What is The Norfolk Foundation?
The Norfolk Foundation is a nonprofit community foundation that manages and invests charitable funds for individuals, families, businesses and other nonprofit organizations. It was founded in 1950 and is the largest grantmaker and scholarship provider in southeastern Virginia. Since its founding it has provided more than $97 million to improve life in southeastern Virginia.

How is it different from a commercial gift fund?
The Foundation offers more charitable products at the same, or lower, service charges than commercial gift funds. The Foundation also has staff members who know their community and its needs so they can help connect your clients to the causes they care about the most.

What advantages will my clients enjoy with a fund at The Norfolk Foundation?
The Norfolk Foundation, with public charity status, offers the maximum tax advantage allowed by the federal tax laws. Your clients' contributions to Foundation funds may receive a higher deduction than the same gift to a private foundation. In addition, our staff provides personalized attention to help donors fulfill their philanthropic wishes.

What types of assets can my clients 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.

Are there options for people who cannot afford to part with assets or income at the present time?
Absolutely. Through deferred giving vehicles such as charitable remainder trusts or  gift annuities, your client can plan to create a fund in the future while receiving current year tax deductions. Some arrangements can help provide current income, help diversify a portfolio and avoid capital gains, gift or estate taxes. Of course, clients can always make a bequest through their will.

How are investments managed?
Funds are managed by an outside investment firm in a diversified investment portfolio structure. Investment performance and management are regularly reviewed by the Foundation’s Investment Committee.

What amount is needed to start a fund?
A named gift fund can be started with an initial contribution of $25,000. Clients can contribute any amount to the Foundation’s Community Funds, which support grantmaking to a wide array of nonprofit organizations or offer the option of supporting specific concerns such as arts and culture; civic leadership; educational achievement; environment; health and human services, and scholarships.

How are grants made from funds?
With donor advised funds, donors or their fund advisors communicate with us regularly to recommend grants to charities. With designated funds that name specific nonprofit recipients grants are made to the organizations annually. Field of interest and unrestricted funds are distributed through the Foundation’s competitive grantmaking program. Grants are awarded quarterly from these funds.

How are scholarships awarded from funds?
Our scholarship staff accepts applications directly from students and also works with guidance counselors and advisors at area schools to help identify students needing scholarship assistance. Students can apply directly to the Foundation for scholarship funding. 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 or field of study. Our staff works to find candidates meeting those criteria. Scholarship checks are written to specific schools, colleges and universities and earmarked for specific students. For details on scholarships click here.

Would establishing a private foundation make sense for my clients?
A private foundation works for some people, but it can involved several months of paperwork to establish. It then can become an ongoing administrative burden. Private foundations can be expensive to administer and have rules and regulations some donors find limiting. For example, private foundations must file a separate tax return, pay excise tax and meet an annual pay-out requirement. For a comparison chart on private foundations and The Norfolk Foundation click here.

Can my clients' family members stay involved in a fund?
With a donor advised fund your clients can include specific family members in their charitable planning by naming them as donor advisors, who will recommend grants from the fund. They may add up to one succeeding generation as donor advisors.

Can my clients keep donations anonymous?
Absolutely. The Foundation respects all requests for anonymity. Your clients can choose to give their fund a name that does not reveal their identity. They also request that grants from their fund remain anonymous.

Can a nonprofit organization create a fund to benefit itself?
Yes. The Foundation has more than a dozen funds started by nonprofit organizations. Nonprofit organizations are encouraged to explore starting an organizational fund at the Foundation. These funds ensure fiscal perpetuity and are an efficient way to gain investment expertise for the organization’s endowment. Grants can then made directly to the designated organization from the fund each year. Individual donors can also create funds to benefit specific nonprofit organizations.