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A community foundation is a tax-exempt, independent, publicly supported philanthropic organization that is organized and operated as a permanent collection of endowed funds for the long-term benefit of a defined geographic area. The foundation seeks endowments from a wide range of donors and provides services to assist those donors.
These funds are invested, either by trustee banks and/or the foundation’s governing body, to preserve the value of the contributions received as permanent assets of the organization. Annual audits are performed and investment managers undergo an annual review to ensure a reasonable rate of return on all funds entrusted to the foundation. A summary of the annual audit for the Cadillac Area Community Foundation is available at this website. Using the interest income from invested assets, a community foundation supports charitable activities in the community through the award of grants. A community foundation has an independent governing body representing the broad interests of the community, with members serving limited terms and without compensation. The foundation is not controlled or influenced by other organizations, government units or charities, and adheres to a sense of “community” that overrides interests and objects of any particular individuals and groups. A common governing instrument covers all gifts and funds, including a “variance power” to modify the use of restricted funds if such restrictions become unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the community or area served. A community foundation is committed to the principles of equality and diversity, inclusiveness, and public accountability. For additional information about Michigan Community Foundations please visit the Council of Michigan Foundations website. |
