Families, individuals, businesses, and nonprofit groups establish funds within community foundations into which they can contribute a variety of assets to be used for charitable purposes. The people or organizations that establish the funds can then recommend that grants be distributed, in the name of the fund or anonymously, to qualified nonprofit groups and schools. The donor receives a charitable deduction in the year that gifts are made into their funds.
The assets of community foundations are pooled and invested, with donors typically having a choice of investment products.
The funds established at community foundations can be expendable funds (i.e., grants can be made in any amount at any time) or they can be endowments, which limit distributions to the interest earned on the assets. Endowments last in perpetuity.
The first community foundation was set up in Cleveland in 1914 by Frederick Goff and operating now as the Cleveland Foundation. Others soon followed including the California Community Foundation and the Chicago Community Trust.
Community foundations
are now a global phenomenon. There are at least 700 in
the United States and perhaps 1000 more around the world
with numbers
growing rapidly.
The above definition is from Wikipedia, the free
encyclopedia
Source:
http://en.wikipedia.org/wiki/Community_foundation
The following is a list of community foundations in Kentucky: