Community foundations are an important type of philanthropic institutions. The world’s first community foundation was established in Cleveland, Ohio, the United States in 1914. Now community foundations are starting to develop in many Chinese cities. This case is derived from Shanghai City. Its municipal party committee and municipal government have driven the development of community foundations by their joint initiative to innovate modes of social governance in its subdistricts. For one thing, these newly developed foundations have effectively integrated a variety of social resources. For another, they have facilitated local communities to effectively govern their challenges in various forms such as philanthropy, public benefit, self-governance, and mutual support.

Two examples should suffice to illustrate how community foundations have contributed to local governance in Shanghai. One is that of Community Foundation of Jiangpulu Subdistrict. It has designed and implemented public benefit projects focusing on five issues: 1) well-being of young people, 2) families with special needs, 3) well-being of seniors, 4) low carbon and environmental protection, and 5) youth entrepreneurship. Noteworthy is that the foundation not only encouraged enterprises in the subdistrict to fund activities pertinent to public benefits of local communities, but also motivated community residents to engage in mutual support. The other example is that of Community Foundation of Yangjing Subdistrict. It has provided services targeting the needs of different age groups (e.g., children, high school students, and seniors). It has also carried out activities that aim at benefiting the entire population of local communities. The foundation has filled the niche in government-funded community services.

Many community foundations in Shanghai have contributed to developing community public benefit projects, increasing community self-governance competence, and cultivating acquaintance society. Nonetheless, they have also encountered two obstacles in their own development. One pertains to fundraising. Enterprises have been the dominant source of the foundations’ funds; therefore, more sources need to be explored. The other obstacle is that existing foundations are in need of high-quality talent, without whom it would be very difficult for the foundations to design high-quality projects. Therefore, talent cultivation will remain an important task for further development of community foundations in Shanghai.