A Report Card to the Community and Constituents

As Trustees of the United Way Foundation, we have the responsibility for assuring that all participants have access to professional expertise and guidance from a well respected Board of Trustees and cadre of exceptional professional advisors.

Our economic environment today is experiencing a swift and revolutionary dynamic on a global scale—with greater complexities and significantly higher uncertainties than in past generations. We believe that our cumulative experiences and exposure to prior crises provide us with a unique and seasoned perspective for the long term.

YThe expertise attributable to the Board of Trustees and our Investment Managers—Wachovia and SunTrust, shores up our value proposition—to provide the highest caliber of oversight through wisdom and access to talented estate planning professionals volunteering their time, talents and expertise. By providing access to the best and brightest, we are fulfilling our obligation to our community and to our many constituencies.

Additions to funds during 2008 totaled $696,175 with grants, transfers and distributions of $284,107. Foundation grants make a difference in the lives of local residents by securing a pathway to success. Our Charitable Gift Annuity Program expanded by Additions to funds during 2008 totaled $696,175 with grants, transfers and distributions of $284,107. Foundation grants make a difference in the lives of local residents by securing a pathway to success. Our Charitable Gift Annuity Program expanded by

The three years 2005 thru 2007 provided solid investment returns averaging 8.95% annually for pooled assets under management. The five year time-frame ending June 30, 2008 provided returns averaging 8.31%. As of September 30, 2008, the five year return slowed to 5.01%. The fourth quarter of 2008 marked a significant retrenchment worldwide with double digit losses. In advance, the Investment Committee met to assess portfolio holdings and made mid-course corrections with guidance provided by our Investment Manager.

This year holds change on a scale seldom experienced in a lifetime--.the freeze in credit markets causing pandemonium in most of the world’s stock markets. Although there are hopeful signs for the future, the level of anxiety in the markets is palpable. The newly elected trustees are indeed lucky to have such a sophisticated and experienced group of peers. Markets such as last year are the ones that make our value to our constituents apparent. While we cannot avoid all losses, we can insure we have diversified to a degree that greatly reduces the chance of a calamity.

As the economy continues to weaken, accompanied by further job losses, and a declining employment market, the lack of education, training and job skills necessary to meet new opportunities requires immediate attention. Quality child care and improved reading levels for early learners are critical to preparing children for a new world environment. Ending homelessness and embarking on income stability which supports families in transition and keeps them together provides a solid base for the future. By addressing the needs of the uninsured and medically underserved, the program supports healthy families thus growing healthy communities.

To accomplish these strategic objectives in the fields of health, income and education, a steady and increasing stream of income derived from a strong and growing endowment funded with lifetime gifts and bequests from many generous donors will assure a brighter future for those in need in our community. Building inter-generational relationships with donor families is an important link to a legacy of caring which will endure for generations to come. By “seeding” favorite family charities today with smart giving strategies, you can help your estate, your community and your heirs in coming years.

The UW Foundation’s Board of Trustees and the Investment Committee members emphasize accountability to donors, service recipients and stakeholders by placing fiduciary responsibilities in the forefront as a measure of quality and excellence—thus assuring an asset base to meet the charitable and philanthropic goals to which the United Way is committed for the long term.

I am indeed pleased to announce the affiliation of three agency affiliates in 2008: The Sertoma Club of Norfolk, Northeastern Community Development Corp. (North Carolina) and Portsmouth Schools Foundation. We take pride in our support of the United Way’s annual campaign and we salute the progress of the highly successful and growing Women’s Initiative with its remarkable leadership and vision.

As your Chairman, I wish to express my appreciation to all, whose involvement contributes so much to the success of our Foundation. Much of the progress of the United Way Foundation is due to the efforts of the Professional Advisory Committee and estate planning professionals, and to the 40+ affiliated agencies and their Boards of Directors.

To the members of the Legacy Society, the Board of Trustees and I express genuine thanks. In these times when so many world and national events seem beyond our control, it is clear that we must embrace the fabric of what makes the Hampton Roads community great.

Please join us in furthering an inspiring vision for the future by establishing your legacy of caring with and annual campaign endowment through an outright gift or a bequest to the United Way Foundation and its agency affiliates.

It’s been a great honor and pleasure to serve as your Chairman.

Regards,

Eric L. Fox, Immediate Past Chair
Board of Trustees
United Way Foundation