Enrichmond’s remaining assets headed for receivership, sources say

By Jeremy Lazarus

A deal that could resolve issues related to the collapsed Enrichmond Foundation is in the works, the Free Press has learned.

As outlined, the plan calls for the foundation’s remaining assets, mostly cemeteries and a community garden in Church Hill, to be placed in a receivership, the Free Press was told.

The receivership became feasible after the State Corporation Commission deemed the foundation defunct on Jan. 1 for failing to file annual registration fees, the Free Press was told.

John H. Mitchell, the remaining Enrichmond board member, could not be reached for comment.

Though there still may be months to go with the legal paper- work, the Free Press was told the framework of the deal calls for City Hall to take over two historic Black cemeteries, Evergreen and East End, which are located adjacent to Oakwood Cemetery on the city’s border with Henrico County in the East End.

The receiver would be responsible for disposing of several other properties still in the foundation’s name, including the three lots that form the garden on Jefferson Avenue and two other gravesites, one on Forest Hill Avenue and one in Chesterfield County.

All are covered by deed restrictions that would limit who could purchase the properties or their future uses, according to people involved in crafting the deal.

Created by the city more than 30 years ago, the foundation was developed as an independent fundraising arm for city parks and recreation. The foundation also distributed grant funds to nonprofits and also served as a bank for community groups that did not want or have an IRS designation as a charity.

At least 86 community groups kept their money with the foundation, but their funds appear to have been used to pay foundation bills until the money ran out, previous reports have indicated.

At this point, the foundation’s single largest creditor is Virginia Community Capital, which is owed about $180,000 from a loan it made to the foundation. The community nonprofits collectively are estimated to have lost between $165,000 and $200,000.