This guide is intended to give funders a concise overview of an emerging field that increasingly impacts their work. I want to emphasize, however, that because democratic governance is so complex, diffuse, and diverse – and above all, because this work is changing and growing so rapidly – this guide cannot be considered an exhaustive description of the field, and it will be out of date very quickly. One facet of a healthy local democracy is the effectiveness of government and the leadership of elected officials. But a more fundamental aspect – and the more important one to funders – is the broader relationship between citizens and the institutions that provide services, make public decisions, and react to people’s concerns. (In this guide, we will define the term “citizens” as referring to all kinds of residents, not just citizens in the legal sense.) The most obvious of these institutions is local government, but foundations, nonprofits, businesses, other government agencies, and faith-based institutions all play important roles in public problem-solving.