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What Do Community Foundations Do?
Image description: A mother and her young daughter laugh and play together in shallow water at the beach on a sunny day.
This op-ed was originally published in the Traverse City Record-Eagle on March 2, 2025.
When I mention I am on the Board of the Grand Traverse Regional Community Foundation, I sometimes get the following response: “Really? What do community foundations do?” It’s an honest question that deserves an honest answer. Simply put, community foundations invest the money of community members in local organizations that have a passion for creating healthy, resilient, thriving communities. That said, let’s start from the beginning.
The lifeblood of any organization is funding. An example I often use is an investment portfolio. To make a financial investment, you would likely set aside a portion of your income, seek out an investment advisor, and agree to a balanced portfolio that meets your expectations. Why not use the same approach for your charitable donations? Set aside a portion of your income for charitable donations, seek out a community foundation advisor, and determine a balanced portfolio that meets your expectations. A balanced portfolio might include donating a portion to organizations you know, such as your church or YMCA, as well as a portion for community organizations you don’t know. For example, you may want to create an endowed fund that will provide a cash return for a specific organization of your choice every year, or a fund that has a specific focus, such as support for start-up businesses, housing solutions, air and water quality programs, or programs addressing youth mental health issues. The options for improved community quality of life are endless especially under the guidance of foundation staff who know when, where, and how to get the best return on your investment.
At a strategic level, the Grand Traverse Regional Community Foundation, like so many others, excels at convening and enabling community stakeholders to encourage critical thinking and innovative solutions relating to intractable issues, such as homelessness and affordable housing. During the pandemic, the Community Foundation created an Urgent Needs Fund that met unanticipated community quality of life challenges and opportunities created by the pandemic. From that experience, the Community Foundation put its effort into a collection of funds called Community Funds that help to address pressing needs in our region. In focusing on these flexible, responsive funds, the Community Foundation aimed to bring its grantmaking portfolio into better balance since 97% of the organization’s current grants have a specific purpose. The Community Foundation wants and needs to have the ability to fund gaps in spending and take advantage of unexplored opportunities. Examples include: supporting new housing developments, funding accessibility updates at local institutions, providing general operating support to a multi-generational-serving organization, and supporting ecological restoration efforts, among other important efforts, programs, and causes.
In closing, let me amend my earlier statement about what community foundations do: Community foundations invest the money of community members to convene and enable local organizations that have impact and a passion for creating healthy, resilient, and thriving communities. I can’t imagine a better return on an investment! It is why those of us at the Grand Traverse Regional Community Foundation do what we do!
About the Author
Jerry Ring, Chair of the Grand Traverse Regional Community Foundation’s Board of Directors, is the former Director of Global Contributions and Community Programs for The Dow Chemical Company where he developed a passion for cross-sector collaboration and solutions in addressing community quality of life issues.