There's an opportunity for everyone to participate. A community foundation pools donations and puts them in the hands of professional money managers. On paper, however, the assets are kept separate in endowment funds. Donors may designate which charitable organizations receive grants from their fund. They can also choose to put their money into an unrestricted fund that the foundation directs.
Charities receive grants based on applications, or donor initiatives.
The total value of grants varies, but is roughly 4.5 per cent of the foundation's capital from the year before. This enables the funds to give in perpetuity. Gifts to community foundations tend to be in the form of assets, not donations made from income. Some foundations have a minimum donation limit, others do not. The Saint John Foundation in New Brunswick, for example, will accept donations of any size into its community, or unrestricted, fund.