Community Foundations

Community foundations are grantmaking public charities dedicated to improving the lives of people in a defined local geographic area. They pool the financial resources of individuals, families, and businesses to support nonprofit organizations in their communities. Community foundations vary widely in asset size. In aggregate, U.S.-based community foundations held an estimated $158 billion in assets in 2023. There are about 900 community foundations in the United States and over 200 in Canada. 

Another approach is to secure local business support before reaching out to community foundations. Having local business support can strengthen your credibility, demonstrate local buy-in, and help refine your proposal writing before applying for foundation funding. However, this is not a requirement. If you do adopt this approach, remember that local business support doesn’t have to be large amounts of funding. Endorsements, in-kind support, or partner commitments can help with credibility.

It remains a strategic move for nonprofits to approach their local or regional community foundation before exploring larger private and independent foundations. Community foundations most often focus on local/community‐based projects, provide smaller or flexible funds, and engaging them can diversify your funding base and show local credibility.

Because your percentage of revenue from community foundations is below 10%, you can set a goal to raise your percentage of revenue from community foundations to this level. 

Grantmaking by community foundations rose 5.6% from 2018 to 2019, according to Giving USA. Consider setting an objective for your grants portfolio that increases the funds you currently request from your community foundation by around 5%.

Community foundations play a key role in identifying and addressing community problems. If you are wrestling with a significant community problem—whether it is well known or not—consider applying to your community foundation.

Eighty-two percent of the respondents to the 2020 State of Grantseeking Report applied to a community foundation, and 72% indicated they received an award. Watch for your local community foundation’s application cycle and regularly submit requests. Consistency is key here.

According to the 2020 State of Grantseeking Report, the median award received from community foundations was $10,800. Check the average grant amount before you apply, but use the $10,800 as a touchstone if that information is not available.

Community foundations continue to play an important role in addressing local community issues. Consider forming collaborative efforts with other nonprofits to address shared community issues. Many foundations (including community foundations) favor collaborative, locally-rooted work.

Community foundations exist to strengthen their geographic area. They will prioritize proposals that clearly show direct benefit to local residents, alignment with documented local needs or opportunities, partnerships with other local organizations, and a deep understanding of the local context (including challenges and assets).

Visit the Charitable Giving database (U.S., Canada, or International) and use the search-by-name field or select “Community Foundation” under the Type of Grantmaker filter to identify community foundations. 

Many community foundations also house donor-advised funds (DAFs). When you approach a community foundation, ask whether there are any DAFs or affiliated funds that might increase your chances of support.

To locate community foundations in the United States, use a interactive map from the Council on Foundation’s Community Foundation Locator. In Canada, you can use resources from Community Foundations of Canada to identify local community foundations.

To identify community foundations in Canada, you can go to Find a Community Foundation provided by Community Foundations of Canada.

Community foundations are increasingly using community data to make funding decisions and recommendations. Your proposal should reflect current studies and reports to draw their attention (and hopefully their support). If you have unique data to share with them, that can help push your proposal to the front of the line.

Recognize that many community foundations are relatively lean in staffing. Make sure your reporting is clear, streamlined, and aligned with their requirements (this reduces friction and improves relationships).

Keep track of your outcomes carefully and be prepared to deliver clear impact-reporting that demonstrates how funds were used and what they achieved. Ensure that your reporting includes outcomes achieved in the community foundation’s geographic footprint