Cleveland Trust Company accountant and lawyer, Frederick Harris Goff, is given the credit for creating the first community foundation in 1914. Many people disposed of their wealth through use of philanthropic devices. The principal device in those days was private foundations. Goff had the idea that people of modest means could also engage in large-scale philanthropy if they pooled their contributions. He thought that the distributions from such a pool could be made not by a bank but by a committee representing the community. The bank as the sole trustee and with a five-member distribution committee was given responsibility for distributing proceeds from the trust funds.
Although they vary somewhat, all community foundations share a common purpose: they serve as bridges between donors in a community and the institutions whose collective mission is to improve the quality of life for everyone in their region. Community foundations make grants to community groups from funds established by individuals, families, businesses and others that want to support the work of nonprofits, schools and other groups that address community concerns. To ensure that resources will be available for many years, community foundations focus on establishing endowed funds that grow over time. The earnings on these funds are available for grantmaking.
Community foundations are knowledgeable about the communities they serve and the choices available to help donors reach their philanthropic and financial goals. They are governed by community leaders and are accountable to the communities they serve.
Today there are nearly 650 community foundations in the United States with assets of over $29.7 billion. In 2002 grants awarded exceeded $2.5 billion. In Washington State community foundations are based in Wenatchee, Moses Lake, Walla Walla, Spokane, Bellingham, Seattle, Tacoma, Vancouver. There are several just beginning or are affiliates to the above serving in different communities.
