How Community Foundations work

Quality accredited community foundations, like the Leicestershire and Rutland Community Foundation, offer a full philanthropy advice service and customised grant portfolio development.

Community foundations are a fast and flexible way of helping those with funds to distribute, or those who don't have a giving vehicle set up for them.

Community foundations provide advice and planning support, help identify effective charities or groups to fund, handle administration, and work to standards endorsed by the Charity Commission for England and Wales. We also provide networking and donor education opportunities.

Community foundations establish funds for people who already have charitable trusts as well as those who are new to philanthropy and wish to set up a fund of their own with their community foundation.

There are 58 of us in the UK, all working within county boundaries and networked with each other with a small London office, to share best practice, IT and national contacts.

1. Philanthropy advice

Consultations and briefings on a range of issues to understand donor interests, including sector research.
Strategy setting and planning.
Opportunities for introductions, networking and visits.

2. Fund design

Selecting the right fund type Managing people’s charitable trusts.
Developing priorities, criteria, exclusions.
Promotion: deciding on the name of the fund.
Fund investment options.

3. Outreach

Promotion of donor funds to relevant charities and community groups.
Handling enquiries.

4. Handling and due diligence

Receiving and assessing applications.
Due diligence and eligibility checks.
Recommendations to the donor.

5. Making grants/disbursements

Working with the donor and their advisers on recommendations.
CF acceptance of legal and fiscal responsibility on the donor’s behalf.
Informing applicants.
Managing grant payments.

6. Monitoring, evaluation and reporting

Monitoring of grant expenditure
Reporting back.
Appraisal of impact.
Review of fund.