Departure station: origin and context
Community foundations are emerging in Portugal from locally-rooted philanthropic institutions competent in responding to pressing needs, through the practice of place-based philanthropy. The country, while looking good from the outside, faces significant challenges, including political instability, a housing crisis, poverty, and issues within the education system. Furthermore, there is not a culture of charitable giving – Portugal ranks 112 of 114 in the World Giving Index.
Unlike in some countries, where community foundations are established from the outset with a clear mission and defined characteristics, in Portugal, community foundations have originated from diverse initiatives and actors. Nevertheless, they display key traits such as their proximity, local knowledge, trust and broad-based governance, in order to deploy resources through their own activities and place-based grantmaking. This ‘pre-existing’ condition may, in fact, be viewed as an asset: the credibility and trust already built provide a valuable starting point for these foundations to fully embrace the spirit and potential of community philanthropy.
The number of foundations identified in recent years as community foundations is estimated to be between 30 and 50. However, there is currently no official national database. The Portuguese Foundation Centre (CPF), which represents the foundation sector in Portugal, is seeking to partner with a university to address this gap and map the field more comprehensively. CPF plays an important role in nurturing the sector. It has been working closely with ECFI, and has learnt much from the field, in order to unlock the potential of community foundations in Portugal. It has established a working group within the Centre and supported initiatives such as giving circles, convening national events, and fostering partnerships with platforms like The Funding Network.
How Portuguese community foundations operate: engineering the system
Portuguese community foundations are distinct in their diversity, strong territorial anchoring, and commitment to addressing local priorities. The compulsory minimum endowment for foundation establishment according to Portuguese law is 250,000€. This places a significant obstacle for new grass-roots initiatives, so the approach has been to work with existing ‘community foundation-like foundations’.
Overall, they relate to the 5Cs of infrastructure organisations – offering Credibility, Connections, Capacity, Capability, and acting as a Catalyst.
Key features that align with the other European community foundations include:
Place-based focus: knowledge of and ability to respond directly to complex and interdependent community-identified needs
Flexibility and hybridity: blending direct activities with financial support and community development activities
Stakeholder engagement: deepening connections with the local communities and building bridges between different sectors and social actors (as donors and beneficiaries)
Future challenges and stations ahead
So, while the community foundation field exists, it is only now being uncovered, connected and supported. The identity of ‘community foundation’ is recognised as being desirable by existing place-based foundations. CPF recognises that ‘being a community foundation matters’ and that there is sufficient critical mass to build a movement in Portugal. There is however a need for collaboration and collective development, in order to share knowledge, learning and experience. As the identity of community foundations — and the wider movement — is being shaped from the ground up, CPF has identified key next steps to support its evolution:
- Organising national convenings, such as the forthcoming event on 12–13 June in Portugal
- Launching the country’s first giving circle
- Expanding partnerships and investing in fund development
- Strengthening connections between CPF and its members and wider European and global networks
Find more about the Portuguese community philanthropy field here: https://cpf.org.pt/
