Community Foundations

Community foundations are grantmaking public charities that are dedicated to improving the lives of people in a defined local geographic area. They bring together the financial resources of individuals, families, and businesses to support effective nonprofits in their communities. Community foundations vary widely in asset size, ranging from less than $100,000 to more than $1.7 billion.

Community foundations play a key role in identifying and solving community problems. In 2011, they gave an estimated $4.3 billion to a variety of nonprofit activities in fields that included the arts and education, health and human services, the environment, and disaster relief. The Community Foundations National Standards Board confirms operational excellence in six key areas—mission, structure, and governance; resource development; stewardship and accountability; grantmaking and community leadership; donor relations; and communications. Foundations that comply with these standards can display the official National Standards Seal. Right now nearly 500 community foundations have earned the seal.

More than 750 community foundations operate in urban and rural areas in every state in the United States; currently, more than 570 belong to the Council on Foundations. The community foundation model also has taken hold around the world. According to the 2010 Community Foundation Global Status Report, there are 1,680 community foundations in 51 countries. Forty-six percent exist outside of the United States. You can use our Community Foundation Locator to view a list of community foundations in the United States.

Below is everything on our site for community foundations. You can use the filtering options on the right to narrow these results.

With Congress and the media focusing on corporate governance and foundation administration, it is a good time to make sure that all grantmakers have a strong conflict of interest policy in place. Both private foundations and public charities (such as community foundations) should have clear guidelines on financial or other interests that must be disclosed and transactions that must be scrutinized or avoided. The policy should cover both board members and foundation staff.

Directors & Officers liability insurance provides financial protection for a foundation and its directors, officers, employees, and volunteers in the event of a lawsuit.

For boards of directors, trustees and foundation managers, there are few areas of operation that cause more confusion and uncertainty than indemnification and the purchase of directors and officers (D&O) liability insurance. And it is no wonder. Mixing the often impenetrable statutory language of the Internal Revenue Code with the highly refined wording of insurance policies creates fertile ground for confusion. To make matters worse, the rules are not static. State laws change, Treasury regulations are revised and insurance policy language is frequently amended.

A look at some of the legal and non-legal aspects of merging one charitable program or organization with another.

Ray S. Munney, executive director of the Zenith County Community Foundation, had three meetings scheduled Tuesday morning. The first was with the new manager of a local corporation's charitable funds. He'd called in a panic last week to say that he wasn't sure their company scholarship program was operating in compliance with IRS rules. Might the community foundation be interested in taking over the program?

Imagine the following scenarios:

  • A donor advisor has not made a recommendation from a donor advised fund for two years.
  • An agency has requested that your community foundation not make a distribution from an agency endowment until the agency requests a distribution at some point in the future.
  • A fiscal sponsorship project has lost momentum and the funds are sitting unused.

Do you have a policy that guides how your community foundation handles these situations? If not, now is the time to put one in place.

Under the rules applicable to private foundations, directors or trustees and staff members may be reimbursed for reasonable and necessary expenses incurred in connection with the foundation's charitable activities. Such expenditures fall under the heading of administrative costs and will generally count toward the foundation's minimum distribution requirement, or payout.

This document outlines the basics of component funds, field of interest funds, donor advised funds and restrictions around these funds.

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