- WHAT IS COMMUNITY FOUNDATION NETWORK (CFN)?
Established in 1991, Community Foundation Network is the national network linking, promoting and supporting over 60 community foundations across England, Northern Ireland, Scotland and Wales. For more information, go to about us
- WHAT ARE COMMUNITY FOUNDATIONS?
Community foundations are charitable trusts that promote and support local voluntary and community activity. They have two main roles: building endowment and managing funds for donors as well as making grants to charities, linking local donors with local needs.
Community foundations allow donors to specify how, where and over what period of time their money is spent. Gifts of cash, shares, trusts, bequests and property are pooled in multipurpose endowment funds, creating a capital sum whose earnings address donors' specific interests. For more information, go to about community foundations.
- WHERE DID COMMUNITY FOUNDATIONS START?
The first community foundation was established in Cleveland, Ohio, USA in 1914. Since then, they have spread round the world. In 2005, there were at least 1175 community foundations operating in 46 countries. At least 700 have been established in the United States alone. In 2003, US community foundations had collective assets of US$34.9 billion and made grants to the value of US$3.8 billion. For more information, go to general information.
- WHERE DO COMMUNITY FOUNDATIONS NOW OPERATE?
At least 46 countries now have community foundations, including Australia, Canada, Germany, Italy, Poland, Russia, Mexico and South Africa, as well as the USA and the UK. There are at least 1175 community foundations worldwide. For more information, go to links (the wider community foundation movement).
- HOW MANY COMMUNITY FOUNDATIONS ARE THERE IN THE UK?
The first UK community foundations appeared in the late 1970s. By 1991 there were 15 established community foundations and by 2005 there were 57 - 37 fully established and 20 at varying stages of development. Now over 90% of the UK population has access to one. For more information, go to finding community foundations.
- WHY ARE COMMUNITY FOUNDATIONS DIFFERENT FROM OTHER CHARITIES?
Community foundations are unique mechanisms for giving to charity. Their flexibility and personalised services allow donors to specify how, where and over what time period their money is spent. Community foundations offer an opportunity to channel help towards meeting local needs and allow donors to see tangible results in their local community. For more information, go to for prospective donors.
- WHAT FUNDS DO UK COMMUNITY FOUNDATIONS HOLD?
By March 2004, community foundations held about £90 million in endowment, funds for the future. Community foundations offer a variety of funds: nearly all will have a general fund and most will have several others from which to make grants for specific purposes, such as women’s funds, community arts funds or health funds.
- HOW DO COMMUNITY FOUNDATIONS FINANCE THEIR ACTIVITIES?
Sustainable development is the eventual aim of all community foundations, with most financing their work from their own resources.
Community foundations charge major donors for the grant-making done on their behalf. Donors agree that this costs less than the time and money that doing this work themselves would involve. Many foundations have members who pay an annual subscription towards running costs and/or do local fundraising.
Some foundations have built up an administrative endowment to produce a stream of income – usually made up of donations from trustees who want to fund the development of philanthropy itself. In the initial stages of development, foundations often receive help from other charitable trusts that support the community foundation model and are keen to see a revival of this kind of philanthropy.
- WHERE DO I FIND MORE INFORMATION ABOUT THE COMMUNITY FOUNDATION MOVEMENT?
Several sections of the website explain more about community foundations in the UK - general information and for prospective donors. For more information on community foundations worldwide, visit the wider community foundation movement websites at links.
- ARE THERE ANY GOVERNMENT LINKS TO UK COMMUNITY FOUNDATIONS?
Many community foundations throughout England are making grants to assist children and young people through the Local Network Fund, part of the government’s strategy to eradicate child poverty.
Community foundations also piloted a programme of very small grants for new and emerging grass roots groups, in particularly disadvantaged areas, for the Home Office Active Community Unit. The programme (Community Resource Fund) which was considered a great success, has helped inform the government’s new Small Grants Action Plan. Some community foundations have also managed government funds such as Neighbourhood Renewal Unit community chests, or funds from the European Social Fund.
Several MPs, including some senior politicians, are involved in their local community foundations. For example, Tony Blair is the Vice President of County Durham Foundation.
- HOW MUCH DO UK COMMUNITY FOUNDATIONS DISTRIBUTE IN GRANTS?
In 2003-04, they gave over £53 million. Nineteen community foundations each distributed over £1 million in grants, including two who gave out more than £5 million. Over £215 million has been distributed in grants by community foundations since 1992. Combined, community foundations are one of the largest non-government grant-making bodies in the UK.
Answers for prospective donors:
- WHAT ARE THE BENEFITS OF GIVING THROUGH A COMMUNITY FOUNDATION?
Giving through a community foundation means you are giving locally and making a long-lasting impact. It is a convenient, cost-effective, simple and flexible form of giving. Community foundations are accountable for the grants they make – and can advise you on tax-effective ways of giving. For more information, go to How to Make Donations.
- WHY SHOULD I GIVE THROUGH A COMMUNITY FOUNDATION, RATHER THAN DIRECT TO A CHARITY?
As a potential donor, picking your way round the charitable world can be an arduous task. Who, what, where or how do you wish to help? Uncertainty over the precise destination of gifts and lack of involvement in the decision-making process means many donors seek the tangible rewards and impact of giving locally. But without guidance, identifying and assessing the needs of grassroots groups can prove daunting. This is where community foundations help, with their in-depth knowledge of local communities.
- WHAT ARE THE BENEFITS OF CORPORATE GIVING THROUGH A COMMUNITY FOUNDATION RATHER THAN DIRECT DONATIONS OR SPONSORSHIP?
Community foundations make corporate giving hassle-free and straightforward. They are ideally placed to help companies wishing to demonstrate commitment and involvement in their local community. Companies can outsource their in-house Corporate Social Responsibility function to their local community foundation and benefit from the efficiency, impact on staff motivation and recognition of giving locally. For examples of corporate giving go to Current Corporate Donors.
- WHAT KIND OF DONATIONS CAN BE MADE THROUGH COMMUNITY FOUNDATIONS?
Community foundations work with a wide variety of donors - individuals, families, businesses, charitable trusts and statutory bodies - with a broad range of means.
Donations vary widely in size and form, including gifts of cash, trusts, bequests, shares or property. Donors can direct their funds to a favourite cause, organisation or specific geographical area. Donations can be pooled into themed funds to address a particular issue. A donation to a general endowment can be used more flexibly to make grants for a broad range of local activities. For examples of donations, go to How to Make Donations.
- I CAN’T AFFORD A BIG DONATION, BUT I WANT TO SUPPORT MY LOCAL COMMUNITY. CAN I STILL GIVE THROUGH A COMMUNITY FOUNDATION?
All donations whether large or small, repeat or one-off are welcome. Small donations are pooled in general funds. Advice on tax effective giving is also available. For more information, go to for prospective donors.
- HOW CAN I GIVE TAX EFFECTIVELY THROUGH COMMUNITY FOUNDATIONS?
The main ways are by using Gift Aid, giving shares or property, leaving a legacy or by joining a payroll giving scheme. You can get advice on tax effective giving appropriate to your particular circumstances from your local community foundation or from your own financial adviser. For more information, go to for prospective donors.
- IS ESTABLISHING A FUND THROUGH A COMMUNITY FOUNDATION A GOOD ALTERNATIVE TO SETTING UP MY OWN TRUST?
Many donors have found establishing a fund at a community foundation a very straightforward and convenient alternative to setting up their own charitable trust.
| |
Setting up a charitable trust |
Establishing a fund through a community foundation |
| Set-up procedure and costs |
must register as a charity and apply to the Charity Commission |
simple agreement;
no start-up fees or costs |
| Investment, audit, accounting and tax |
must fulfil financial and administrative requirements or contract or hire staff |
community foundation handles all financial and administrative management, sorts out audit and reports to Charity Commission |
| Grant management |
must research and check activities and status of all recipient organisations;
has ultimate say in all grant decisions |
community foundation verifies activities and status of all potential grantees;
donors have access to grant-making know-how and services; donors can be as involved as much or as little as they want in the grant-making process; donors make recommendations to community foundation's Board on grants to be made; |
| Privacy |
required to keep public records |
anonymity of donor can be maintained if wanted; if the donor wishes, the community foundation can serve as a buffer between donor and grant-seekers |
| Profile |
responsible for own profile |
community foundation can raise donor's profile in the community by making grants in donors' name and featuring the donor in publications |
| Networking |
must find own networks and information sources |
community foundation networks like-minded donors; connects donors to variety of groups and issues in the community |
For examples, go to How to Make Donations.
- AS A PROFESSIONAL ADVISER, WHY SHOULD I ADVISE MY CLIENTS TO GIVE THROUGH A COMMUNITY FOUNDATION?
Community foundations are the ideal product for financial advisers, solicitors and accountants with clients wishing to give. Many are reluctant to recommend specific charities to clients for reasons of impartiality, but as community foundations support a wide variety of voluntary and community activity they can be recommended with a clear professional conscience. Foundation staff are on hand to offer convenient, user-friendly advice, discuss tailored options and provide a simple answer to the client’s requests. For more information, go to Professional Advisors.
Answers for grant seekers:
- WHO DO COMMUNITY FOUNDATIONS MAKE GRANTS TO?
Most grants support local community groups and voluntary organisations. For examples of grants made, go to Grants Available and for advice on applying for a grant, go to How To Apply .
- HOW IS GRANT-MAKING ADMINISTERED?
A board of trustees, drawn from all sectors of the local community, governs community foundations' grant-making. Community foundations also draw onexpert advice from the community by involving volunteers in grants committees. Comprehensive grant making policies and procedures, combined with extensive knowledge and understanding of the local community and its needs, ensure grants are targeted responsibly and carefully. For more information, go to About Us .
- HOW CAN I APPLY FOR A GRANT THROUGH A COMMUNITY FOUNDATION?
For more information, go to Applying for Funding and contact your local community foundation. Community Foundation Network’s London office does not make grants or handle grant applications – all grant-making is done by local community foundations.
- DO ALL COMMUNITY FOUNDATIONS RUN THE SAME KINDS OF PROGRAMMES AND MAKE THE SAME KINDS OF GRANTS?
Community foundations’ grant-making programmes vary according to donors’ wishes and the needs of the communities they serve. For more information, go to Applying for Funding.
