In the pursuit of truly radical transformation, community foundations are essential. Institutional philanthropy overlooks this to their own loss.

In the ongoing global conversation about the future of philanthropy, two recent publications offer essential insights. The first, ‘Not just philanthropy middlemen: The unseen role of intermediaries’, published in Alliance, highlights the role of philanthropic intermediaries as agile and essential actors between major funders and grassroots organisations. The second, ‘Light in times of darkness: Community philanthropy offers a way forward’, published by Global Fund for Community Foundations, reaffirms the value of community philanthropy as an ethical practice grounded in trust, reciprocity, and commitment.

Both perspectives emphasise the need for philanthropy to become more inclusive, equitable, and adaptable. Yet something vital remains unspoken: the need to centre those who not only engage with local communities but who live in, remain within, and transform them from the inside out. This is where Community Foundations (CFs) come into sharp focus.

Transformational Rather Than Transactional

Community foundations in countries like the United States, Canada, and the United Kingdom have often been stereotyped as being more transactional, focusing more on building assets and catering to the desires of wealthy donors. But this has shifted over the past 20 years, particularly with the promotion of the practice of community leadership. In Latin America, community foundations are positioning themselves as transformational actors leading long-term, systemic processes.

In recent years, we have witnessed a sustained strengthening of community foundations across Ibero-America (Mexico, Costa Rica, Peru, Colombia, Brazil, Chile, Spain, Portugal, and more recently, Argentina), where a common pattern has become evident. These foundations serve as catalysts for social fabric, connectors of multiple stakeholders, and builders of trust in deeply diverse contexts.

Moreover, national-level support organisations for community foundations have emerged across the region, playing a crucial role as enablers and amplifiers. These include Comunalia in Mexico; Costa Rica por Siempre in Costa Rica; Comuna Nación in Peru; Territoria in Colombia; Instituto para o Desenvolvimento do Investimento Social (IDIS) in Brazil; Coterráneos program by Comunidad de Organizaciones Solidarias (COS) in Chile; Asociación Española de Fundaciones (AEF) in Spain, Centro Português de Fundações (Portugal); and Laboratorio Público-Privado in Argentina, created by Red de Innovación Local and Grupo de Fundaciones y Empresas. These support organisations function as ‘potentialisers’, connecting international and national actors to local community foundations and reinforcing systemic territorial philanthropic ecosystems.

Read the full article about why community foundations matter by Agustín Landa at Alliance Magazine.