The idea of the community foundation originated in Cleveland, Ohio, in 1914. F.H. Goff, president of the Cleveland Trust Company, noticed a trend developing in the area of charitable trusts. Often in the case of a bequest, the donor designated a specific use for the trust. This led to tightly restrained funds and difficulties when the purposes of the funds became impossible to fulfill. Goff's plan, now known as the "Cleveland Plan," called for the donor to agree to the establishment of a charitable trust while authorizing a group of citizens acting as a distribution committee to determine the disbursement of the funds for the good of the community if the original purpose proved obsolete. The funds themselves would be protected and invested by a professional entity, the bank, while the distribution of the funds would be placed in the hands of responsible citizens to distribute for the benefit of the community. When the trustee institution or institutions create a resolution of trust governing the funds, a community foundation is formed. Funds are contributed either to a general foundation fund where they are combined with other gifts or to a specific fund designated by the donor.

Community foundations play a vital role in the community they serve. Directors and trustees of community foundations bear the responsibility of distributing funds to organizations for the overall benefit of the community and are responsible to the community for those funds. Donors, as citizens, have a vested interest in the activities of the foundation and often share in the benefits of foundation grants with their neighbors. Their gifts when added to other foundation gifts allow the foundation to make larger grants with greater impact. Since community foundations' activities are limited by geographic area, donors have the added assurance that their money will be used to better the place where they live.

A resolution of trust of three financial institutions created the Indianapolis Foundation in 1916 just two years after the Cleveland Foundation formed. According to the resolution, income from the Indianapolis Foundation would be dispersed on the written order by its board of trustees for charitable uses that would promote the welfare of the citizens of Indianapolis, Indiana. The Fletcher Trust Company, Indiana Trust Company, and Union Trust Company officially introduced one of the first community foundations in the United States on January 5, 1916, in the Indianapolis Star. Appointed as the first Board of Trustees of the foundation were Henry W. Bennett, postmaster; Charles Warren Fairbanks, attorney and former Vice President of the United States; Monsignor Francis H. Gavisk, a community religious leader; Henry H. Hornbrook, attorney and civic leader; Louis H. Levey; and Josiah K. Lilly, Sr., President of Eli Lilly and Company. As was the case with foundations formed using the Cleveland Plan, the positions are appointed by public officials. The Judge of the United States District Court, the Judge of the Circuit Court, and the Mayor of Indianapolis each appoints two trustees for six-year terms for a total of six board members. Although there are no specific qualifications for the board positions, "these private citizens are chosen for their knowledge about the community and their ability to represent the public interest" (Encyclopedia of Indianapolis, 780). The board members are ultimately responsible for the grant distribution decisions of the foundation.

Alphonso P. Pettis, a former owner of a dry goods store in Indianapolis, made the first gift to the Indianapolis Foundation in 1920. His gift totaled more than $300,000 and was closely followed by others including Delavan Smith, James E. Roberts, and James E. Lilly these donations secured the financial stability of the foundation and allowed the foundation to begin distributing grants. The board hired Eugene Foster in 1924 as the first executive director of the foundation. His job included managing the daily operations of the office as well as preparing the financial reports for the board. The other aspect of his job included correspondence with those requesting funds and bringing those requests before the Board of Trustees for action. With the appointment of the first executive director, came the first grant. The Public Health Nursing Association received the foundation's first gift that provided for a visiting nurse to care for crippled children at home. Grant requests were originally submitted in writing to the director of the foundation in the form of a proposal letter including detailed information about the request, the use for the funds, and the intended impact of the grant. The proposal then went before the board for approval and the approval amount. Site visits and further correspondence often came prior to the board's approval of a grant.

From the beginning, the foundation devoted its grant-making activity to organizations in the specific areas of civic, educational, and benevolent work. Citizens of all ages reaped the benefits of the foundation's grants. As the foundation continued to give in these areas, it expanded its boundaries to include civic organizations such as the opera, theatre, and museums, as well as community service organizations such as Meals on Wheels, settlement homes, and the YMCA. Hundreds of organizations and agencies in Indianapolis have received funding from the foundation making practically every citizen a beneficiary of the foundation in some way whether a researcher at the Marion County Public Library, a visitor to the Indianapolis Children's Museum, or a pedestrian on Monument Circle. Its significance reaches beyond that of grant making to community involvement and support. The foundation grew and matured alongside the organizations it has supported giving it a strong voice and vital place in the community. By 2003 the foundation awarded $3.5 million in grants annually with the average grant being $35,000.

The Indianapolis Foundation continues to adapt to the changing nature of the city while keeping its earliest principle of community leadership and service. The growth of Indianapolis and the communities surrounding it inspired a new way of looking at collaboration among the community funds in the region. Originally under the Cleveland Plan for creating a community foundation, the Indianapolis Foundation organized as a trust. In 1997 the Indianapolis Foundation partnered with the Legacy Fund of Hamilton County to form the Central Indiana Community Foundation (CICF). The trust side of the foundation continues to be governed by the Amended Resolution of Trust originally created in 1916 while the corporate activities of the foundation are now governed by the articles of incorporation and bylaws of CICF.

Although the community foundations affiliated with CICF operate separately, CICF combines the knowledge of these foundations to provide leadership to local organizations and allow a more regional focus in giving and community service. CICF is active in assisting community programs like the Indianapolis Cultural Trail that supports the city's goal of becoming a cultural destination, Family Strengthening that develops resources for the welfare of the family, and Philanthropy Day that encourages residents to become involved in giving. CICF has its own endowment and awards over $20 million in grants annually. Today the Central Indiana Community Foundation and its affiliates embrace these seven vision priorities within the central Indiana region: to respond to basic needs, to develop productive citizens, to build strong neighborhoods, to embrace inclusiveness, to promote community amenities, to promote philanthropy, and to promote the community. The CICF historical timeline can be viewed at http://www.cicf.org/AboutCICF/History.cfm.