Town-Specific Funds: How They Work, and an Example in Massachusetts

Photo: Jay Yuan/shutterstock

Photo: Jay Yuan/shutterstock

Local grantmakers tend to focus their dollars on a region of the country, a single state or a few specific counties. But some community foundations administer town-specific funds that keep an even tighter rein on where grants go. One example of this is the Falmouth Fund, a town-specific fund that is part of the Cape Cod Foundation.

Town fund governance

Most town funds are fairly small and have only limited funds and capacity. Therefore, they often rely on big community foundations in the area to help everything come together. For example, the Cape Cod Foundation provides the Falmouth Fund with resources including investment and management services, marketing help, grantmaking support and administrative support.

However, the Falmouth Fund has its own advisory and grantmaking committees that actually decide which opportunities to support. Town residents serve on these committees, while the community foundation fulfills the role of an advisor and resource.

Where funds come from

The Falmouth Fund and other town funds are permanent endowments that grow over time and are meant to support the community into the future. Local residents who do not care to set up their own private family foundations can donate to the town fund and help local organizations by sustaining its yearly grantmaking.

Recently, the Willett Foundation Fund gave $125,000 to the Falmouth Fund, with $25,000 dedicated to direct support grants and the remaining $100,000 for a matching gift challenge. Matching gifts are a common way for town funds to continue their growth and gain support from other local people who might not otherwise engage in philanthropy on a regular basis.

Types of organizations supported

Many town funds, including the Falmouth Fund, have broad topical interests and support many different causes as long as they serve the town in question. Common topics of interest are health, human services, arts and culture, education and the environment. Over the years, the town fund in Falmouth has supported shelters, health centers, mentoring programs and food pantries. It has also provided equipment and programs to vulnerable local residents, such as people with disabilities, seniors and women in transition.

The Falmouth Fund’s other interests include historical preservation, protecting open green spaces, film festivals, playgrounds for children and theatrical performances. In response to the COVID-19 pandemic, the fund also made financial commitments to provide food and financial assistance through the Falmouth Service Center.

Between 2010 and 2020, the fund awarded over $700,000 to at least 82 nonprofit groups. The bulk of these grants went to health and human services organizations, followed by education, youth and recreation. Recent grantees include Calmer Choice, College Light Opera Company and Amazing Grace of Cape Cod.

The application process

At certain times of the year, the Falmouth Fund seeks grant proposals and sets a deadline for new grant applications. Before that deadline, it typically hosts a grant writing workshop to inform grantseekers about changes to the process and provide application tips. The grant process is entirely online, and staff members are available by email to answer any questions.

You can learn more about the Falmouth Fund, as well as other local givers who work in the Cape Cod region, by checking out IP’s Boston and New England funding guide.