Community Foundations
Community Foundations & Regional Development  
As part of its objective of stimulating the renewal of rural and regional communities in Australia, FRRR has supported the development of community foundations in a number of ways.
Regional community foundations are recognised as a flexible and responsive vehicle for bringing together a diverse range of stakeholders in rural communities and providing them with resources and tools to initiate key rural and regional renewal activities.
A community foundation is "an independent philanthropy organisation working in a specific geographic area which, over time, builds up a collection of endowed funds from donors, provides services, and makes grants and undertakes community leadership and partnership activities to address a wide variety of needs in its service area."
Adapted from International Community Foundation Support Organization Meeting, Oct 1998, Florida USA
Information and training
FRRR produces The Community Foundation Kit for Australian Communities. The Kit provides useful tools for community leaders who want to create and develop a community foundation in their community (download the kit using the link in the right hand column).
Each year, FRRR hosts a forum for community foundations. For further information please contact FRRR or Philanthropy Australia.
Stage 1: Feasibility
FRRR is able, subject to availability of funding, to provide a one off grant to a community foundation sponsor or convenor to carry out an initial feasibility study. These grants are up to $5,000.
The feasibility study should cover the following amongst other issues:
- Identify the need for and likely benefits flowing from a community foundation in the area.
- Identify the level of support for a community foundation from existing organisations (for example, not for profit organisations, local government, service clubs, businesses and Chambers of Commerce) and from potential donors (both current and bequest prospects).
- Ascertain whether a communications strategy will be able to mobilise these groups and individuals.
- Ascertain whether there is a core group of committed, even passionate, individuals from a cross section of the community who will be able to carry the idea forward.
- Identify a local solicitor who will act in a pro bono capacity for the community foundation. (FRRR is able to provide pro forma documents for incorporation as a charitable company with a Public Fund.)
- Identify existing information about priority needs in the regional area.
- Confirm the geographic scope of the community foundation: when do people stop relating to an area as a region?; What population will be needed to make the community foundation viable? (A population of 100,000 is suggested in the US, but less in the UK and Canada.)
The study should demonstrate that there are potentially enough financial and human resources successfully to set up and operate a community foundation in that particular region.
Stage 2: Starting Up
Following a positive finding from the feasibility study, FRRR will consider an application for a grant of between $20,000 and $40,000 to implement the objectives of the regional community foundation. These grants will depend on the annual funding priorities and capacity of FRRR and will be subject to conditions such as:
- The funding must be used to advance a specific project in your area that you will need to nominate. FRRR will need to know the project objectives and key milestones over the 12 months funding period.
- The community foundation must seek to match the FRRR grant with grants from other sources over the year. In kind donations and volunteer hours may be included.
- The funding will be for one year and will then be reviewed.
- FRRR will require appropriate recognition of the grant on publicity material.
As mentioned previously, FRRR in association with Freehills, Solicitors, is able to provide a set of pro forma documents to a solicitor holding a current practising certificate.
These documents include a Constitution, Trust Deed, Consents to Act as Directors and Secretary, Applications for Registration with the ASIC and a recent ATO Tax Ruling in relation to charities.
In summary, Freehills and FRRR recommend the structure in `the Regional Community Foundation Model' linked in the right hand column.
(It should be noted that rural and regional development is not regarded in itself as a charitable or public benevolent activity in Australia and the usual tests must be met. This contrasts with FRRR which has special tax status.)
Stage 3: Development
FRRR plans to support regional community foundations as they develop through a number of initiatives, some in collaboration with Philanthropy Australia. A Kit has been produced in 2001 and an updated version in 2004. Philanthropy Australia is arranging a portal for community foundations.
FRRR will also seek to network community foundations for information sharing. A further training forum will be held annually, subject to FRRR's priorities.
FRRR in conjunction with Philanthropy Australia would like to thank all the speakers and delegates that attended this year’s forum to make it such a great success.
Speakers Notes are now available for you to download (see the link at right)
Stage 4: Advocacy
FRRR in conjunction with Philanthropy Australia commissioned a research report into the barriers in forming community foundations in Australia. This work was supported by a grant from the Charles Stewart Mott Foundation.
An overview of the executive summary and the report are available to download on the link below.
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