This form of organization provides a vehicle through which major improvements can be funded and through which resources can be assembled for development specific to the community information network and its purpose and vision. Such an organization offers the advantage of raising capital within the community through non-returnable contributions from its members. The donations are tax deductible. The non-profit educational entity can also provide a mechanism for cooperation. The incorporation process is relatively simple and requires only the filing of an application with the state and paying a minimal filing charge.
Community foundations are one means that can be used to support community information networks.
A community foundation is essentially a grassroots community organization whose membership is open to all residents. It usually represents the broad interests of the community and is governed by a board of directors elected from the membership at large. Most funding is grassroots generated. Some foundations determine membership by payment of dues, with a differential rate for youth and adults. This type of organization provides flexibility for a community and allows project determination and prioritization by the members.