philanthropy.com 18 Dec, 2020 19:30 am

Community Foundations Wrestle Over Whether to Accept Government Help

Community Foundations Wrestle Over Whether to Accept Government Help
With Congress negotiating a renewal of the Paycheck Protection Program, debate may rise anew within community foundation over whether their pursuit of the loans would siphon funds from service-providing nonprofits.

” A Chronicle analysis of PPP loan data from the Small Business Administration identified more than 400 community foundations that received loans, worth roughly $52.ADVERTISEMENT However, philanthropy experts said community foundations, which channel gifts from a wide variety of donors both wealthy and not wealthy, were a different story.Nonprofit consultant Al Cantor, who has criticized family foundations for securing PPP loans, said community foundations have a stronger case for needing loan assistance — even those with considerable assets.If community foundations had to use their assets to avoid staff reductions during tough times, it would divert money from charities in their communities with immediate needs, Cantor wrote in an email.

“It wasn’t an easy conversation in the community foundations.“A good number of community foundations are small themselves — two-thirds of them have endowments of less than $100 million, and their operating budgets don’t look too much different from the groups they serve,” Macklin said.

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