In philanthropy, endowments are often taken for granted — a built-in feature of large, traditional foundations. But for many smaller, community-led funds, especially those serving rural or under-resourced regions, endowments are rare.
The fundraising never really stops, and long-term security can feel out of reach. That’s why the decision by Alliance Healthcare Foundation to transfer $7.5 million — 10% of its endowment — to the Imperial Valley Wellness Foundation stands out. It’s a quiet but significant shift: moving resources into the hands of local leaders, not just for a grant cycle, but hopefully for generations.
The Imperial Valley, a rural region on the California–Mexico border, has some of the highest poverty and unemployment rates in the state — and some of the lowest philanthropic investment. Alliance Healthcare Foundation has funded organizations there for more than a decade, but traditional grantmaking wasn’t closing the gap. So they did something unusual: they gave up control.
Instead of another grant cycle, AHF transferred part of its endowment, permanently, to the Imperial Valley Wellness Foundation — a young, locally governed fund built to serve the community on its own terms.
Moves like this are still rare in philanthropy, where control and strategy often remain in the hands of donors. But they raise important questions: What does it really mean to trust local leadership? How can foundations share not just money, but ownership? And what might change if more funders took this step?
We spoke with Sarah Lyman, Executive Director of AHF, about what led to this decision and what it might mean for others.
Let’s start with the basics. Why did AHF decide to do this?
Imperial County is California’s most underfunded county, with some of the highest poverty and unemployment rates in the state. Unlike San Diego (where AHF is based), it lacks a strong philanthropic sector, meaning that local organizations must rely on outside funding to survive.
AHF has supported nonprofits in the Valley since 2013, but no matter how much we gave, we saw firsthand that traditional philanthropy wasn’t closing the gap.
So we asked ourselves: What if we took a different approach? Instead of controlling the funding, what if we trusted the community to decide for itself?
We engaged with local leaders to explore a more sustainable, community-led approach, which led to the formation of the Imperial Valley Wellness Foundation, and a historic commitment to transfer 10% of our corpus—$7.5 million—directly to IVWF.
Early on, we hoped this would spur other funders to make additional contributions to grow an initial endowment, but that proved difficult. So we waived the idea of matching commitments because this wasn’t just a gift; it’s a vote of confidence in IVWF’s leadership and a long-term investment in Imperial Valley’s future.
At the heart of this decision was a simple truth: Who better to allocate resources than those living the reality every day? This isn’t charity—it’s about giving communities the power to lead their own future. And we hope it inspires other funders to rethink how philanthropy can truly serve communities that have been overlooked for too long.
You’re not just making a big grant—you’re actually transferring part of your endowment. That’s a major shift in power. How did your board get on board with this?
Deciding to transfer part of our endowment (on top of our above-average spending and impact investing), wasn’t something that happened overnight—it was a journey. And like with any big decision, there were questions, discussions, and yes, some skepticism. That’s healthy governance—bold ideas should be debated.
What made the difference? Deep engagement and trust-building over time. AHF and IVWF have had a strong working relationship for years, with intentional shared-learning and capacity development since 2020. This meant our board wasn’t just hearing about Imperial Valley’s challenges from a distance—they were in ongoing conversations with IVWF’s leadership, and benefitting from bi-directional learning.
At the same time, AHF was also reflecting on how we could maximize our impact across our grant programs. We looked at where our influence was truly adding value – and where it might actually be getting in the way.
What really brought it home with our work in Imperial Valley was getting out of the boardroom and into the community. Our board made several field visits to Imperial County, meeting directly with residents, nonprofit leaders, and advocates to see firsthand why this investment was so critical. Those experiences transformed the conversation from financial risk to moral responsibility.
Ultimately, the decision wasn’t just about moving money—it was about moving power to where it belongs. Trusting the community, rather than controlling the funding, was the best way to create lasting change. That’s how we got here. And we hope more funders follow.
What do you think makes this kind of move so unique?
Philanthropy has been shifting toward bigger and faster giving, but very few foundations have taken the next step—transferring wealth directly to community-led institutions. That’s what makes AHF’s decision so groundbreaking.
AHF didn’t just write a big check or fund a temporary initiative—it moved 10% of its endowment to IVWF ensuring that the community has long-term financial autonomy.
We did this without reducing spending in our normal grantmaking activities (so, effectively we spent almost 17% of our endowment this year, compared to the minimum 5% spending limit the majority of private funders stick to as a means to preserve assets and prioritize their own “perpetuity”.)
This isn’t part of a broader “sunsetting” strategy either. Unlike many rural community foundations that lack endowments and must constantly fundraise, IVWF now has a sustainable financial foundation to serve Imperial Valley on its own terms.
Most major philanthropy is urban-focused, while rural areas receive only about 7% of philanthropic dollars. AHF challenged that norm by prioritizing rural equity—a move few funders have been willing to make. And while many foundations hesitate to relinquish control, AHF made a bold statement: communities should decide how best to invest in their own future.
This isn’t just about funding—it’s about power. If more funders follow this model, philanthropy could truly help close wealth gaps and build lasting social infrastructure where it’s needed most.
What do you hope happens next? Should more funders be thinking about wealth transfers like this?
Absolutely! We hope this move sparks a bigger conversation in philanthropy about what it really means to shift power and resources to the communities that need them most.
For Imperial Valley, this capital transfer means local resources, held and managed for the long-term—not just another short-term grant cycle. The earnings from this fund will support community-led investments, giving IVWF the freedom to shape solutions that truly reflect the needs of the people who live there. Real, lasting change comes from within—and now, the community has the financial foundation to drive it.
For philanthropy at large, we hope this inspires more funders—especially those supporting rural and Indigenous communities—to rethink their approach. Why hold onto wealth when you can transfer it to those who need it most? Why control programming decisions or grant outcomes, when the community might actually have a different definition of “success”?
Our decision to shift from a grantor-grantee model to a true peer partnership isn’t just an experiment—it’s a call to action. The philanthropic sector is already facing growing pressure to rethink traditional funding models and address long-standing inequities. What if more foundations took the leap? What if capital redistribution became the new norm? If philanthropy is serious about equity, then this is the future—one where communities aren’t just recipients, but owners of their own pathway forward.
What’s next for IVWF now that they have this capital?
Now that IVWF has this capital, their focus isn’t on simply distributing grants—it’s about building civic infrastructure that will support Imperial Valley for generations to come. Unlike a traditional foundation, IVWF, under the incredible leadership of Roque Barros, doesn’t see itself as just a funder; it’s an intermediary and convener, ensuring that decisions are made by the people who live and work in the community, not outsiders.
Civic infrastructure means more than just financial resources—it’s about strengthening the networks, leadership, and institutions that make long-term change possible. IVWF is bringing together local voices, regional partners, and larger institutions that want to invest in Imperial Valley, making sure that resources are not just flowing into the community, but being guided and stewarded by those who know the needs best.
With this fund, IVWF is laying the groundwork for sustainable, community-led change—creating a foundation of trust, collaboration, and self-determination that will shape the future of Imperial Valley.
And, selfishly, I have to say, one of the things I’ve enjoyed the most about this journey is how much we (and I personally) have learned from Roque’s leadership. His approach and style to philanthropy and community development has influenced other parts of our work, and I know we’ll continue supporting one another as peers for years to come.
