by David Tandet
Community foundations are tax-exempt public charities.
As the name implies, their goal is to benefit specific regions, and the way they work is that individuals, families, and organizations establish permanent funds. These funds form the economic structure of the foundation. Money is distributed by the foundations through various means, one of which is competitive grantmaking.
While the specific philanthropic goals of the participants may vary, each of them, ultimately, seeks to help a particular community. That’s why the name of a foundation often includes the name of the community it serves.
For example, the Ventura County Community Foundation, located in the city of Camarillo, California, exists for the benefit of Ventura County. The California Community Foundation, started in 1915, is primarily concerned with the welfare of Los Angeles. The fact that it began in 1915 when Los Angeles was already a thriving area helps explain that.
One of the questions often asked is, “Why give to a community foundation? Why not just set up your own?” And the answer is that many do choose to give in that manner.
Often, however, the fact that community foundations have unsurpassed knowledge of the specific needs of the areas they serve makes them a logical choice for helping a certain area.
Community foundations are overseen by volunteer boards of community leaders, and are guided by professionals who have knowledge of, and experience dealing with, the various issues facing the places they serve.
The most established foundations provide ongoing educational programs. These empower local nonprofits in various ways such as providing research assistance, hosting grantwriting workshops, and building strategic alliances among area organizations. They help nonprofit boards. The Ventura County Community Foundation’s Center for Nonprofit Leadership, for example, provides programs that serve over 2,500 participants annually.
Communities need help, more than ever before, helping those who need help.
That is why community foundations are playing a significant role, more than ever before, in helping their communities.
The specific roles of various foundations in communities across America will be further explored in future postings.