Community foundations build and strengthen communities by making it possible for a wide range of donors to create permanent, named component funds to meet critical needs. Community foundations, through philanthropy that is visionary, diverse and inclusive, have become catalysts for improvement within urban centers and in rural settings. There are nearly 700 community foundations in the United States. They make up one of the fastest growing sectors of philanthropy in the United States today. These community foundations hold approximately $39.4 billion in assets and are located throughout the country. In 2004, community foundations gave more than $3 billion to a wide variety of nonprofit activities, including arts, education, health and human services, and environmental.

Donors are offered many services and benefits from community foundations. They routinely work with families, individuals, attorneys and estate and financial planners to design gift plans that fit every economic situation, ensuring that donors receive the most benefit from their charitable contributions and that their philanthropic dollars are used to the fullest extent.

Community foundations received an estimated $4.2 billion in gifts in 2004. They accept gifts of various sizes and types. Nearly every type of gift—including real estate, closely held stock and artwork—can be contributed to a community foundation. Gifts are made from bequests and by living donors through various types of funds and deferred giving vehicles. These funds are pooled and invested in diverse portfolios as sound investment management is a major aspect of community foundations’ work.

All share the common goal of serving donors, nonprofit organizations and the community as a whole. In addition, one of a community foundation’s special functions is to evaluate and help coordinate the needs and services in its communities, so that charitable gifts are used effectively to fulfill a community’s most critical needs.

For more information on community foundations, visit the Council on Foundations.