What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
Giving Compass' Take:
• This report from the Community Strategies Group at the Aspen Institute offers a starting point for local foundations that want to attract enduring capital to rural communities.
• How can you support equitable rural economic development?
• Read about the role of CDFIs in supporting rural economies.
The Field Perspectives in this brief offer a call to action to restructure and reorient public, private and philanthropic capital in ways that increase their impact across rural America. The challenge? Put in place the infrastructure and systems that will ensure ready and adequate flows of financial capital that is reliably available, easily accessible and affordable, and consistently, strategically and equitably invested to address needs and create opportunities in rural communities and economies.
Broken systems coupled with misguided and discriminatory policies and practices have led to massive disinvestment and decline in many rural regions and Native nations in the United States. Despite that, there is a wealth of talent, innovation and determination in our small towns, rural regions and government and private systems upon which we can build a more fair and prosperous future. Together, seven seasoned rural development practitioners and experts provide insights in this brief about what it will take to structure and direct capital to where it is most needed in rural America – and offer examples where transformation is already in progress.
The topic of capital formation and investment in rural America is complex and multifaceted. This brief makes no claims of being comprehensive or in any way definitive. It is intended to provide starting points for productive discussion and lead to informed decision-making and action that meets the challenge.
TRANSFORMATION IN PROGRESS: RURAL-ROOTED PHILANTHROPY IN THE COMMUNITY CAPITAL SYSTEM
Achieving a vision of equitable, prosperous and sustainable rural communities will require philanthropic partners that place a priority on investing directly in community change over (or at least equal to) their charitable grantmaking. Community foundations and other place-rooted philanthropy (like family and health legacy foundations) must shift from a primary focus on accumulating assets to one that, through an inclusive process, leverages assets they already control to address the most critical community opportunities and challenges – for example, accessible and affordable broadband, housing, entrepreneurship, childcare and health care, among others. Few other rooted institutions have the mission-imperative and asset base to become a true force for local change. And that change is needed now more than ever.
In many ways, the field of community philanthropy has been moving in this direction. In response to a visionary and pivotal 2005 study about the future of community foundations,34 many in the field have slowly but surely begun to refocus and revamp to take on a “community leadership” role that emphasizes partnering to pursue a community’s greatest opportunities and address its most critical challenges.