What is a Community Foundation?

Philanthropy is the desire to promote the welfare of others; it is the expression of generosity in ways great and small. Acts of generosity are undertaken every day by our friends, family and neighbors. Our communities are sustained by the altruism of these individuals, whether it’s a monthly $10 contribution to a beloved cause or a significant bequest made by a family. Organizations know they can count on that donor’s monthly gift to help with their day-to-day operations.

But what if you wanted to continue supporting your favorite charities after your lifetime? Or you wanted guidance on where your philanthropic contributions could make the most impact? This is where a community foundation can be the most beneficial.

On one side are our under-resourced communities, while the other side consists of individuals who care deeply about using their financial resources to create an equitable community. Between these two lies a bridge – a vital connection that brings together those who wish to make a difference with those who need it most. Community foundations serve as this bridge, facilitating meaningful connections and impactful contributions that drive positive change. They customize giving solutions for individuals, families, businesses and the community at large.

At their core, community foundations mobilize enduring philanthropy to strengthen the fabric of communities both small and large, in part by building endowments. When you hear the word “endowment,” you might think of the endowments held by universities, churches or hospitals. When donors give to an endowment fund at a community foundation or they establish one themselves, their gift is invested in a way that creates perpetual support for the causes they care most about.

A community foundation can serve as a valuable solution for charitable giving, whether during your lifetime or after your lifetime. Endowment funds can be established using a variety of assets, including stock, real estate, retirements funds and even cryptocurrency. It is advised that donors consult with their tax preparer or estate planning attorney to determine the most suitable assets to contribute to charity and those that are best reserved for family inheritance.

For businesses, community foundations can provide efficient, cost-effective services and expertise to help plan, oversee and operate their corporate foundations, grantmaking and scholarship programs. They have the expertise to simplify and design philanthropic programs for local, national and international businesses that have a local presence and wish to give back to local communities.

Here in our state, the Arizona Community Foundation serves as catalysts for positive change, bringing together individuals, organizations, businesses and resources to address the most pressing needs in our community and build a more prosperous future for all Arizonans. QCBN

By Lisa Sahady

For more information on charitable giving, including business philanthropy, visit https://www.azfoundation.org/ways-to-give/corporate-giving/ or call one of our offices serving Northern Arizona: ACF of Yavapai County, 928-583-7815; ACF of Sedona, 928-399-7218; or ACF of Flagstaff, 928-526-1956.

Lisa Sahady is the Arizona Community Foundation regional director.