February 15, 2008 | Read Time: 1 minute
Community foundations risk being eclipsed by Fidelity and other companies’ donor-advised funds as vehicles for helping donors give away their money, writes Phil Cubeta on Gift Hub.
Mr. Cubeta, an adviser to the wealthy, says he was recently contacted by a community foundation in Dallas that had been asked by a donor for help on thinking through values, vision and finances. “The community foundation is nonplussed since they are not staffed for that role,” he says.
Continues Mr. Cubeta: “Unless community foundations add more more value, and emphasize relationships, local presence, and ideals, they will find Fidelity and other financial intermediaries tough competition.”
Jeff Trexler, professor of social entrepreneurship at Pace University, writing on Uncivilsociety.org, agrees. “The philanthropic landscape has evolved in ways that many community foundations — indeed, many charities — have yet to grasp,” he says. “If a charity is to compete, its value-added lies in being both more effective and transcendent. A difficult and delicate task, to be sure, but one we ignore to our peril.”
What do you think? Do community foundations need to adapt? And how?
