In 1994/95 , on the heels of Measure 5’s cuts to public education, parents from a number of Portland schools asked the Portland Public School Board to allow them to create a vehicle for raising private dollars to support teaching and staff positions and core operations at their schools. The Portland School Board allowed for the creation of “local school foundations” at all of Portland’s public schools, but knowing that not all of the schools had a parent community that was able to raise significant funds, the School Board required that one-third of all funds raised (after the first $10,000) by these foundations be set aside in a equity fund that is stewarded and distributed to high-need schools by the Portland Schools Foundation. The other two-thirds is used by the school for instructional staff, educational enhancements, extended day activities, and contracts.

Since its establishment, the PPS Equity Fund has attracted national attention for its creative and collaborative approach to addressing disparities in school funding and has awarded more than $7 million in grants to schools in need. Last year 20 schools and nine community organizations received grants. On April 5, 2010 the Portland Schools Foundation announced its 2010-11 PPS School-based Grant recipients; On June 2, 2010 the PPS Community-based Grant awards were announced.