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Community Foundations’ Steps Toward Equitable Funding Practices

As community foundations stretch in new ways to respond to community needs, many are thinking differently about their role, their value proposition to donors, and how they assess impact.

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Community foundations play a vital role directing resources to areas of greatest community need — especially in times of crisis. In a year marked by dual crises of a global pandemic and a national reckoning on systemic racism, many community foundations have stepped into leadership roles that were entirely new to them. They have established COVID response funds that are distributing resources to support relief and recovery for their communities. Many — through grantmaking, donor education, convening, and advocacy — are playing an active role in helping their communities face histories of racism and oppression and shaping strategies to advance racial equity.

As community foundations stretch in new ways to respond to community needs, many are thinking differently about their role, their value proposition to donors, and how they assess impact.

Recognizing that many community foundations are already playing this role, we wanted to learn more about how they are doing so. Community Wealth Partners interviewed staff members from 13 community foundations, representing a range of geographies and asset sizes. In addition, we reached out to four philanthropic intermediary organizations that are structured differently from community foundations and have an emphasis on funding social justice organizations, grassroots organizations, and/or organizations led by people of color. These interviews yielded insight into how community foundations might think differently about their role and practices they could consider to deepen engagement with communities and donors.

Interestingly, most of the community foundations we spoke with had, in the past few years, adapted their mission statements to name a commitment to advancing racial equity in their community. This affects how these foundations identify organizations to fund through their discretionary grantmaking, the conversations they have with donors, and how they think about their impact. It also affects who has access to the foundation’s resources — both on the discretionary grantmaking side and from donor-advised gifts.

View the full report here. Findings from our research focus on three themes:

  • How and why more community foundations are forming a point of view on racial equity — and how that affects how they work with donors
  • Ways community foundations are fostering connections between donors and nonprofits
  • Evolving thinking about assessing impact

If you are connected to a community foundation, we’d love to hear how these themes resonate with your experience. How is your local community foundation showing leadership in your community? What questions is your community foundation grappling with? Send us a note on Twitter @WeDreamForward or email Lori Bartczak at lbartczak@communitywealth.com.

 

⇒ Read the Report

 

Special Opportunity: Community foundation cohort

Community Wealth Partners is planning a peer learning cohort for community foundations interested in finding new ways to foster connections between donors and nonprofits, starting in January 2021. If you are connected to a community foundation that is looking to adopt new practices to help connect donors with grassroots organizations, nonprofits serving communities of color, and/or organizations led by people of color, this cohort might be of interest to you. Contact Lori Bartczak to learn more.

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