There are more than 900 community foundations across every state in the U.S., yet some confusion remains about the nature of these organizations and their work.
A community foundation is a public charity that typically focuses on supporting a geographic area, primarily by facilitating and pooling donations to address local needs and support local nonprofits. Community foundations receive support from a wide array of donors, including individuals and families, businesses, other charities and foundations, and sometimes government entities. What differentiates a community foundation from other nonprofits is the variety of grantmaking vehicles they employ and that donors may engage with, such as donor-advised funds, endowments, scholarships, field-of-interest funds, giving circles, impact investing, and more. These offerings allow donors to creatively partner with a community foundation to craft personalized strategies for impact in ways not often possible through commercial donor-advised funds or even direct donations to nonprofits.
For example, through a community foundation, a donor may establish a scholarship fund benefiting students graduating from a particular high school or pursuing a specific field of study. The donor may then be able to sit on a committee that reviews applications for the scholarship and can endow the program in perpetuity. Additionally, these foundations almost always employ staff members with rich knowledge of local causes, organizations, and initiatives, and they can provide valuable guidance to donors.
Community foundations can be an excellent option for donors interested in creating their own types of programs or endowments or focusing their giving on a specific geographic area or population. There are multiple community foundations in the Atlanta and Charlotte areas, including the Cobb Community Foundation (a SignatureFD client), the Community Foundation for Greater Atlanta, and the Foundation for the Carolinas.
Community foundations can offer a unique and flexible way for donors to make a lasting impact in their communities. By leveraging the expertise and resources of these foundations, individuals and organizations can create tailored giving strategies that address local needs and support the causes that are most meaningful to them. Whether you’re interested in establishing a scholarship, creating an endowment, or engaging in strategic philanthropy, partnering with a community foundation may help you on your journey toward your Net Worthwhile®.
Interested in learning how you can partner with a community foundation near you? Talk to your SignatureFD advisor or contact Elizabeth Burdette, philanthropic advisor, at elizabeth.burdette@signaturefd.com.
