Just like it sounds, a community fund is a pool of money dedicated to benefiting a particular place.

Community Funds are typically held by a community foundation. In community foundation language, they are considered “place-based, field-of-interest” funds. The money is restricted to a defined geographical area to support that place in ways that the community decides is best for them.

While the funds can’t go to individuals or for-profit organizations, there is lots of flexibility in where they can be put to work, including nonprofit groups, such as a food bank, church, or arts organization, and other community assets like libraries or parks.