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 2017, they gave an estimated $5.48 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. Currently, over 500 community foundations have earned the seal.

More than 900 community foundations operate in urban and rural areas in every state in the United States; currently, approximately 350 are members of the Council on Foundations. The community foundation model also has taken hold around the world. Community foundations have participated in the growth of international giving by U.S. foundations in recent years, with international giving by community foundations more than tripling, from $103 million in 2011 to $315 million in 2015, and community foundations' share of overall international giving by U.S. foundations more than doubling, from 1.4 percent in 2011 to 3.4 percent in 2015.

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. We highly recommend that you use the navigation or our search feature to find what you're looking for on our site. Please also visit cof.org/community-foundations for curated community foundation content. 

FAQ: End of Year 2024

Legal Compliance Guidance
Individual Retirement Accounts (IRA) Gifts and Qualified Charitable Distributions (QCDs) May a donor make a QCD from an IRA to their donor-advised fund (DAF) or someone else’s DAF? What happens if a donor chooses to transfer money from their IRA into a DAF? Do we have to tell them they have…

FAQ: AAER v. Fearless Fund Settlement

Legal Compliance Guidance
What is Section 1981? Does the outcome of this case set a new standard for grants that are race-based or race-conscious? If so, why? How will this settlement impact a foundation’s ongoing commitment to DEI within their grantmaking? Will the settlement impact foundations collection of…

Values-Aligned Philanthropy: Foundations Resisting Hate and Extremism

Publication
In late 2020, the Council on Foundations (the Council) launched the Values-Aligned Philanthropy project to continue to build on their previous efforts within the philanthropic sector to respond to growing concern about the issue of funding hate and extremism. The Council took this step recognizing…

Sample Documents for Scholarship Funds

Sample Document
Community foundations that award scholarships and other grants to individuals from funds with donor involvement should be sure these funds comply with the requirements of the Pension Protection Act of 2006. The PPA prohibits grants to individuals from funds that meet the fairly broad definition of…

Disaster Relief: A Practical Guide for Foundations and Corporations

Publication
Moved by widely publicized human suffering and increased disaster aid requests, foundations and corporations are becoming more active in the disaster relief field. Grantmakers have a distinct role to play in disasters because of their ongoing relations with grantees, long-term perspective,…

FAQ: Global Grantmaking

Legal Compliance Guidance, Fundamentals
What are the legal requirements for private foundations wishing to make cross-border grants? What is equivalency determination? What is expenditure responsibility? How do I decide whether to use equivalency determination or expenditure responsibility? What are the legal requirements…

FAQ: Scholarships

Legal Compliance Guidance, Fundamentals
What are the advantages, disadvantages, and likely costs of scholarship programs? What do the private foundation rules require, and how should community foundations apply the rules? What rules or procedures govern community foundation scholarship programs? Does a community foundation need to…

Conflicts of Interest - Key Issues for Foundations

Legal Compliance Guidance
With Congress and the media focusing on corporate governance and foundation administration, now is the 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…

Recommended Best Practices in Managing Foundation Investments

Fundamentals
The Council's Board of Directors released this guidance memorandum in March 2010 and strongly recommends that when reviewing and approving foundation investment policies and procedures practices, all foundations—private and public—consider these best practices in foundation investment management.

FAQ: Donor-Advised Fund

Legal Compliance Guidance, Fundamentals
The Pension Protection Act of 2006 includes the first comprehensive regulation of donor-advised funds. These requirements generally took effect at the beginning of the tax year following enactment of the Act, for charities that hold assets in such funds. However, a provision barring the payment…

Networking for Success: Building Networks Is Essential to Investment in Social Impact Bonds

Toolkit
Working in collaboration with the Center for American Progress, the Council co-hosted conversations among foundations, community development financial institutions, and investment firms about social impact bonds and Pay for Success. Out of these conversations, two issue briefs were created: “…

Legal Basics: What Every Foundation Leader Should Know

Legal Compliance Guidance
A guide to legal basics for foundation leaders covering: tax on investment income, self-dealing, payout requirements, excess business holdings, jeopardy investment rules, taxable expenditures, intermediate sanctions, reasonable compensation, and grants to non-charities. 

Board Compensation

Fundamentals
Introduction Should your foundation board members be compensated for service, or should they serve in a voluntary capacity? Whether you are considering this issue for the first time, or whether it’s a question that has arisen before, compensation has become more than an internal management…

Community Foundation Field Guide to Impact Investing

External Resource
The interactive resource guides community foundations through the three main stages of the impact investing journey: Learn, Design, and Activate. At each stage, you can click on various topics to learn more about what the topic entails and how other community foundations have approached place-based…

Planning for CEO Succession

Fundamentals
Many foundations may be uncertain about what’s involved when it comes to succession planning. Some wonder why they should worry about the future at all when they have so much work to do in managing their grantmaking, community leadership and development, and administrative duties. Succession…

Engaging Donor Advised Funds in Impact Investing

Toolkit
A Toolkit for Community Foundations “Impact investing” is the practice of investing for social and environmental impact while generating financial return. For community foundations, impact investing represents a new, complementary tool for achieving community change. Community foundations are…
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