For the past several decades, community foundations have been the fastest growing segment of philanthropy, outpacing the growth of independent and corporate foundations. They are philanthropic vehicles that combine charitable gifts of many donors and provide leadership and financial leverage in addressing the current and future needs of the community through various grant making activities designed to improve the lives of citizens in that community. They build and strengthen communities by making it possible for a wide range of donors to create permanent charitable endowments to meet critical needs.

The assets of community foundations originate from multiple donors, rather than a single donor as in the case of most independent and corporate foundations. Community foundations are attractive vehicles for channeling philanthropic dollars because they receive favorable tax treatment from the IRS. Federal tax law allows charitable contributions of cash to community foundations at 50 percent of the taxpayer’s adjusted gross income, while gifts of cash to private foundations are limited to 30 percent of the taxpayer’s adjusted gross income.

There are several types of different types of foundations and most data combines the aggregate of all foundations for statistical purposes.

Charitable giving in the United States totaled $260.28 billion in 2005. Of that total amount, foundations (private, corporate, independent, operating and community) were responsible for $30 billion, or 11% of that total. In looking at just community foundations, there are more than 700 community foundations in the United States and globally there are 1,175 in 46 countries.

Community foundations held $25 billion in the United States in combined assets in 2003, made grants of approximately $2.6 billion in 2003 and received an estimated $3.8 billion in gifts in 2003. Community foundations range in size from $1.7 billion in assets to some with assets of $100,000 or less.

In 2005, there 2,803 active grantmaking foundations in North Carolina including 2,605 independent, 93 corporate, 86 operating, and only 19 community foundations.

Community foundations in North Carolina have increased 81 percent from 16 to 29 since 1997. Eighty-seven of the 100 counties in North Carolina have at least one foundation, with some counties having a much higher concentration of foundations.

In 2005, community foundations in North Carolina made contributions totaling $896,909,806 to nonprofit organizations in North Carolina and around the world.

Nearly any type of asset – cash, securities, real estate, closely held stock, artwork and insurance – can be contributed to a community foundation. Gifts are made by bequests and by living donors who want to be involved in philanthropy.

All community foundations share the common goal of serving donors, non-profit organizations and their communities for a wide variety of charitable activities – human services, the arts, education, environmental projects, health, disaster relief and other charitable causes that benefit the community.

The Community Foundation Handbook: What You Need to Know. The Council on Foundations, Inc., 2005.

Foundation Giving in North Carolina: An Analysis of Trends for the 2005 Fiscal Year. NCGives, 2008.