This chapter explores how novel models of community engagement in heritage can safeguard rural and island heritage, facing increasing risks from compound effects of social pressures and climate-related hazards. The chapter seeks to propose systemic approaches to conceptualising heritage and community links and outcomes for communities, supporting people- and place-centred approaches to management. Drawing on systems thinking and the conceptualisation of heritage bodies as ‘social institutions’, the chapter proposes a ‘reciprocal benefits’ framework where community-led heritage safeguarding can act as catalyst for change, achieving socio-environmental goals and supporting local communities’ needs. In this framework, community participation in heritage projects not only enhances local wellbeing and cohesion but also improves institutional capacity, heritage protection and enhanced participation leading to longer-term sustainability of heritage, climate and place-responsive management and social resilience. Focusing on evidence from research across island heritage in Scotland and the Scapa Flow Landscape Partnership Scheme in the Orkney Islands—a rural and ‘climate-vulnerable’ context—this chapter presents perspectives of heritage professionals and community members on challenges for protection of local heritage assets through a ‘heritage-place-community’ systemic understanding. Qualitative data collected through semi-structured interviews were thematically analysed to identify perceived social and institutional impacts and informed the design of causal loop diagrams to understand links between social and institutional outcomes of community input in heritage protection. The paper focuses on the use of causal loop diagrams, a tool from system dynamics, employed to visualise interdependencies between community and heritage outcomes, supporting resilience. The analysis reveals how increased social capital, sense of place, and intergenerational transmission of knowledge can strengthen both local commitment to heritage and the strategic practices of heritage organisations. The chapter will elaborate on the wider use of the systemic analysis tool in the sector and the application of the reciprocity framework, demonstrating the strength of reciprocal relationships between institutions and communities as innovative tools for effective and inclusive management. This chapter contributes a theory-informed and practice-based model for evaluating and improving participatory heritage processes, particularly useful in contexts where heritage is facing increasing risks from compound effects of social and climate pressures, where coordinated efforts can make a difference to avert loss. It highlights the relevance of systems thinking and holistic approaches in guiding heritage institutions to act not just as custodians of heritage, but as enablers of sustainability and community-led resilience.