Community vs. Independent Foundation

[jpbcologne]

Could somebody explain the difference in purpose between community and independent foundations?
Independent foundations’ purpose is defined as: grants to charities, educational institutions and social organisations
Community foundations’ purpose: funds social, educational, religious purposes
Is there any fundamental difference in the purpose?
Thank you in advance!

 

[harryy02]

Emphatically NO!
Their main dinstinction comes from their sources of funding and then their minimum spending requirements. Refer to the cfa material. community found is publicly funded whilst independent/private found is individually funded by family or friends. moreover independent is required of a 5% min spending rate whilst community has no specific spending requirements. Also i think private foundation is taxed whiled community is not taxed on income generated. But they both serve same purpose basically.
these are the main distinction parameters. the purposes of establishment comes in with respect to company-sponsored and operating foundations.
Note these factors well. absolutely key for u on exam day!

 

[jpbcologne]

How would classify university endowment without being given further details?
By the logic above, it can be either independent or community.