What is a community foundation?

Community foundations exist as a unique form of a nonprofit organization because they help donors find the flexibility and fit for their philanthropic efforts.  Community foundations originated in Cleveland, OH in 1914, and the idea quickly spread to other states.  Unlike large foundations, community foundations are deeply rooted in the context of their own communities, and they are able to provide a great deal of information and expertise for donors who are seeking to invest in a nonprofit organization.  Additionally, they provide a more personalized giving experience precisely because of their close relationships with other nonprofits in the community.

Unlike most nonprofits that take donations at a specific point in time for a specific cause, community foundations enable donors to give money that can be used at a critical time for important projects.  Donors trust the expertise of the leaders of the community foundation so that they can feel confident that their donation is being used to the best of their ability.  Additionally, community foundations accept unique forms of donations, including appreciated stock, real estate, collectibles, and other types of property.  Donors can give in a traditional way by providing unrestricted cash for various types of funds, including scholarships, donor advised funds, and annual funds.

In addition to accepting a wide range of donations, community foundations serve as a clearinghouse for donations so that donors can be sure that their money has the greatest possible impact on the community.  Community foundations coordinate grants, match funds, and provide other resources for donors to ensure that donors feel confident about their investments.

Source: Community Foundations and Philanthropy