The surprising thing is not the disparities between community foundations and alternative funds. Given the huge differential in foundation investment, that is to be expected. The surprise is that community foundation grants and alternative fund distributions on an individual foundation or fund basis are not nearly as disparate as the totals above would suggest. It is certainly true that alternative funds fit the rationale that was used to justify the support for community foundations. It can accumulate unparalleled knowledge of local problems, existing programs, needed services, indigenous leadership and prospective donors.
Luck feels that the primary purpose of the community foundation is inherently chameleon-like.
Well, we see ourselves as a vehicle for small donors to carry their trust into the future. We have over 900 donor restricted funds. Sometimes we find ourselves funding both sides of an issue. Community foundations, by being controlled by donor-chosen programmatic areas, tend to be more temporal and service oriented. The big foundations' substantial investment in community foundations is paying off in more ways than simply producing substantial revenue in 1997.