From Joanne Fritz,
Your Guide to Nonprofit Charitable Orgs.
FREE Newsletter. Sign Up Now!

Definition: A community foundation is composed primarily of permanent funds established by many separate donors for the long-term benefit of the residents of a defined geographic area.

Typically, a community foundation serves an area no larger than a state.

Community foundations provide services to donors who wish to establish endowed funds without incurring the administrative and legal costs of starting independent foundations. According to the Council on Foundations, there are more than 500 community foundations across the United States today.

Some examples of community foundations:

• The Cleveland Foundation
• The New York Community Trust

Examples: "Community Foundations typically serve a particular geographical area."