Don’t Underutilize Your Community Foundation

When a little effort is expended to grow a relationship, community foundations can be your nonprofit’s best friend. They’re not competitors; they’re collaborators with a shared mission: helping donors give smarter, and growing sustainable support for nonprofit organizations. One way to make this even easier is by having your own planned giving website that connects seamlessly with donors and foundations.

What Is a Community Foundation, Anyway?

Think of community foundations as the gardeners of local philanthropy. The partnership of you and your community foundation plant the seed that is your donor’s gift; the community foundation nurtures and grows this generosity in a literal way,  and then your nonprofit reaps the harvest.

They hold funds from families, businesses, individuals, and even other nonprofits. These funds aren’t just stashed away; they’re invested to grow. The interest earned then flows out as grants or through donor-advised funds (DAFs). Rather than being hoarded within the foundation, these grants can go directly to your organization, if your donor chooses you as an area of support.

Most wealth is not kept in cash, and community foundations often have the resources to handle complex gifts like securities and real estate. Community foundations manage these typically sizable gifts responsibly and professionally, so that your organization can focus on programs and services. While it might seem like they’re just a “pass-through,” they’re planting, tending, and growing philanthropy so nonprofits can enjoy a bounty that will often last for years.

What Services Do Community Foundations Offer?

They’re not just money managers, as many often beleive. Community foundations specialize in managing endowments, donor-advised funds, designated funds, and scholarships. This means individuals and families can create lasting giving vehicles tailored to their goals, and nonprofits can outsource complex fund management while benefiting from professional investment expertise.

They also make it easier to accept non-cash gifts, from appreciated stock to cryptocurrencies, which can be a headache for nonprofits to process on their own, of at all. If your nonprofit is like most and doesn’t have a planned giving expert on staff, community foundations can help donors set up legacy gifts like charitable trusts or gift annuities.

Beyond money matters, they advise donors and nonprofits on giving strategies aligned with values and community needs. Many community foundations also lead local conversations, commission needs assessments, and bring together nonprofits, funders, and government partners to tackle big challenges.

Benefits You’re Probably Overlooking

1. Build Sustainable Funding With Endowments
Worried about donors who might “ghost” one day? Endowed funds at community foundations offer a solution. Donors can create funds that are invested long-term, with the interest gifted to your nonprofit each year. This means reliable income, and a legacy that lasts longer than any annual appeal. Your donors will appreciate the recommendation, as it creates a name for themselves that will last for generations while doing immeasurable good in the community.

2. Donor-Advised Funds That Are Personal and Ethical
Instead of your donor’s money sitting in a for-profit bank’s DAF, it can be with the local community foundation. They often offer more ethical investments, lower fees, and far better service. Your guidance and recommendations here can turn a one-time donor into a lifelong philanthropist. They’ll appreciate your involvement and insight, and probably save them some money in administrative fees, as well, that may mean more gifts to your organization.

3. Access to the Pros Your Donors Trust
Estate attorneys, financial planners, accountants – These are the types of professionals your major donors work with everyday, and if you can’t say the same, you may not be speaking the same language when it comes to the ask. Your nonprofit might not have these connections, but your community foundation probably does. These relationships can be the difference between a donor making a major gift or planning a legacy gift, and you remain included in the process. These are the types of professionals your major donors work with everyday, and if you can’t say the same, you may not be speaking the same language when it comes to the ask.

4. Planned Giving Help for Small Teams
If you don’t have a planned giving officer,, community foundations step in to help donors set up complex gifts. This means you don’t have to hire a trust lawyer or become an IRS expert overnight. They typically provide support or resources for donors who want to include an organization or organizations like yours in their estate.

5. More Than Money: Partnerships and Opportunities
 Community foundations are hubs of research, grantmaking, and collaboration. Knowing them means access to grants, sponsorships, and community initiatives that might otherwise fly under your radar. Plus, they want to know you – it’s literally their job to serve nonprofits like yours.

Your Foundation: Your Back-Office Sidekick

Imagine having a mini development team you don’t have to pay full-time. That’s your community foundation. They handle donor calls, manage gift processing, administer funds, and provide tax receipts. You receive the distributions. For small or busy teams, this kind of support saves hours and headaches, and reduces your legal and compliance risks.