Background
Hollingsworth Funds, Inc. (“Funds”), a charitable support organization was established by Mr. John D. Hollingsworth over twenty years ago. Upon his death at the end of 2000, almost all of his estate, valued at approximately $290 million, passed to this foundation. Under provisions of trust documents and his will, approximately 45% of the annual income distributions are designated for Furman University; 10% to the Greenville YMCA; and 45% to public charities (501(c)(3) organizations) operating within Greenville County, South Carolina as selected each year by the Directors of Funds. The Community Foundation of Greenville is one of the public charities specifically named as a beneficiary.
Trust documents and the Funds’ by-laws provide that Furman University proposes three directors, and the Greenville YMCA, the Community Foundation of Greenville, and the Chairman of John D. Hollingsworth on Wheels, Inc. proposes one each. An additional director is elected at large by the Board.
Mr. Hollingsworth’s assets were very illiquid, consisting primarily of valuable, mostly underdeveloped real estate and 100% of the stock of John D. Hollingsworth on Wheels, Inc., a textile machinery manufacturing business. There were real estate mortgages, estate taxes and other liabilities payable by the estate and Funds.
Some real estate has been sold to provide funds for debt payments and to make diversified investments. Consultants have been employed for real estate planning so as to convert non-income producing assets into income properties. In view of the large land holdings, this process will be accomplished only on a long-term basis, possibly over twenty-five years or more. All efforts are being made to increase the amounts of income available for distribution to Funds’ beneficiaries as rapidly as possible, but prudently so as to enhance the value of the real estate holdings.
One of the real estate properties owned is a 1,100 acre tract located on Verdae Boulevard, Interstate 85 and Woodruff Road in the City of Greenville. Realizing the potential value of this property, Funds engaged consultants to advise the best way to market or develop this area. It was determined that rather than sell off this property at present unsatisfactory prices, the highest return would result from a master plan for development. Due to the size of this property, the consultants advised that it would take twenty to twenty-five years to fully carry out the master plan. The master plan designed by one of the consultants provides for different types of residential uses, a full-care retirement center, a town center with retail shops, offices, hotels and a park together with green lands and trails. A separate subsidiary company, Verdae Development, Inc., has been organized to implement the master plan. It is envisioned that some of the property will be sold to developers to build out in accordance with the master plan, some may be developed by the subsidiary company and some may be leased. Some of the cash flow from this project will be used for infrastructure costs and the balance for additions to Funds’ investment portfolio. The Board of Directors believes that this master plan development will in the long run achieve the highest income stream for the benefit of Funds’ beneficiaries.
From the year 2001 through 2009, total grants to beneficiaries totaled $22,724,210, of which $9,165,812 went to various public charities in Greenville County.
Funds is an Internal Revenue Service Section 503(c)(1) organization. Funds does not solicit contributions from the public. Its financial statements are audited annually.
Hollingsworth Funds is using The Community Foundation of Greenville to help administer its community-wide, competitive grants application program. Visit the website shown to the right to ascertain the guidelines and criteria used in the grant-making process and to receive a grant application form.