A Community Foundation is an independent philanthropic organisation that operates in a specific region. Over time, it typically builds up a collection of endowed funds from many donors in the community.
It uses these funds to provide services to the community and its donors, make grants and undertake community leadership and partnership activities to address a wide variety of needs in its service area.
FRRR has been a catalyst for several Foundations, providing financial support for feasibility studies as well as supporting the work of many Foundations around Australia through a Sustainability Grant, which enables them to meet their operating costs.
Live local, give local
Community Foundations are an extremely effective way of developing and delivering place-based philanthropy.
Such groups are ideally placed to support local activities, and facilitate grass-roots philanthropy because there are many people who choose to ‘give where you live’.
Community Foundations can be caused based, but are more typically focused on a particular geographic area, enabling donors to channel philanthropic investments to a particular location, thus creating and growing a local culture of philanthropy.
They often start as a result of local leader's desire to create a new future, enabled via a locally owned and focused organisation that targets a particular community need.
Some larger Trusts and Foundations are also choosing to partner with local Community Foundations, tapping into their network, knowledge and expertise.
At FRRR, we see the impact of such partnerships through the likes of the Back to School program and the Tomorrow:Today Foundation’s annual small grants program in Benalla.
A national network of Community Foundations
At present, there are approximately 35 Community Foundations operating across Australia, with the majority in rural and regional areas.
Running a Community Foundation isn’t easy but they have common issues and challenges - some of which were discussed at the Annual Forum – such as building a corpus, deciding which projects to support, and maintaining momentum.
Thanks to a project being undertaken by Australian Community Philanthropy with funding from FRRR and the Lord Mayor’s Charitable Foundation, (themselves a Community Foundation), we will soon have a national picture of Community Foundations, as well as a better understanding of their key challenges and possible approaches to strengthening Community Foundations.
Community Foundations and FRRR Donation Accounts
A number of Community Foundations utilise our Donation Accounts to enable them to provide grants to a wider group of organisations, and support more activities than may be possible through a traditional Community Foundation structure. A great example of the successful use of a Donation Account is the partnership between FRRR, Visy Corporation and Tumut Community Foundation.
Donation Account partnership in practice
The Tumut Community Foundation reports that the Visy partnership has made a tangible difference in their community, aiding capacity building and supporting some fantastic achievements by community groups.
From 2006 to 2011, this Donation Account partnership has had some notable achievements:
- Distributed $280,000 in Visy Community Grant funding across 97 projects
- 178 applications were received, seeking $1 million in project funding
- Each grant averaged $2,880
- 80% of grants were below $4,999 but they ranged from $400 to $13,500
- Supported 60 community organisations, few of whom had DGR status
The depth and breadth of projects is truly impressive, as these examples attest:
Project Outcome Batlow art projects Now accepted as part of community with a literary club recently being formed Movies by Moonlight An annual community celebration in Adelong Tumut & District Concert Band Instruments for hire project Increased band numbers and the bandmaster from outside the area has just opened a music store in Tumut, with increased tutoring in schools across the region; Tumut Shire Youth Council – Youth in Philanthropy. Managed two small grant rounds for youth projects Murrurundi Puppets Domestic violence project rolled out in all local primary schools. It immediately identified one case of domestic child abuse
Youth Council Music Jam
supplying sound equipment for a monthly jam, leading to a performance at Youth Council’s Youth week Party in the Park. A number of these performers were recorded at a local recording studio for the separate High School CD project, which provides an alternative to participation in sport Kiddylink Play Group Increased participation in group from low income families and increased interaction with senior community members / volunteers Annual Community Grant Celebration Brings groups of successful recipients together to share stories, learn about what’s going on in community and develop networks e.g: established contacts for visits by Adelong Public School students to the Adelong Men’s Shed.
Community Foundations we have supported include: