How is a Community Foundation like CREATE different from other nonprofits?
Generally, nonprofit organizations raise money for their specific cause. They meet immediate social needs, and operate more like a “checking account” – raising and spending funds on an annual operating basis. Typically, what they raise is given completely to their cause each year. Their funds typically do not earn interest. The operation of community foundations differs slightly. CREATE operates more as a “savings account”, with most of its money invested through endowments that earn interest. The interest and fees are used to make grants and fund programs or initiatives of the community foundation. The principal of the endowment is never touched, so the fund lives and grows at CREATE Foundation in perpetuity. Also, nonprofits typically support one cause or a specific issue, but community foundations support the causes and organizations of interest to their donors. Endowed funds, support organizations, or donor advised funds might be used to support any number of charitable interests.
