WHAT IS A COMMUNITY FOUNDATION
A community foundation is a collection of distinct endowed funds established by individuals, organizations, and corporations to enhance the quality of life in a defined geographic area. These funds are pooled and managed by an appointed Board of Directors. The income from these funds is distributed as grants to carefully selected nonprofit organizations. A community foundation strives to meet the most pressing current and future needs of the region it serves.

The first community foundation was established in 1914 by a Cleveland banker. Today, there are nearly 700 community foundations nationwide, with aggregate assets approaching $32 billion. Community foundations are the fastest growing form of philanthropy in America. Donors appreciate a community foundation's ability to respond to changing societal needs. For example, community foundations were among the first to respond to the devastation of AIDS, the crisis in health care and the call for educational reform.

Community foundations are designated "public charities" rather than "private foundations" by the Internal Revenue Service because they raise a significant portion of their resources from a broad cross-section of the public each year.

For further information on the community foundation field, please visit the Council on Foundations website at www.cof.org.

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