DISTINGUISHING COMMUNITY FOUNDATIONS FROM UNITED WAYS
(Historic View)

Community Foundation

United Way

Provides risk capital and project grants.

Larger gifts of assets from a smaller group of donors.

Broad-based grantmaking: health, education, arts, home services, environment, community development, youth.

Continuing funding.

All 501(c)(3) organizations and charitable organizations eligible for grants.

Endowment based in perpetuity.

Quiet, donor-oriented asset development strategy.

Community "savings account"

Provides operating support.

Small gifts from income (after payroll deduction) from a large number of donors.

Focused on human services.

Time-limited funding.

Membership organizations eligible for support.

Annual operating funding.

Public, community-wide, needs-oriented fundraising strategy.

Community "checking account".

United Ways and community foundations must work together in a community to achieve their individual and mutual missions. Clarity of role and purpose, distinctive competencies, open communication, mutual respect, and a desire to build community aid this collaborative effort.

Information obtained from the "Community Foundation Primer," 5/92. A product of the community foundation programs of the Indiana Donors Alliance.