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What is a Community Foundation?

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Community foundations build permanent financial assets and are catalysts for place-based change, in rural areas, regional towns and major cities alike. Every community has its own unique resources: a combination of knowledge and wisdom anchored in place, deep trust and local leadership, relationships, networks, skills and financial assets.

The financial assets of a community foundation are typically managed and grown through a perpetual fund. A perpetual fund is like a community superannuation fund: every year, money is invested. The earnings going back into the community, enabling charitable projects.

Community foundations embody a sustainable model for philanthropy. Of the money they raise, some is invested to build a permanent endowment, while the rest goes into giving agile grants to local causes and front-line organisations. Local volunteers take responsibility for the transparent, collective governance of each foundation, leading community engagement, stewarding funds, and managing operations.

Community foundations are committed to developing long-term community capacity and adaptability. They don’t just respond to immediate need and inequities; they also listen closely to community to anticipate future needs, and fund longer-term systemic interventions to disrupt entrenched cycles of social and economic marginalisation.

Due to their perpetual trust structure, community foundations are long-term organisations that are well placed to ensure legacy benefits. Community foundations will always be community-led, ensuring that legacy resources are used to engage with challenges and changes that arise over time.

The community foundation model adapts to local needs and circumstances. While no two foundations are exactly the same, all share a number of key characteristics. They are:

Open and transparent. Every community foundation is a public-facing, not-for-profit organisation registered with the Australian Charities and Not-for-profits Commission, governed by local community members who are appointed transparently to volunteer boards.

Independent and non-commercial. Community foundations are of and for the community; they operate independently of business, political parties, religious institutions, or high net worth individuals or families. Every investment in a foundation is an investment in the community.

Collective and accessible. Community foundations remove barriers to civic participation; anyone can become a co-investor in their community’s development.

Trusted and neutral. Community foundations offer a unique platform for engagement and collaboration, bringing together civil society and corporate and government sectors, often brokering relationships across geographic and party lines, to work collectively for the communal good.

Perpetual and durable with a long term focus. Community foundations are built to withstand external forces, see beyond short-term funding horizons and outlast economic cycles. As regions grapple with complex economic changes, shifts in resource flows and demographics, and repeating natural disasters, community foundations align, connect and leverage community assets, so as to better engage with new challenges and changes. Community foundations are ideal backbone organisations to support the kind of long-term interventions required for systemic change.

Member Update / May 9th 2023

STOKED: a surf therapy program in the time of COVID

The STOKED Surfing Program continues to run in 2023, teaching young people surfing as a coping strategy for mental health, connecting them to community, and delivering education on mental health and wellbeing.

Read Case Study

The community philanthropy ecosystem

Community foundations offer a structure that makes it easy for donors, advisers, communities, and charities to get involved with grassroots giving.

I am a Professional Advisor

Accountants, financial planners, lawyers: all advise clients on how to build a lasting legacy. For clients who want to keep that legacy close to home, community foundations offer an ideal model.

I am a Charity

As grant-makers, community foundations work closely with charities and community groups in their area, partnering to strengthen impact for important causes.

I am a Donor

As a donor, you can support the causes and charities that matter to you in the place you call home, today and into the future, by giving to your local community foundation.

I am a Community Foundation

It’s in the name. Communities are at the heart of community foundations. Could your community be next to start one?

Want to join the network?

Whether as a member, affiliate, partner or supporter, there are plenty of ways to get involved with Community Foundations Australia. The easiest way to figure out what level of involvement best suits you and the organisation you represent is a conversation with us. We’d love to hear from you!

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History

Community foundations have been around for over a century.

1914

The Cleveland Foundation, the world’s first community foundation, is established in Cleveland, Ohio, USA, "as an alternative to private foundations so that people of modest means could respond collectively to the needs of their neighbors".

1923

The Lord Mayor’s Fund for Metropolitan Hospital and Charities is founded by Melbourne Lord Mayor Sir John Swanson. Today, a century later, it has evolved into today's Lord Mayor's Charitable Foundation – Australia's oldest and largest community foundation.

1954

Establishment of Geelong and District Community Chest, a precursor to the Give Where You Live Foundation, serving Geelong and the G21 region.

1997

Melbourne Community Foundation established. Now known as Australian Communities Foundation (ACF), this is a community foundation with a difference: ACF nurtures a community of givers with broad interests, supporting causes, charities and communities throughout Australia and some abroad.

2000

Foundation for Rural and Regional Renewal (FRRR) established. FRRR becomes a catalyst for the growth of community foundations in rural and regional Australia, providing seed funding, advice, and support for feasibility studies.

2000-2009

Twenty-three community foundations are established during this decade, the most active period to date of community foundation sector growth in Australia. Only two of these new foundations are in capital cities. Twenty year later, though four of them have ceased operating, the majority continue to grow and serve their communities.

2010-2016

A further 15 community foundations are newly created. All but one continue to operate to this day.

2021

Two new community foundations open their doors – Foundation SA and the East Gippsland Community Foundation – bringing to an end a five-year period when sector growth temporarily stalled.

What Our Members Say ...

"Thank you for the opportunity to speak at the workshop. Taking part has given me such a great insight into the wider development of community foundations, and a big jump in energy for things up here!"

"I really appreciate the Community Foundations Australia meet-ups, and the focus on supporting ourselves and others. Thank you for creating a reason to pause and take stock."

"I appreciate Community Foundations Australia’s readiness to help, whenever we need assistance."

"Thank you for the help you have provided… being welcomed back into the community foundation fold has been very pleasing and has provided more connections for us. We look forward to our continued relationship."

"Thanks, team. Some fabulous articles in the newsletter. Couldn’t have been more spot on in terms of timing for us."

"The introductions Community Foundations Australia have made have been invaluable, so too have been the opportunities to share knowledge on everything from software to organisational policies."

"The member catch-up sent my mind spinning about CRM opportunities. It’s very inspiring to hear what others are doing, there’s a lot to be learned!"

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Acknowledgement of Country

Community Foundations Australia acknowledges the traditional custodians of the country where Community Foundations Australia and its Community Foundation members operate. We recognise their continuing connection to land, waters and culture and pay our respects to their Elders past, present and emerging.