How do community foundations differ from other nonprofits?
Most nonprofit (United Way, Habitat for Humanity) provide direct and specific services to the community such as feeding the hungry, providing shelter or building homes. Community Foundations have a broader mission that involves improving the lives of those who live within a specific area or community. The biggest distinction between community foundations and nonprofits is that community foundations support an expansive group of nonprofits who provide much needed services and programs in their community versus a singular focus. Some nonprofits also rely on annual fundraising campaigns that involve employee donations from local businesses and the money is used within that same year. Community foundations focus on establishing permanent, long-term endowments. Most nonprofits do not attempt to manage endowments or long-term funding and often partner with community foundations to help manage these types of gifts.
