How does a community foundation become self-sustaining?
The community foundation model differs from other nonprofits in that it is designed to become self-sufficient after an initial period of asset growth. Operating on the endowment concept (the principal is invested and only the income is spent), community foundations do not draw funds out of the community for administrative expenses on an ongoing basis. Instead, administrative expenses are funded through fees based on the total assets that are managed (on average, two percent).
