Community foundations are established to collect and invest endowment capital and distribute portions of the investment earnings to local, non-profit organizations. Every year additional portions of the investment earnings are reinvested, allowing the endowments to grow over time. Community foundations are established as non-profit organizations and are governed by a board of directors made up of members of the local community. To learn more about Iowa Community Foundations or to find your local community foundation- click here.

Community foundations make grants to local, non-profit organizations based on the advice from donors to the endowment. Donors can specify a given organization or general area of concern within the community. Nationally, most community foundations find that donors directly advise about 80 percent of the foundations' grants. Community foundations also pool resources by allowing local, non-profit organizations to build their own endowments through the foundations. Community foundations are attractive to donors who want to leave a lasting legacy in their own communities by contributing to either specific or broad interests, while receiving maximum tax advantages.

Additional Information
Community foundations have three distinct features: Building permanent endowments that invest and protect principal, distribute earnings in the form of grants, and allow the creation of donor legacies; Broad, flexible purposes assisting arts and culture, economic development, education, environment, health and human services, recreation areas and supporting high-impact community opportunities; Personalized giving programs allowing multiple charitable intents from various types of contributions such as cash, stocks, property or bequests to gain maximum tax advantages and involvement in establishing funds that can be unrestricted, field of interest, donor designated or advised.