National Accountability  Standards 

for Community Foundations

 

 

Why National Standards are Important for Community Foundations

U.S. community foundations serve tens of thousands of donors, administer more than $31 billion in charitable funds, and address core concerns of more than 650 communities and regions. There are many reasons that standards are important for both established and new community foundations.

Below are just a few.

1. Standards Guide Sound Policies and Accountable Practices

· Community foundations of all sizes use standards as a roadmap to establish legal, ethical, and effective practices that are ready for the increasing scrutiny of donors, government and the press.

· The very largest community foundations – now rivaling the largest private foundations in size – use standards to publicly communicate the ir commitment to accountability, excellence, and service.

· The smallest and youngest community foundations – more than 400 have formed in the past two decades – use standards to certify their achievement of comprehensive basic services that mark a true “community foundation.”

2. Standards Distinguish the Field from Others

· Community foundations use standards both locally and nationally to distinguish themselves from others in a more competitive marketplace in which many entities offer traditional community foundation services, such as donor-advised funds.

· Community foundations use standards to establish the highest levels of ethical and operational integrity, helping separate themselves from the potential wrongdoing or mistakes of other entities.

· Community foundations use standards to promote self-regulation in a manner viewed positively by the Internal Revenue Service, which has increased its scrutiny of charities offering donor-advised funds.

· Community foundation standards help reduce the risk of joint marketing by ensuring that all participating community foundations have met certain consistent standards for service and operations.

3. Standards Build the Capacity of Community Foundations to Carry Out Their Missions

· Standards provide a template for training and technical assistance that can be used to efficiently transmit both established and emerging practices.

· Standards provide a framework within which community foundation practices can be systematically documented and communicated.

· Standards provide a set of consistent expectations that save time and focus energies for community foundation boards and staff.

 

The Lubbock Area Foundation has been recognized by the Council on Foundations for having organizational and financial practices that are in accordance with the National Standards for U.S. Community Foundations. 

 

Developed by the Council on Foundations and leaders in the community foundation field, the National Standards assist community foundations in establishing legal, ethical and effective operational practices that support the foundations’ transparency and financial responsibility in light of the increased public scrutiny of foundation practices.  Compliance with the National Standards distinguishes community foundations from other philanthropic vehicles, builds the capacity of community foundations to carry out their missions, and assists with self-regulation in a manner viewed positively by the Internal Revenue Service.

 

Adopting and adhering to high standards is the best way we can demonstrate our ongoing commitment to maintaining the trust of our donors and the entire community.  We are committed to reaffirming the honesty and integrity that are a hallmark of our foundation.

 

U.S. community foundations serve tens of thousands of donors and administer more than $39 billion in charitable funds.  Of the nearly 700 community foundations in the United States , over 500 have pledged to comply with the National Standards. These community foundations represent foundations from across the nation and the size of their assets range from the smallest to the largest in the field. Currently, compliant foundations represent over $9 billion in assets, or about 28% of the field.

 

 

The Council on Foundations is a Washington, DC-based nonprofit membership association of more than 2,000 grantmaking foundations and corporations. The Council provides the opportunity, leadership and tools needed by philanthropic organizations to expand, enhance and sustain their ability to advance the common good. For more information on the Council, visit the organization’s website at www.cof.org.

 

 

About Us • Opportunities for Donors • Grants & Scholarships • Foundation Initiatives • The Professional Advisor & Charitable Giving