The Case for Community Philanthropy

May 22, 2013
Publisher(s): Aga Khan Foundation USA; Charles Stewart Mott Foundation; Global Fund for Community Foundations; Rockefeller Brothers Fund

Across the globe, citizens are bringing the practice of community philanthropy to life in ever-evolving ways. They are creating and governing new organizations that raise and give local money and other assets. They are customizing programs to fit community needs and increase awareness about local issues. They are convening community leaders, strengthening civil society, and planning for the long term.

Community philanthropy organizations are multiplying. Between 2000 and 2010, one type — community foundations — grew by a remarkable 86%, with an average of 70 institutions created every year.A number of factors have been cited to explain this growth, including organizations supporting development of the practice, a flexible organizational model, long-term funding, and expanding efforts to build civil society across the globe.

While community foundations are the most popular form of community philanthropy, new kinds of organizations are pushing the boundaries of the practice. “Over the last several years, there’s been a newer wave of community philanthropy organizations,” says Halima Mahomed of TrustAfrica. “They are organic, rooted in context, not wedded to a particular concept, and they don’t tick the boxes of someone else’s notion of community philanthropy.”

At its core, community philanthropy taps into the drive of local people to help each other, a naturally occurring asset found in all societies and cultures. Indeed, many practitioners liken the practice to a communal impulse as much as an organizational form.

Given that community philanthropy is uniquely able to channel that impulse into lasting local institutions, and has the flexibility to be customized to local circumstances and personalized to local donors, it’s no wonder that communities are taking an interest.