It was in 2005 that the highly regarded Monitor Institute report declared that the field of community foundations was “On the Brink of New Promise,” and in the decade since, there have been countless working groups and initiatives to introduce innovative approaches to the field. At the same time, largely beneath the radar, a small but growing group has begun pursuing the innovative path we explore here. Mostly in small steps—but sometimes in larger ways—they are adopting elements of what could emerge as a new anchor mission to deploy all resources to build community wealth.

Why are these community foundations moving in this direction? What exactly are they doing? To find the answer, we examined a representative group of 30 innovative community foundations, of varying sizes, in various stages of development. For some, the shift involves a focus on catalyzing economic development. This generally involves a move beyond simply disbursing grants toward a leadership or catalytic role, proactively shaping initiatives, and using grantmaking in partnership with approaches like convening, piloting projects, and influencing policy. Others are rethinking how they use their assets and are experimenting with impact investing, which we define here as making investments that seek both financial return and social impact. In the process, these foundations are sometimes engaging donors and other investors around how they make investments. Some foundations examined here are doing both economic development and impact investing.

Through on-the-ground stories, this report examines the motives guiding this work, as well as the benefits, barriers, strategies employed, and steps involved in getting started. We share thoughts from leaders in the field on how this work might best evolve over time, and highlight the trailblazing work of 30 representative community foundations—the “Innovative 30.”

Download the full report below.

The “Innovative 30”

• Amarillo Area Foundation (Amarillo, TX): Leading the Panhandle Prosperity Initiative
• Arizona Community Foundation (Phoenix, AZ): Facilitating and funding loans for community development
• Arkansas Community Foundation (Little Rock, AK): Taking steps to invest in the local economy
• The Boston Foundation (Boston, MA): Investing in affordable housing and workforce development
• California Community Foundation (Los Angeles, CA): Supporting CDFIs and making micro-business loans
• The Chicago Community Trust (Chicago, IL): Accelerating the local food system and strengthening the local economy
• The Cleveland Foundation (Cleveland, OH): Leading the Greater University Circle Initiative and launching green worker cooperatives
• The Community Foundation for Greater Atlanta (Atlanta, GA): Leveraging anchor institutions for community economic development
• Community Foundation for Greater Buffalo (Buffalo, NY): Greening homes and creating jobs
• The Community Foundation for the National Capital Region (Washington, D.C.): Exploring a regional wealth building initiative
• The Community Foundation for Northeast Florida (Jacksonville, FL): Supporting affordable housing and community economic development
• The Denver Foundation (Denver, CO): Catalyzing cooperatives, social enterprise, and employee ownership
• Edmonton Community Foundation (Edmonton, Canada): Financing social enterprise and affordable housing
• Grand Rapids Community Foundation (Grand Rapids, MI): Fighting back against the foreclosure crisis
• The Greater Cincinnati Foundation (Cincinnati, OH): Advancing place-based impact investing
• The Greater Kanawha Valley Foundation (Charleston, WV): Committing to proactively build community wealth
• The Greater Tacoma Community Foundation (Tacoma, WA): Incorporating local impact investing into its endowment strategy
• Incourage Community Foundation (Washington Rapids, WI): Responding to local needs with a path-breaking commitment to impact investing
• Initiative Foundation (Little Falls, MN): Creating and retaining jobs
• Maine Community Foundation (Ellsworth, ME): Investing for impact in the local food system
• New Hampshire Charitable Foundation (Concord, NH): Pioneering support for CDFIs
• The New York Community Trust (New York, NY): Supporting community nonprofits, participatory budgeting, and more
• Oregon Community Foundation (Portland, OR): Making investments in a stronger local economy
• The San Francisco Foundation (San Francisco, CA): Creating pathways for local investing and job creation
• Santa Fe Community Foundation (Santa Fe, NM): Piloting impact investing and funding community wealth building
• The Seattle Foundation (Seattle, WA): Investing in sustainability, small business, and affordable housing
• Telluride Foundation (Telluride, CO): Accelerating and supporting local economic development
• Vermont Community Foundation (Middlebury, VT): Pooling assets for local investment and economic development
• West Central Initiative (Fergus Falls, MN): Directing and supporting regional economic planning to build community wealth
• Whatcom Community Foundation (Bellingham, WA): Building a healthier local food system