Because community foundations are essentially local entities, they have deep
roots within the particular community they serve... Community foundations
generally provide a one-stop shop for donors who want their gifts to have
an impact throughout their communities.

Dan Caplinger, The Motley Fool, January 4, 2007

As private foundations are on the decline, community foundations are
thriving. According to The New York Times on April 4, 2006, “the most
robust rate of growth in giving last year was by community foundations…
Their giving increased an estimated 10.9 percent to a record $3.2 billion,
a record for them even after adjustment for inflation.”

Although the first community foundation was established in Cleveland in
1914, the model gained significant ground in the early 1990s alongside
the technology boom. Over the past twenty years, the United States has
seen a 300% increase in community foundations. There are currently 700
community foundations in the United States and at least 1,175 community
foundations in 46 countries outside of the United States, with at least
another 154 in development around the world.

For most individuals, especially those with Donor Advised Funds, community
foundations offer significant benefits for meeting their philanthropic needs with:

• In-depth knowledge of the community
• Professional grantmaking and evaluation
• Endowed funds pooled for maximum investment returns
• Ability to accept complex gifts
• Favorable tax treatment for donations
• Low cost