What is a community foundation?
A community foundation is a grantmaking public charity dedicated to improving the lives of people in a specific local area. It brings together financial resources from individuals, families, and businesses to support effective nonprofits within the community. These foundations play a key role in identifying and addressing both immediate and long-term community needs. They can support a range of activities, including arts, education, health, human services, the environment, and more.
All community foundations:
- Support broad-based charitable interests and benefit residents of a defined geographic area.
- Bring together the financial resources of individuals, families, and businesses to support local nonprofits.
- Partner, often across sectors, to facilitate positive change.
- Are classified as public charities by the tax code and must pass the public support test, which requires that donations come from a broad donor base.
