Frequently Asked Questions
How do “component funds” work?
All foundations share certain common elements. The group of individual funds comprising the foundation (the component funds) must be used exclusively for charitable purposes such as grants to nonprofits or scholarships for students. Component fund assets are combined for efficient investment. The component funds share on a pro rata basis modest administrative expenses, thereby avoiding substantial costs.
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What is the Eastern Shore of Virginia Community Foundation?
The Eastern Shore of Virginia Community Foundation (ESVCF) is a permanent charitable endowment established in 2005 to benefit residents of Virginia’s Eastern Shore. The Foundation’s primary goal is to aid nonprofits by providing grant funding. It is affiliated with the Hampton Roads Community Foundation, one of the country’s largest and most experienced community foundations.
Who governs the Foundation?
A nine-member Board of Directors governs the Foundation and approves all grants to nonprofit organizations. Scholarships are administered by the Hampton Roads Community Foundation in keeping with the donor’s objectives and the Hampton Roads Community Foundation’s applicant screening policies. In addition to directing ESVCF’s grantmaking, the board also makes Eastern Shore grant recommendations to the Hampton Roads Community Foundation in certain cases. The members of the Board are chosen for their leadership and business acumen.
How are gifts made to the Foundation?
Gifts or Bequests to the Foundation may be made outright or through a variety of methods, including Charitable Remainder Trusts and Charitable Lead Trusts. Funds of sufficient size may carry the name of the donor or memorialize another person, if desired. Smaller gifts are added to the Eastern Shore of Virginia Community Foundation Fund, an unrestricted grantmaking fund, or to another fund within the ESVCF “Family of Funds” at the Hampton Roads Community Foundation as directed by the donor. In either case gifts are permanent and will grow with time. The Foundation encourages donors to continue adding to the permanent funds of the Foundation.
What is the focus of the Eastern Shore of Virginia Community Foundation?
As a community foundation the Foundation strives to strengthen the fabric of the Eastern Shore and to reflect the diverse interests of donors. The Foundation focuses its resources on projects and programs likely to continue beyond the period of funding. Therefore highest priority for discretionary grants is given to requests for specific capital projects, such as buildings, renovations and equipment needs that meet the Foundation’s goals.
How are Foundation assets invested?
The assets of the Foundation are held and invested by the Hampton Roads Community Foundation using its financial institutions and investment firms. The Hampton Roads Community Foundation Board of Directors sets overall investment policy and monitors performance. Investment accounts are audited annually by an independent accounting firm and summarized in the annual reports of the Hampton Roads Community Foundation and ESVCF.
How do donors use the Eastern Shore of Virginia Community Foundation?
The Foundation offers two ways to provide lasting help to Accomack and Northampton counties. Some donors contribute to ESVCF’s unrestricted fund. Their gifts help build a permanent endowment that supports grantmaking to qualified local charities in need of assistance. Other donors choose to establish named funds of $25,000 or greater, which are tailored to fit donors’ specific interests.
Gifts to the Eastern Shore of Virginia Community Foundation, a 501 (c)(3) organization, can provide substantial savings on income, capital gains and estate taxes. You should consult with your financial advisor on the best way to give.