Community foundations are nonprofit organizations that manage and distribute funds to support local initiatives and projects. They pool donations from individuals, families, and businesses to create a permanent endowment, which generates income for grants. These foundations focus on addressing specific needs within a community, such as education, health, and the arts. Typically governed by a board of local leaders, community foundations work closely with donors to align their philanthropic goals with community priorities. They often collaborate with other organizations and agencies to maximize their impact, ensuring that resources are effectively allocated to improve the quality of life for residents in the area.