ARTICLE
The Value of Community Foundations
A Connective Layer and Catalyst for Change
Community foundations like Eastside Foundation play a critical role in bringing diverse stakeholders together to address socio-economic challenges and opportunities, often providing funding through grants and other resources. They engage in a broad spectrum of initiatives, including homelessness, substance abuse, affordable housing, mental health, education, the environment, transportation, equity and social justice, as well as economic development and responsible growth.
A Connective Layer and Catalyst for Change
Like other nonprofits, community foundations are governed by a board of directors, are funded by a wide range of donors. They address a variety of community needs by awarding grants and working directly in the community. In comparison, private foundations are generally started by a family, individual, or corporation and support specific charitable goals aligned with their mission, under relatively few constraints.
According to the National Council on Foundations, there are approximately 900 community foundations in the United States.
Bridging the Gap Between Sectors
Community foundations bridge the gap between businesses, governments, and nonprofits, which often operate in silos. Each of these sectors has its own strengths, but they also have limitations when working independently.
- Governments typically focus on public policy and large-scale initiatives
- Businesses focus on profitability and growth
- Nonprofits concentrate on specific social causes and operating realities
- Philanthropists focus on distribution of charitable giving
A community foundation like Eastside Foundation brings these groups together with a common goal of strengthening the community. By serving as a trusted intermediary, the foundation facilitates collaboration that leverages the strengths of each sector. This collaborative approach can lead to innovative solutions that are more holistic, sustainable, and impactful.
Bringing community members together and giving all of them a voice in the development of solutions also ensures that initiatives are aligned with local needs and priorities. This participatory approach leads to more effective outcomes and fosters a sense of ownership and pride among stakeholders.
Focus on Community
Another strength of community foundations is their nonpartisan status and a singular focus on community improvement. Unlike government agencies, which are subject to political pressures, or businesses which are driven by profit objectives, foundations can operate independently of such constraints.
As nonpartisan conveners, community foundations bring together stakeholders who might otherwise be hesitant to collaborate due to differing political agendas. This neutrality is valuable in times of political polarization, where finding common ground can be challenging. Community foundations navigate these divides by embracing shared goals that transcend partisan politics.
Facilitating Effective Communication and Collaboration
One of the key roles of a community foundation is to facilitate communication between stakeholders who may not typically work together. Each sector often speaks its own “language” and operates under different priorities and constraints. A foundation helps translate these different perspectives and finds common ground, ensuring that all parties are aligned on the goals and methods of a project.
Moreover, community foundations are skilled in creating forums and platforms for dialogue. Whether through regular meetings, workshops, or public discussions, foundations provide the safe and productive space and structure needed for meaningful conversations. This helps to break down barriers, build trust, and create a sense of shared purpose among all participants.
Mobilizing Resources and Expertise
Community foundations have the unique ability to mobilize a wide range of resources, both financial and non-financial. Their reputation for impartiality makes them attractive partners for a variety of stakeholders. These foundations connect donors and organizations with projects that align with causes they care about and ensure that resources are used effectively and strategically.
- Governments trust foundations to manage funds or implement programs because of their proven track record and community focus.
- Businesses see value in partnering with a foundation to enhance their corporate social responsibility efforts and more efficiently invest in the community where they operate.
- Philanthropists see a reliable and trustworthy partner to make an impact.
- Nonprofit organizations benefit from community foundation resources and deep networks.
Community foundations also mobilize expertise, bringing together specialists from various fields to design and implement comprehensive programs. This multidisciplinary approach enhances the effectiveness of community development initiatives, ensuring that they address issues from multiple angles.
Mobilizing Resources and Expertise
Community foundations receive funding from corporations, philanthropists, and the general public, and then pool those resources to invest back into the community in the form of grants and scholarships. This funding is essential for the survival and operating stability of any nonprofit organization. The value and distribution of that grant money is in turn dictated by the source of the funding. The funding will come from one of three categories:
- Field of interest funds – for specific causes (e.g. mental health, education, etc)
- Designated funds – for only one specific purpose or program
- Unrestricted funds – as the name suggests, to be used for a wide variety of purposes
Mobilizing Resources and Expertise
Community foundations such as Eastside Foundation are invaluable in the effort to create stronger and more resilient communities. Their unique ability to directly connect government, business, nonprofits, and the general public, combined with their nonpartisan and trusted status, allows them to convene and mobilize resources in a way that other organizations cannot. By serving as a bridge between sectors and a connective layer, community foundations facilitate better communication and collaboration, to address complex social and economic challenges while driving meaningful, lasting impact.
