FAQs for Professional Advisors
- What is the Hampton Roads Community Foundation?
It is a nonprofit community foundation that manages and invests charitable funds for individuals, families, businesses and other nonprofit organizations. It was formed on January 1,2010 from the merger of The Norfolk Foundation (founded 1950) and The Virginia Beach Foundation (founded 1978). It is the largest grantmaker and scholarship provider in southeastern Virginia.
- How is it different from a commercial gift fund?
We offer more charitable options at the same, or lower, service charges than commercial gift funds. We also have staff members who know your community and its needs and can help connect your client to causes and nonprofits working in their interest areas.
- What advantages will my client enjoy with a fund at the Hampton Roads Community Foundation?
With our public charity status, we offer the maximum tax advantage allowed by federal tax law. Contributions may receive a higher deduction than the same gift to a private foundation. In addition, our staff provides personalized attention to help your client fulfill philanthropic wishes.
- What types of assets can my client use to create a fund or add to an existing fund?
Options include cash, securities, real estate, retirement accounts, insurance policies and interests in privately held corporations and limited partnerships. In addition, collectibles such as stamp collections are assets that can be sold to create a fund. One limited-time opportunity is donating up to $100,000 in Individual Retirement Account assets without them counting as income. This opportunity is set to expire after Dec. 31, 2011. Click here for details.
- Are there options if my client cannot afford to part with assets or income at the present time?
Absolutely. Your client can make a bequest through a will or retirement fund. Your client can also select a charitable gift annuity or charitable remainder trust, which provide income and current year tax deductions.
- How are investments managed?
Funds are managed by outside investment managers in a diversified investment portfolio structure. Investment performance and management are regularly reviewed by our investment committee. Click here for our most recent financial results.
- What amount is needed to start a fund?
Your client can create a permanent, named gift fund with a contribution of $25,000 or more. Your client can donate any amount to an existing fund or to our Community Funds, which provide grants to many nonprofits or let you support specific causes, such as arts and culture; civic leadership; educational achievement; environment; health and human services, and scholarships.
- How are grants made from funds?
A portion of funds are awarded for grants based on our spending policy – currently 4.5% of an average of 12 trailing quarters. The selection of grant recipients depends on the type of fund your client creates. With a donor advised fund, the client or the advisors he or she selects recommend grants to nonprofits.With a designated fund, we pay annual grants to the nonprofit recipients selected when the fund is established. With a field of interest or unrestricted fund, we review grant applications through a competitive program and award grants to nonprofits. For details on some of our most recent unrestricted and field of interest grants click here.
- How are scholarships awarded from funds?
Each year we accept scholarship applications directly from students. We also with school guidance counselors and Access College Foundation advisors to help identify students needing scholarship assistance. Recipients generally are selected on the basis of financial need, academic achievement and initiative. Many of our scholarships have specific criteria established by donors, such as college attended and field of study. Our staff works to find candidates meeting those criteria. Scholarship checks are written to the colleges and universities and earmarked for scholarship recipients. Most recipients are eligible for renewal of their scholarships.
- Are there advantages for creating a fund at the Foundation rather than establishing a private foundation?
Starting a fund here is simple and does not involve a lot of paperwork or expenses. Our staff handles the details of administering your fund, filing tax returns and meeting annual pay-out requirements. Donors get the fun of seeing their gifts helping make their community better. For a comparison chart on private foundations and the Hampton Roads Community Foundation click here.
- Can my client's family stay involved in the fund?
Yes. With a donor advised fund your client can include specific family members or friends by naming them as donor advisors who recommend grants from the fund. When establishing advised funds, your client may add up to one succeeding generation as donor advisors.
- Can my client keep donations anonymous?
Absolutely. We respect all requests for privacy. Your client can choose to give a fund a name that does not reveal an identity. You client can also request that grants from the r fund remain anonymous.
- Can a nonprofit organization create a fund to benefit itself?
Yes. We have nearly 40 funds started by nonprofit organizations that provide them annual grants to benefit their operations. These organizational funds are permanent and grow over time. They can be established by the nonprofit or by individuals who establish a fund for the organization. Organizational fund holders benefit from our investment expertise. Individual donors can also create a fund to benefit a specific nonprofit organization.
