Foundations Stepping in to Help Cash-Strapped Cities

Facing budget cuts and shrinking tax bases, a growing number of cities are turning to private giving to pay for infrastructure, public safety, and other functions traditionally covered by taxpayers, Bloomberg writes.

Detroit is getting hundreds of millions of dollars in foundation support as it recovers from bankruptcy, and economically struggling towns such as Wisconsin Rapids, Wisc., and Madison, Ala., are relying on private funds for economic-development projects and police equipment. The Charles Stewart Mott Foundation is paying a third of the $12-million cost to connect Flint to Detroit’s water system.

“Government gridlock has left many communities looking for solutions to some of the big challenges they face,” said Vikki Spruill, president and CEO of the Council on Foundations. “The limitations of political leaders to address the pressing needs of communities have increased pressure on foundations to assume roles that government has historically taken.”

Read a Chronicle of Philanthropy interview with Ryan Friedrichs, the Detroit city government’s liaison to foundation.

Note: This article has been corrected to say that the grant from the Mott foundation went to help reconnect Flint to Detroit’s water system, not to help replace the pipeline.