What is an Affiliate?

Similar to bank branches, affiliate foundations are led by a board of local community leaders. Affiliate foundations make grants and direct fundraising efforts to develop grant making resources in their specified communities or interest areas. The Eau Claire Community Foundation (ECCF) provides investment management, fund accounting, legal advice and administrative staff support for each of its affiliate foundations.

Creating an affiliate foundation under the ECCF umbrella may be a good alternative for donors considering a private foundation. An affiliate foundation is a distinct legal entity affiliated with the Community Foundation. As such, the affiliate foundation qualifies for a tax status not granted to private foundations.

In addition to having its own board of directors, an affiliate foundation can have its own letterhead, checking account and investment manager. It can even publish its own annual report.

For individual donors, affiliate foundations are an excellent way to gain the participation and visibility traditionally associated with a private foundation without the paperwork or overhead. For private foundations concerned about continuity or maintaining their impact, affiliate foundations provide a simple, cost-effective way to ensure that the mission is not eroded by time and overhead.