Donations through an estate an retirement plan also experience significant tax advantages.

Community Foundations offer a variety of fund types to meet donor’s needs. 

Donor Advised Funds. Donors work with our professional program staff, identifying ways to use dollars from the Donor Advised Fund. Donor recommendations are submitted to the Board of Trustees for approval; the Foundation then distributes grant dollars.

Field of Interest Funds. Donors can target their gifts to address needs in an important area of community life. Donors identify their personal interest area when making their gift; the Board of Trustees awards grants to community organizations and programs that are making a difference in the area the donor selects.

Unrestricted Funds. Gifts can address ever-changing community needs, including future needs that often cannot be anticipated at the time a gift is made. The flexibility of an unrestricted gift enables your community foundation's program experts to respond to the community's most pressing needs, today and tomorrow.

Scholarships. Donors can invest their gift in our community's future by creating a scholarship fund. Donors determine the criteria students must meet to receive the Scholarship they establish.

Designated Funds. Donors can direct their gift to a specific nonprofit organization or purpose. Nonprofit organizations can use a Designated Fund through the community foundation to build their endowment and enhance their ability to accept large and complex gifts.

Please contact your local Community Foundation if you or your clients would like more information about making a contribution or establishing an endowment fund.