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FAQs
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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.
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How is it different from a commercial gift fund?
The Foundation offers more charitable options 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 you to
causes and interests.
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What advantages will I enjoy with a fund at The Norfolk
Foundation?
With its public charity status, the Foundation offers the
maximum tax advantage allowed by federal tax laws.
Your
contribution to a Foundation fund may receive a higher
deduction than the same gift to a private foundation. In addition, our staff provides
personalized attention to help you fulfill your
philanthropic wishes.
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What types of assets can I 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.
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Are there options if I cannot afford to part with assets
or income at the present time?
Absolutely. You can make a bequest through your will or
trust. You can also select a charitable gift annuity or
charitable remainder trust, which provide income and current
year tax deductions. Some arrangements can help provide
current income, help diversify a portfolio and avoid capital
gains, gift or estate taxes.
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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 the
Foundation’s investment committee and board of directors.
Click here for financial
results.
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What amount is needed to start a fund?
You can create a named gift fund with an initial
contribution of $25,000. You can also contribute any
amount to the
Foundation’s Community Funds, which support
grantmaking to a wide array of nonprofits or offer you the
option of supporting specific causes, such as arts and
culture; civic leadership; educational achievement;
environment; health and human services, and scholarships.
You can also add any amount to an existing fund at the
Foundation.
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How are grants made from funds?
With donor advised funds, you or your fund advisors
communicate with the Foundation regularly to recommend
grants to charities. With designated funds that name
specific nonprofit recipients, we make grants annually to
the organizations named. Field of interest and unrestricted
funds are distributed through the Foundation’s competitive
grantmaking program. We award grants quarterly from these
funds to nonprofit organizations that benefit the residents
of southeastern Virginia. For details on grants
click here.
- 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. 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 specific
schools, colleges and universities and earmarked for
specific students. For details on scholarships
click here. Students can
apply directly to the Foundation for scholarship funding.
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Would establishing a private foundation make sense for
me?
A private foundation works for some people, but it can
involve 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, a private foundation 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.
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Can my family stay involved in my fund?
Yes. With a donor advised fund you can include specific
family members by naming them as donor advisors who
recommend grants from the fund. When establishing advised
funds, you may add up to one succeeding generation as donor
advisors.
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Can I keep my donations anonymous?
Absolutely. The Foundation respects all requests for
privacy. You can choose to give your funds a name that does
not reveal your identity. You can also request that grants
from your funds remain anonymous.
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Can a nonprofit organization create a fund to benefit
itself?
Yes. The Foundation has more than a dozen funds started by
nonprofit organizations. Other nonprofits are encouraged to
explore starting organizational funds at the Foundation.
These funds ensure fiscal perpetuity and gain investment
expertise for an organization’s endowment. Grants are made
directly to the designated organizations from their funds
each year. Individual donors can also create a fund to
benefit a specific nonprofit organization.
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