Community foundations are grantmaking public charities that mobilize the assets of past and current donors to improve quality of life and economic stability for residents in defined geographic areas. Affordable housing is a key factor in achieving these objectives, as it provides stability for families, supports workforce retention, and enhances overall individual and community well-being. Notably, workers who are forced to move due to housing insecurity are 22% more likely to lose their jobs within a year, and numerous studies demonstrate connections between high household housing cost burdens and poor health outcomes.

As the costs of land, construction, financing, and maintenance have increased in recent years, projects that build or preserve affordable housing increasingly need additional low-cost capital to be financially feasible. This is particularly true for projects that target affordability for households falling significantly below Area Median Incomes (AMI), such as those targeting households earning less than 80% AMI. In a growing number of higher cost markets, subsidies are needed for projects with rents targeted for affordability at or even slightly above median income (up to 120% AMI).

Recognizing this reality, many community foundations and other place-based philanthropic organizations that emphasize economic mobility and quality of life are increasingly interested in supporting affordable housing and housing production. This includes not only direct grantmaking to nonprofit organizations that develop housing or provide housing counseling and related services but also raising and managing impact investment funds that directly support for-sale or rental housing projects. Additionally, some local funders engage with policymakers, the private sector, and other philanthropic organizations to assess, develop, and manage new collaborative programs that address gaps in local housing ecosystems.

There are over 900 community foundations currently operating in the U.S., the majority of which focus on a regional (metropolitan area or similar) footprint, with others also operating at a statewide level. Many place-based private philanthropic organizations play similar roles in their communities, such as The James Irvine Foundation in California and the George Kaiser Family Foundation in Tulsa, greatly expanding the pool of potential organizations that could serve as conveners and funders. Yet much of this potential remains untapped: a 2024 study found that U.S. philanthropic organizations hold total endowment assets valued at over $1.1 trillion, though only 5% of philanthropic foundations invest any of their endowments for impact.