|dc.contributor.author||Rockey, Daniel K.||
|dc.description||x, 60 p.||en_US
Community foundations are one of the fasting growing sectors of philanthropy in
the United States today. Each community foundation has individual
characteristics that contribute to the improvement of its own community. As a
charitable organization, community foundations make grants to sectors of the
community for emerging needs.
1.2 About Philanthropy
Philanthropy is the philosophy and practice of giving to nonprofit organizations
through contributions. Philanthropic agencies collect gifts from donors and then
distribute the funds to areas of need in the community. Philanthropic
organizations act as the market mechanism in its "economy". The supply of donor
contributions are granted to meet the demand of needs through the market
mechanism, known as philanthropy.
1.3 Description of a Community Foundation
Community foundations receive different types of funds from private sources and
manage them for charitable purposes. The primary purposes of community
foundations are to seek funds from donors, allocate and distribute these funds,
and provide leadership for community activities. The importance of involvement
by community foundations in community development continues to grow with the
diminishing role of government support for such programs.
1.4 How Community Foundations Differ from other Foundations
Foundations are organized in accordance to federal tax law. They are considered
public charities by such laws, having tax advantages over other types of
foundations. Additionally, there are special differences between community
foundations and private foundations. Such differences are the recognition of
exemptions for community foundations and advantages for donors who contribute
to community foundations.
1.5 Creating a Community Foundation: Beginning Factors
Two basic prerequisites for the success of a community foundation are a
community sufficient in population and wealth to sustain growth and intelligent
action before the foundation is launched to ensure long-term success.
1.6 Organizational Documents
Community foundations are created and controlled by their governing
instruments. The Articles of Incorporation and Trust Agreement designate the
operations of the foundation, determine the powers of the board of Trustees, and
specify how assets are to be distributed.
1. 7 Developmental Plan
For a community foundation to realize its full potential and to eliminate
confusion, a comprehensive development plan is stated. An overall development
plan acts as a guideline for the board of trustees by stating the policies for
raising funds and helping the community foundation attract the necessary capital
Community foundations grantmaking activities are both diverse and flexible.
Major areas of grantmaking include education, health, culture and the arts, human
services, and economic development. When issuing grants to these areas, it is
critical that community foundations choose the right project to fund,
demonstrating that the charitable purpose specified in its governing documents
are being furthered.
All elements of the community foundation make it the fasting growing sector of
philanthropy today. As charitable organizations, community foundations are
requested to make grants to the community that are of charitable purposes.
Because of the diminishing role of government in support of community
programs, the importance of the involvement of community foundations in
community development continues to grow.||en_US
|dc.description.sponsorship||Grand Haven Area Community Foundation (GHACF). Grand Haven, Michigan.||
|dc.relation.ispartof||Kalamazoo College Economics and Business Senior Individualized Projects Collection||
|dc.relation.ispartofseries||Senior Individualized Projects. Economics and Business.;||
|dc.rights||U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.||
|dc.title||Formation and Structure of a Community Foundation||en_US
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