Community Foundations: What are they? Estate Planning and Charitable Giving
By Patrick Diamond, CFP®
The Rhode Island Foundation HQ in Providence, RI
The Power of Community Foundations in Charitable Giving
When it comes to charitable giving, many donors are passionate about making a lasting difference in the communities they care about most. Yet, translating that generosity into meaningful, strategic impact can be complex. That’s where community foundations play a powerful role.
What Are Community Foundations?
Community foundations are nonprofit organizations established to support charitable giving within a specific geographic area. They pool donations from individuals, families, and businesses to create a permanent source of community capital—funds that are invested and distributed as grants to local nonprofits, schools, and initiatives.
At their core, community foundations act as stewards of philanthropy. They help donors establish charitable funds, provide guidance on where gifts can have the most impact, and ensure that grants are made responsibly and in line with donors’ intentions. Unlike private foundations, community foundations offer a turnkey structure that manages the administrative, legal, and tax complexities of giving, allowing donors to focus on what truly matters—the impact of their generosity.
How They Strengthen Local Communities
The hallmark of a community foundation is its local expertise. Staff members understand the unique needs and opportunities in their region—whether addressing housing insecurity, environmental protection, education, or economic development. Through this deep knowledge and trusted relationships with area nonprofits, they serve as a bridge between donors and the causes that strengthen their communities.
Community foundations also play a vital civic role, often convening local leaders, nonprofits, and donors to tackle pressing challenges collaboratively. Their approach is rooted in long-term thinking—endowed funds provide ongoing support year after year, creating a sustainable engine for positive change.
Examples of Leading Community Foundations
Across the United States, many community foundations have become cornerstones of local philanthropy:
The Rhode Island Foundation (rifoundation.org) is the state’s largest and most comprehensive funder of nonprofit organizations. Founded in 1916, it manages hundreds of charitable funds supporting everything from education and healthcare to the arts and environmental initiatives. Its focus on equity and economic opportunity continues to shape Rhode Island’s future.
The Boston Foundation (tbf.org) is one of the nation’s oldest and most influential community foundations. It partners with donors and civic leaders to address regional challenges through grantmaking, research, and policy advocacy. The foundation’s emphasis on data-driven impact and community engagement has made it a trusted convener in Greater Boston’s social and economic landscape.
The New York Community Trust (nycommunitytrust.org) serves the New York metropolitan area, helping donors create lasting legacies that improve the quality of life for millions. With a history dating back to 1924, the Trust supports causes from affordable housing to climate action, leveraging its scale and local insight to address the city’s evolving needs.
Partnering with a Community Foundation
For individuals and families interested in charitable giving—whether through a donor-advised fund, scholarship, or legacy bequest—working with a community foundation offers both simplicity and strategic impact. Advisors can collaborate with foundation staff to align philanthropic goals with tax-efficient strategies, ensuring gifts are deployed thoughtfully and effectively.
In short, community foundations empower donors to transform good intentions into lasting community impact. By combining professional management, local insight, and a deep commitment to public good, they remain an invaluable partner for anyone looking to make a meaningful difference close to home.