Ever wondered what exactly a community foundation does – and how your nonprofit might be able to receive help from one? If so, read on to discover what a community foundation does, how they help nonprofits, and how to find the right community foundation for your organization. Plus, we’ll share tips to help you receive…
Ever wondered what exactly a community foundation does – and how your nonprofit might be able to receive help from one? If so, read on to discover what a community foundation does, how they help nonprofits, and how to find the right community foundation for your organization. Plus, we’ll share tips to help you receive a community foundation grant to support your important work.
There are over 900 community foundations in the U.S. They represent both rural and urban areas in all 50 states.
But…what do they do for the communities they support? If you’ve been searching for a community foundation definition, you’ve come to the right place!
In this article, we’ll share everything you need to know about community foundations.
Community foundations are tax-exempt nonprofits that disperse funds to support specific projects and organizations, typically benefiting a certain community or city. Their funding comes from individual donors.
Thus, community foundations are unique. They give grants the same way other foundations do, but they grant funds provided by donors who are typically in the community.
Types of donations community foundations accept include:
For example, check out how the Jefferson Community Foundation uses Donorbox to easily raise funds for their granting program.
Yes, community foundations provide grants and other support to help nonprofits with mission-based work.
In addition to grants that can be given for specific projects or more general support, these foundations can provide:
Additionally, some of these organizations manage donor-advised funds, which offer tax benefits to donors in their community.
Now, let’s look briefly at how they work.
Individual donors in the community and corporations provide funding to community foundations in their area. They do this either through direct, unrestricted donations or by using a foundation’s donor-advised fund.
We love how the Greater Oxford Community Foundation makes it easy for donors to give. They provide a dropdown for donors to specify any funding areas they’d prefer to support.
Similar to other foundations, nonprofits apply for support through grant proposals or applications. Sometimes these applications focus on specific projects, while other times they ask for general support of an organization’s ongoing initiatives.
Managers and stakeholders in the community foundation review grant proposals from nonprofits. They choose projects and initiatives to support that:
When a nonprofit receives a grant from a community foundation, they are responsible for ensuring the funding is used appropriately. The funding must support the project they outlined in the grant application.
Typically, community foundations will require nonprofits to submit a report at the end of the grant activities period. This report, similar to an annual or impact report, will demonstrate how the nonprofit used the funds to make a difference in the community.
Maintaining this relationship with proper reporting and recognition is crucial so nonprofits can receive additional funding from their local foundation in the future.
Learn more about the best way to communicate with grant-makers here.
To find the right community foundation for your nonprofit, you’ll need to consider the following:
First, you’ll need to find a foundation that serves the same location your nonprofit serves. You wouldn’t apply for funding from an organization in Greater Atlanta to support your project in Chicago!
Depending on where you live, your options may be limited. The more specific you can get to your area, the higher your chances are of receiving support.
Beyond location, you need to ensure that your local community foundation is interested in the type of project or initiative you’d like to propose.
To do this, you can:
While it may feel bold to outright ask foundation managers what they’re interested in supporting, it’s often preferred! Knowing ahead of time that a foundation is interested in your work makes your time crafting your proposal worthwhile. Just remember to thank any foundation managers after a meeting, regardless of their stance.
The right foundation for your organization will have the capacity to support your project. This seems obvious, but aligning the scope of your project with the capacity of the community foundation is a crucial step. Can they provide the funding you need? Can you scale back or expand your project to fit their expectations?
Do you have any existing connections with that foundation? You can be connected through board members, major donors, corporate partners, and volunteers.
Having existing connections can help you understand more about what the community foundation is interested in – and can make it more likely your organization will receive funding.
Here are some tips to make your grant proposal stand out.
What makes your location unique? How does your organization approach your community in an innovative way?
By focusing on place, you’re showing that you understand the unique challenges and opportunities available to your community.
Pro Tip: If your organization has been serving a specific location for many years, detailing this history will showcase your dedication to the community. Storytelling is a great tool to accomplish this!
Just because someone is familiar with your community doesn’t mean they fully understand the problem your organization seeks to solve.
Beyond just explaining the problem, showcase how it affects the people in the areas you serve. Community foundations strive to make a difference with a variety of issues, so they may not be fully educated about one specific issue or problem.
Beyond detailing the problem, offering a practical look at your suggested solution will make your grant proposal more attractive. Highlight the steps you plan to take to achieve your goals and demonstrate how each step is achievable.
Community foundations don’t need to be mysterious. These are nonprofits who strive to create a better world, one community at a time. Whether their funding comes from online donations, corporations, or gifts of stock or crypto, these foundations support nonprofits doing important work in their area of focus.
Donorbox helps nonprofits, churches, universities, and more raise the funds they need to make an impact. With state-of-the-art donation forms, in-person fundraising with the Donorbox Live™ Kiosk app, event ticketing, crowdfunding, and more, organizations have raised a collective $2 billion – and counting. Plus, powerful behind-the-scenes tools like Donorbox CRM make building better donor relationships a breeze. Check out the rest of our features and sign up today to start fundraising in under fifteen minutes!
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Lindsey spent years wearing many hats in the nonprofit world. Whether she was helping arts nonprofits with their messaging and content, planning a fundraising gala, writing an NEA grant proposal, or running a membership program with over 400 members, she learned how to navigate – and appreciate! – the fast-paced world of fundraising. Now, she loves sharing those hard-earned lessons with the Donorbox community.
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Lindsey Baker Bower