CONTENTS

PAGE Introduction.. What is a Community Foundation?..... Key Features of a Community Foundation.. The Community Foundation as a Development Option. Ten -Point Guide to Organizing a Community Foundation. Benefits of Giving to a Community Foundation... FAQs.... Annexes.... References.... 3 6 7 8 9 12 13 14-15 16

introduction
Foundations are commonly set up to manage funds from a single or multiple donors to fulfill charitable and/or development objectives. In the Philippines, foundations fall under the large umbrella of non-government organizations (NGOs), and include both grantmakers and direct implementers. Foundations that limit their work to specific provinces are usually engaged in direct project implementation. They are also usually established with funds from a major source, beefed up by funds from donors or internally generated funds. Community foundations are private, non-profit institutions that found their origin largely in the United States, Canada and the United Kingdom. While community foundations have been defined in different ways, the following attributes comprise its key characteristics: They operate within a defined geographic area, but are not limited to one field or to one segment of the local population. The governing body tries to be representative of the community it serves. As such, a multi-stakeholder perspective is necessary. There is usually an active attempt to generate funds from community members (local resource mobilization), without discounting the generation of funding support from sources external to the community. They pool the charitable gifts of many donors into permanent, income-earning endowment funds that benefit local communities. They make grants mainly from the earnings of these funds to support a wide range of local initiatives. They can also play a linking role, i.e., matching needs with possible sources. They are primarily grant-making organizations. Some organizations also extend loans to spur the local economy. However, while not directly implementing projects, they provide other services to the communities such as training, mobilization of funding support from community members and bringing people together from all sectors to identify and address local issues.

Different community foundation models can be found all over the world. The concept has been applied and adapted in developing countries across Africa, Latin America and Eastern Europe. The belief is that members of a community can collectively create and own an institution that will raise resources and channel these to support self-help initiatives within the locality. While the Philippines boasts of a lot of practices related to social development, little has been done in the area of developing community foundations as a potential mechanism to consolidate efforts at local poverty alleviation.

In the context of Philippine civil society, community foundations can be one type of mechanism to facilitate the re-flow of wealth back to the community. Part of this wealth must be raised or drawn from the community members themselves. An assessment of the flows of wealth, both those present in the community (private resources, cooperative funds, national resources, government budgets) as well as outside (overseas communities, investments or grants from donors), needs to be undertaken to determine the best approach. A number of mechanisms can be adopted to re-flow wealth. Rural banks are one, in the form of social investments or loans, while community foundations can focus on promoting the delivery of services. The need to strengthen the fund-raising and grant-making functions within the Philippine NGO community is becoming critical due to decreasing resources from the international donor community. Having primarily grant-making institutions will ensure that the function of fund-raising becomes the focus of an organization, leaving the task of implementation to other NGOs. The Philippine NGO community will also have to consider that individual donors would have more appreciation for giving to local communities (particularly hometowns) than to national NGOs. Community foundations will then be a strategic mechanism for promoting local philanthropy, as donors will clearly perceive them to have more proximity to local problems and to finding solutions to such problems. The past decade has seen the strengthening of national NGOs. Yet clearly, the thrust of decentralization pushes local institutions to handle more and more of the issues themselves. In the face of dwindling resources, relationships should be reframed to provide for greater resource allocation to local institutions that are at the frontline of service delivery. The community foundation concept provides one type of mechanism to ensure that resources will be channeled to local development efforts. Finally, recent political events in the Philippines have called for a campaign for new politics that will equip young leaders with the vision and skills to serve their communities in whatever sector they may be. More and more, the call now is for NGOs to engage with government and business. Community foundations, with their goal of bringing various sectors together, can serve as an opportunity for young leaders to learn the importance of engagement with various sectors, and in the process, contribute to the development of a new culture in politics. Some of the challenges to the establishment of community foundations in the Philippines include: Diagnosis of the situation and needs per area to determine the appropriate detailed design of the foundation. Educating community members on the objectives, building and management of a community foundation.

Facilitating the setting up of the community foundation, including the design of systems, conduct of stakeholder planning workshops, and resource mobilization. Installation of clear governing bodies, formulation of strategic plans, systems design and development, generation of seed funds, and development of an initial portfolio of loans and grants. Assisting the foundation in its infant years, through technical assistance in management; information, education and communication/promotion; and continued resource mobilization. Attaining a level of self-sufficiency in resource generation activities and fund and organizational management.

Hopefully, the succeeding pages will assist us in more clearly defining/characterizing the concept of a community foundation and how it can spur more equitable and sustainable development in our areas of operation.

what is a community foundation?

A community foundation (CF) is a private, non-profit organization, which mobilizes local resources for grant giving in a defined geographic area. A CF aims to improve the quality of life in a particular community by addressing its diverse and changing needs in a participative manner --- building community spirit and strengthening community leadership as local citizens come together to solve problems and create a common vision for the future.

key features of a community foundation

A community foundation is distinct because of the following features. It serves a defined geographic area such as a barangay, city, municipality, province, or region. Important to consider in defining the locus of operation would be that the area must have the potential for effective resource generation and that the coverage will not be too large that will make it difficult for you to manage the needs and problems efficiently. The CFs name and all legal and public relations materials indicate the geographic area of service. It is governed by the local residents, who reflect the varied interests of the people in the community. Because the CF is borne out of a local initiative, its governance is characterized by being participatory, transparent, independent of control by any one sector in the community and with a committed leadership that is accountable to its donors and the community it serves. A CF has a board of directors, usually assisted by committees, that sets policy and program directions, and is administered by a core of volunteers and paid staff. A CF promotes a culture of philanthropy or local giving. It can build on the intrinsic value of the Filipino --- the bayanihan spirit. The desire to help, no matter how seemingly small, can fuel the growth of a CF. Promoting the culture of giving in a community is key to resource generation beyond program operations and towards building long-term assets. It is the local residents in the community who mainly support a CF. They may be individuals, families, companies/corporations, other foundations or local government agencies. While fund generation is primarily from within the community, there is no stopping a CF if it can effectively leverage resources from outside the community, as in former residents who want to help their hometown. Local resource mobilization is also directed at building an endowment fund to ensure the long-term response to the communitys changing needs. A CF is a grant making institution. It must have clear and facilitative guidelines for grant giving and be able to regularly update its donors on the use of their donations. Lastly, a CF is a vehicle for community building. It helps instill a new-found and vibrant community spirit that can bring about change. The movers and leaders are the residents themselves, hence it is a movement by and for the community.

the community foundation as a development option

A CF can be an agent of development because it. 1. Provides an alternative to addressing the development needs of a community. By specializing on local resource mobilization for grant giving, a CF does not compete with existing NGOs that do implementing work. 2. Builds a communitys dignity and self-reliance in a creative, locally sensitive and participatory manner. Because a CF is organized with the participation of a diversity of actors and sectors in the community, the members of the community can feel represented in an entity that is private, autonomous, independent, and which they can trust. 3. Contributes to cultural change since : It encourages participation and networking Operates in a professional way Connects donors with beneficiaries with relative ease Promotes the values of generosity, transparency, and honesty Serves as a forum for dialogue, interaction, training and education for the citizens of a community It facilitates solutions to immediate or long-term problems 4. Is a paradigm shift from total dependence on government to taking responsibility for addressing a communitys needs 5. Can be a sustainability mechanism for development projects, allowing for the community to manage funds and other resources intended for development work. 6. Is envisioned for long-term sustainability. This is the very reason for its endowment fund - so that it can respond to the long-term needs of the community. 7. Helps breed a new generation of leaders who are able to mobilize and leverage all kinds of resources within and even outside the community towards a development goal.

ten-point guide to organizing a community foundation

1. Find out if there is a CF operating in your community. It would be ideal to have just one CF serving one geographic area so that the resources will not be spread too thinly among many CFs, which would have the same ultimate goal of development for a community. If there is no CF in your community, you can proceed with the other considerations in organizing a CF. 2. Make an extensive assessment together with key people in the community. Find out if there are enough financial, human, and other resources in the community needed to operate a CF successfully. Answering the following questions might help: What are the specific development needs / issues that can be addressed by forming a CF? (what are the needs of your ultimate beneficiaries?) Are there enough sources of wealth to guarantee the long-term survival of the organization? (what is the local resource generation potential in the area?) Is there a strong sense of community spirit that can fuel the CF? (can you count on the potential stakeholders to participate actively?) Are there enough community leaders or influentials who can contribute to the task of organizing, securing funding, and sustaining the foundation? (are there enough volunteers with expertise to govern and manage the CF?) 3. Convene a core group that will steer the CF through its formative stage. Initially the core group will have to map out the following: A common vision for community Needs that have to be addressed immediately and for the long-term Resources available in the community Potential leaders and volunteers who are willing to put up a stake in the CF Legal, infrastructure, and administrative requirements for the CF It is equally important at this early stage of a CF to engage the services of a fulltime person to ensure a CFs unhampered progress.

4. Formalize the CF. Invite members and board of directors who will , as a gesture of commitment, be willing to contribute to the CFs fund Hire full-time / part-time staff who will see to the day-to-day operations of the CF Conduct strategic planning sessions ( vision, mission, short-term and longterm goals, strategies, core values) Set administrative/ governance policies Register with the SEC Form committees The following committees may be helpful. Resources Committee takes the lead in generating and mobilizing resources for grant giving and operations Administrative committee plans, organizes, directs, controls and implements foundation operations Communication and information committee in charge of projecting the image of the CF, informing the public about the CF activities, and positioning the CF in the various sectors of the community Investment committee invests the endowment funds according to established guidelines Grant making committee makes decisions regarding how the resources obtained and profits earned from endowment will be used Other committees may be formed depending on the composition and policy directions of the board. 5. Conduct operations planning sessions. Develop a marketing plan for the CF Design fund development strategies Establish grant making policies, systems, procedures 6. Conduct an information campaign on the CF in the community. The purpose is to make your presence felt in the community and generate public interest to donate or get involved in volunteer work. 7. Launch resource mobilization activities. Local resource generation should be an ongoing activity, to match the needs and priorities in the area in a given time. 8. Give grants. A grant giving system must be in place and regularly assesses for effectiveness.

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9. Monitor the grants. As in any project, the ultimate goal is success. Monitoring helps ensure this goal. 10. Give feedback to donors. This keeps open lines of communication between the CF and its donors, serves to interest donors to give more, and is in accord with the CF values of transparency and accountability.

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benefits of giving to a community foundation

1. You are making a local impact. Giving to a CF means you are giving locally and making a lasting impact for a cause you care about most. It makes giving convenient, cost-effective, and simple. 2. You can fulfill your corporate social responsibility (CSR ) function through a CF. A CF can facilitate corporate giving in the context of CSR. Instead of spending for the administrative component of implementing its CSR function, a company can simply give to the local CF and the company can be assured that its donation will be managed professionally. 3. You can be an active donor. A donor knows where the donation is going, is involved in decision-making and is able to see tangible results locally. 4. You are sure your money goes where it is most needed. Because a CF affords enough flexibility in the use of its assets, it is able to seek out the best use of its resources according to the communitys needs. 5. You are contributing to nation-building. Supporting a CF means you are playing a role in building local leadership, which redounds to a strengthening of local communities towards nation-building. A CF can be an avenue for kindling a sense of nationhood. The opportunity afforded by the CF movement for strengthening many communities can contribute to building a strong nation. 6. You are giving hope. The chance for a better life unfolding in your own locality lifts up the community spirit and builds hope in the residents of that community.

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FAQs
1. How many CFs are there worldwide? Today, there are about 650 CFs in the U.S. and over 1,100 CFs in 37 countries including Australia, Germany, Italy, Poland, Russia, Mexico, the U.K. and South Africa. 2. How is a CF different from a private foundation? Funds for a CF are generated from a range of donors in the community. Private foundations source funds from a single source. 3. Are CFs just for rural communities? No, a CF can exist to benefit both urban and rural areas. 4. Can a CF implement projects? A CF is primarily a grant giving institution. However, a CF can engage in project implementation in exceptional cases --in areas where there is a dearth of local NGOs that can implement projects or in areas beset by socioeconomic and political problems, where the CF offers a strong alternative to service delivery. 5. Are donations always in cash? Not necessarily. Donations vary in size and form. They may gifts of cash, trust, bequests, shares or property. Volunteer time is also a form of donation. 6. Are there existing CFs in the Philippines? Yes, there is the Pondong Batangan Community Foundation based in Lipa City, and Ivory Charities Foundation, Inc. based in Butuan City. Please see Annexes I and 2 for the profiles of the two CFs. 7. Who can help me set up a CF? The AF, in particular the CF Committee, can provide assistance in setting up a CF.

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annex 1
PONDONG BATANGAN COMMUNITY FOUNDATION, INC.
Background Pondong Batangan was initially a cooperative foundation which was later reconceived as a community foundation. When Archbishop Gaudencio B. Rosales decided it was high-time to give Pondong Batangan a stature of formality and legality, the Articles of Incorporation and ByLaws were filed at the Security Exchange Commission (SEC) in 1999. Education and formation aimed at deepening the ideals and the practice of Pondong Batangan is a very important part of the program. Focus is given on teaching people about the nature, purpose and methodology of the program, as well as on challenging and motivating them to participate and support the Foundations mission. Membership The incorporators and Board of Trustees of Pondong Batangan are fifteen priests and lay persons. In 2002, three committees were formed in order to facilitate the functioning of Pondong Batangan as a Foundation; Committee on Research and Education, Committee on Membership and Assemblies, and Committee on Screening and Monitoring of Projects. Mechanisms Primers were prepared and seminars were conducted to communicate pertinent information on Pondong Batangan. Homilies during Simbang Gabi were utilized to help spread the practice of Pondong Batangan. The most significant channel of presentation was LAGPAS where delegates from all parishes in the Local Church of Batangas were extensively oriented on the essence, elements and dynamics of Pondong Batangan. Projects Pondong Batangan provides assistance for self-help projects, scholarships, livelihood projects and/or business start-ups. Contact Information: PONDONG BATANGAN COMMUNITY FOUNDATION, INC. Archdiocesan Chancery, Archdiocese of Lipa Cathedral Site, Lipa City, Batangas Tel: (043) 757-3654, 756-2572, 757-3714 Fax: (043) 756-0005 Email: pbcfi99@hotmail.com, mguazon4819@yahoo.com Contact Person: Fr. Manny Guazon, Executive Director

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annex 2
COALITION OF SOCIAL DEVELOPMENT ORGANIZATIONS IN SOUTH COTABATO (CSDO-SC) Background The CSDO-SC is a network of 27 NGOs and POs in the Province of South Cotabato. It was an offshoot of the Local Government Code in 1992 with the primordial aim of unifying resources and efforts of the different NGOs and POs to have an effective lobby of mainstreaming its development agenda. It was registered with the Securities and Exchange Commission (SEC) on July 4, 1994. Membership The CSDO-SC is composed of 27 member-organizations, with 14 NGOs and 13 POs. There are seven members of the Board of Trustees (BOT) elected from the General Assembly through the respective institutional representatives. Moreover, there are two (2) independent trustees to compose the BOT for a wider perspective and participation of different sectors in the locality. Mechanisms The CSDO-SC implements its programs and services through its member and partnerorganizations. To facilitate and put forward wholistic approach through multi-dimensional development of communities, CSDO-SC implements programs through three (3) geographic clusters each having specific focus. Each cluster has a defined development agenda which identifies its program agenda, priorities and expectations. Espousing the principles of complementation of different interventions from and among resource agencies and stakeholders in the area, the CSDO-SC is able to put into action the development agenda for each cluster and for the network as a whole. Programs/Projects CSDO-SC implements programs through the three geographic clusters focusing on environmental regeneration and protection, livelihood and enterprise development, culture and diversity. Cutting across these cluster programs are Women Entrepreneurship and Gender Development (WomEn & GAD) program which provide livelihood assistance to women and capability-building trainings and seminars; and, Localization (Partnership and Access Center) program which provide financial support to micro-enterprise initiatives, agricultural production support facilities, infrastructure facilities, health and literacy centers, and the like. Contact Information Coalition of Social Development Organizations in South Cotabato (CSDO-SC) #4 2/F NDMU Complex, Alunan Avenue, Koronadal City Telefax: (63) 083-2283123 Email: csdo_sc@yahoo.com Contact Persons: Sr. Pacita |G. Babiera, Chairperson, BOT Belen S. Fecundo, Secretary-Treasurer, BOT

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REFERENCES
Documentation Proceedings AF Committee on Community Foundations Discovering the Life and Identity of Community Foundations in the Philippine Setting - A Knowledge-Based Workshop. April 27-28,2004, AIM Conference Center. Sacks,Eleanor W. The Growth of Community Foundations Around the World: An Examination of the Vitality of the Community Foundation Movement. Council on Foundations. 2000. Vivian Blair et al. Community Foundations Exercising Leadership. Mexico City. July 2003. www.cof.org. Community Foundations. www.community-fdn.ca . Starting a Community Foundation. The Community Foundation Difference: Describing What Makes Us Special. Community Foundations of Canada. 2002. Mayer, Steven E. Building Community Capacity: The Potential of Community Foundations. ( Chapter 1) Rainbow Research Inc. Minneapolis. 1994. 2003 Community Foundation Global Status Report. WINGS-CF and Council on Foundations Community Foundations: A Model of Community Resource Mobilization. Manila. www.cfncr.org. How are community foundations different from private foundations? www.communityfoundations.org.uk . Frequently Asked Questions About Community Foundations. www.communityfoundations.org.uk. General Information on Community Foundations. www.philanthropy.org.au. Fast Facts. www.philanthropy.org.au. Your Basic Guide to Establishing A Community Foundation. www.philanthropy.org.au. About Community Foundations.

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