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Community foundations vs private foundations
A community foundation exists to fund one place. In IRS filings, the median one made 91% of its grants in its own state. For a small nonprofit that works locally, it is often one of the most likely foundation funders, but its tax return reads differently from a private foundation's.
Published 2026-10-14 · IRS rules checked against IRS publications and forms on 2026-10-14 · figures queried 2026-10-14 from IRS e-file data
How they differ
| Community foundation | Private foundation | |
|---|---|---|
| Tax status | Public charity | Private foundation |
| Annual return | Form 990 | Form 990-PF |
| Grants listed by name | Recipients of more than $5,000 | Every grant paid |
| Minimum annual payout | The private-foundation rule does not apply | About 5% of investment assets |
| Who picks grantees | Its staff, committees and board, plus donors advising their funds | Its board or trustees |
| Share of grants in home state (median) | 91% | 58% |
The IRS treats a community foundation as a publicly supported charity: it has to raise a meaningful share of its support from the public. A private foundation usually has one source of money and has to pay out a minimum each year, starting from 5% of its investment assets. That rule is part of the private-foundation rules and doesn't apply to public charities.
Home-state shares: by number of grants, tax years 2022 on, funders with at least ten grants (775 community foundations, 47,464 private foundations).
How many there are, and how big
The IRS list of tax-exempt organizations codes 4,136 organizations as community foundations. 1,263 of them file a Form 990 that lists grants. Most are small: about half gave less than $1 million in their latest year.
| Grants per year | Community foundations |
|---|---|
| Under $1 million | 596 |
| $1 million to $10 million | 372 |
| $10 million to $100 million | 157 |
| Over $100 million | 30 |
1,155 community foundations with figures for their latest year, mostly 2024. Counts only grants listed on Schedule I, so smaller grants are left out. Another 260 organizations coded as community foundations file a 990-PF; they are private foundations using the name.
They give close to home
The median community foundation made 91% of its grants in its own state, and 54% of them made 90% or more there. The median share going to organizations in the foundation's own city was 41%, and that undercounts, because a suburb with a different name doesn't match.
So a community foundation outside your region is rarely worth an application, and the one that covers your county almost always is worth a look.
Reading a community foundation's 990
- Schedule I skips small grants. It names only recipients that got more than $5,000 in the year. A community foundation that makes many $2,500 grants will look like it doesn't make any.
- Many grants were advised by donors. Many community foundations hold donor-advised funds, and grants from those funds are listed on Schedule I with nothing marking them. Schedule D, Part I, line 3 gives the year's total granted from donor-advised funds. Compare it with total grants to see how much of the list came from donors' recommendations rather than the foundation's own grant programs.
- Compare grant sizes carefully. Because small grants are missing, a community foundation's median listed grant looks high. Counting only grants over $5,000 on both kinds of return, the median community foundation grant in 2023 was $17,900 and the median private foundation grant was $25,000.
How to approach one
- Start with its website, not its 990. Open grant programs, with eligibility and deadlines, are often published there. That is the foundation's own money, and the part you can apply for.
- Talk to program staff before applying. If it has them, a short call about fit saves a full application that was never going to work.
- Treat donor-advised grants as relationships. You can't apply to a donor-advised fund. Those grants follow a donor's own interests, and the way in is usually through people who already know the donor.
- Check the neighbouring ones. Some regions have more than one community foundation with overlapping areas, and some foundations have affiliate funds for single towns or counties.
Frequently asked
What is the difference between a community foundation and a private foundation?
A community foundation is a public charity that pools gifts from many donors to support a city, county or region. A private foundation is usually funded by one family, person or company. Community foundations file Form 990; private foundations file Form 990-PF and must pay out a minimum amount each year.
Are community foundations a good fit for small nonprofits?
Often, if you work in their area. In our data the median community foundation made 91% of its grants in its own state, against 58% for private foundations. Many also publish open grant cycles on their websites.
Why can’t I find small grants on a community foundation’s 990?
Form 990 Schedule I only lists recipients that received more than $5,000 in the year. Smaller grants are not named. A private foundation’s 990-PF lists every grant.
What is a donor-advised fund at a community foundation?
A fund a donor sets up at the foundation and can recommend grants from, while the foundation keeps legal control of the money. Those grants appear on the foundation’s Schedule I with no mark that sets them apart. Schedule D, Part I shows how much was granted from donor-advised funds in total.
Using this page
You're welcome to cite or link this page. Community foundations are identified by the IRS's NTEE code, which can be missing or wrong for some organizations. If a figure looks off, tell us at hello@fundmesa.com.
FundMesa's Find funding add-on labels community foundations and moves the ones that rarely give in your area to the bottom with the reason, instead of hiding them. For the private-foundation side, see how to read a 990-PF.