Frequently Asked Questions About Community Foundations
What exactly is a community foundation?
Community foundations:
- pool the charitable gifts of many donors into permanent, income-earning endowment funds that benefit the local community
- make grants from the earnings of these funds to support a wide range of local initiatives – from health, education and social services to arts and culture and the environment
- provide leadership to their communities by bringing people together from all sectors to identify and address local issues
In Canada today, there are more than 175 community foundations with combined assets of approximately $2.7 billion dollars. In 2005 they distributed grants of more than $137 million to support local priorities across the country.
What is an “endowment”? An endowment is a fund which is maintained in perpetuity. The capital is invested to provide interest and dividend earnings which are then used to provide grants for the benefit of a local charitable organization or project.
How are community foundations structured? Each community foundation is autonomous and governed by a volunteer board of local leaders. Yet they are linked and supported by Community Foundations of Canada’s strong national network. The YRCF endowment funds are professionally invested by Harris Bank in diverse portfolios to ensure that they are managed wisely and profitably.
Who gives to community foundations? All kinds of people. Many types of gifts – cash, real estate, stock, artwork and insurance – are contributed to community foundations. Donors can choose to support their hometown broadly or designate a favorite cause or charity. Flexibility is the key. Community foundations provide many services to donors to help them make the most of their charitable gifts. Many charities also place their endowment funds with community foundations in order to benefit from greater returns on their investments.
When was the York Region Community Foundation started?
YRCF received its registered charitable status early in 2005.
Why is YRCF different from other charities in York Region?
There are over 1,100 registered charities in York Region. The very large majority do not have the capacity to build their capital and must rely on annual fundraising and grants to operate. Like any community foundation, the purpose of YRCF is to offer an additional source of funding via a permanent income-earning pooled fund for the community, available each year for these non-profit organizations to apply for grants to assist their work.
About York Region
York Region is made up of nine neighbouring communities – Aurora, East Gwillimbury, Georgina, King, Markham, Newmarket, Richmond Hill, Vaughan, and Whitchurch-Stouffville.- The region is distinguished as one of the fastest growing and diverse regions in the country:
- with one million residents across the nine municipalities, York Region is projected to grow by an astounding 40% by 2026
- centuries old towns thrive alongside young, burgeoning communities
- four of the 10 most affluent electoral ridings in Canada are in York Region alongside neighbourhoods with below-average household incomes
- the region includes a thriving farming industry, a high tech business hub and the Oak Ridges Moraine, one of the most significant landforms in southern Ontario and a treasure trove of plants, birds and animals.
With such astonishing history, growth and change comes a heightened awareness about the region and a realization that our once small town communities now have more metropolitan needs while retaining a community feel.
We have a unique opportunity to help shape a meaningful and sustainable future. See our recent work on Living in York Region: Vital Signs.
