In 1988, the Council of Michigan Foundations and Community Foundation Members developed a proposal to the W.K. Kellogg Foundation for the Michigan Community Foundations' Youth Project. Their efforts meant to accomplish the following:

• Expand the areas served by community foundations so that every citizen would have access to a philanthropic vehicle
• Strengthen existing community foundations
• Involve youth in community foundations through the creation of Youth Advisory Committees

To spearhead the effort, CMF received the help of the W.K. Kellogg Foundation and the Charles Stewart Mott Foundation – formidable advocates for community self-reliance and community foundations, and champions of youth. The Kellogg Foundation agreed to help seed the development of community foundations and, in the process, create a philanthropic training ground for youth.

And so, a challenge was made - for every $2 raised locally and placed in a permanent endowment within a community foundation, the Kellogg Foundation pledged $1 match to build a youth fund - up to one million dollars for every participating community foundation! As part of this challenge, each community foundation was required to form a Youth Advisory Committee, made up of young people and adult mentors. Their primary goals were to address local youth needs, assist in fund development activities, and direct grantmaking toward youth programs.

A grant is defined as "an award of funds to an organization or individual to undertake charitable activities." Grantees submit grant applications, which are reviewed by the students, who in turn, make recommendations about whether or not the grant should be approved. Grants which positively affect the lives of young people in the community receive first priority.