Community Foundation Sonoma County - Frequently Asked Question (FAQs)
1. What is a Community Foundation?
A community foundation is a public 501(c)(3) charity that serves as a vehicle for community philanthropy. The community foundation receives contributions from donors — including individuals, organizations and corporations — pools them for investment purposes and reinvests in the community through grants to local charities. There are more than 700 community foundations in the United States.
2. What is the advantage of a community foundation over a private foundation?
Community foundations, in addition to being knowledgeable about local needs, provide an array of services to donors who wish to establish endowed funds without incurring the administrative and legal costs of starting and operating a private foundation.
3. What is endowment?
Endowment defines charitable gifts permanently invested for current and future needs. A percentage of the endowment fund balance is distributed each year for charitable purposes. As the endowment grows, more funds are available for the community.
4. How are the Community Foundation's assets managed?
Our funds are combined into investment pools for economy of management and access to the best management and advisory talent available. Four pools provide donors with options to meet their philanthropic goals.
5. What is the long-term investment strategy?
For long-term investments, our strategy is designed to protect and increase assets over time. Investing to sustain endowment funds also requires an acceptance of market volatility. Our long-term investment policy specifies a target asset allocation among seven major categories of equity and fixed income investments. It also requires regular portfolio rebalancing to its target.
Local professional comprise our Investment Advisory Committee, which meets regularly to guide our investment policies and monitor the performance of our professional managers. The Committee's work ensures that our portfolio is well-managed and that it produces an ever-increasing income stream for the long-term benefit of our community.
6. How are decisions made about who receives grants?
Applicants for competitive grants submit letters of intent describing their project or program. These are reviewed by our staff and our Grants Distribution Committee. This committee then evaluates all grant applications and makes recommendations to our board of directors. All grants are approved for funding by our board.
7. How much does the Community Foundation grant each year to nonprofit organizations?
In general, the major portion (92%) of our total grants comes through donors and nonprofit organizations with funds at the Community Foundation. On average, we award $1.5 million in grants annually, which comprises 8% of our total grantmaking. Since 1983, the Community Foundation and our donors have awarded more than $116 million in total grants.
8. Does the Community Foundation receive funding from city, county and state government?
No. the Community Foundation is a public 501(c)(3) charitable foundation. Its funds come from donations from individuals and organizations and from grants from private foundations.
“There’s never enough money to solve all the current pressing community needs,” says Jeannie Schulz, founding board member who helped design the blueprint of the Community Foundation. “In the early days, the board focused on creating an unrestricted endowment; we did everything we could to encourage a wide donor base.” More…
In 1995 when former Santa Rosa Mayor, Charles "Chop" DeMeo chose to leave his $16 million estate for the benefit of Sonoma County teens and homeless mothers, he knew he would be creating a bridge to the future. His legacy, the DeMeo Teen Club, a supporting organization of the Community Foundation, is a perfect example of creating something lasting value that spans generations