By Michael R. Hobbs

Bank of America, the banking institution formed by this week's merger of NationsBank of Charlotte, N.C., and BankAmerica of San Francisco, announced today the formation of a new foundation that will make annual grants of approximately $100 million.

The Bank of America Foundation will begin its philanthropic efforts with a round of $10,000 grants made to 100 nonprofit organizations in 100 communities around the country, the company says. The chosen organizations received the contributions earlier this week. Formal announcements are being made today.

"We could think of no better way to celebrate the birth of our new company than to demonstrate that we will be a positive force in our communities," says Hugh McColl, Bank of America chairman and chief executive officer.

In each of the communities, local bank officers chose one organization to receive each award. Selected organizations focus on meeting the educational needs of children and families in low- to moderate-income areas. The effort will be a forerunner of the Bank of America Foundation's grantmaking program that will begin next year, the company says.

The new foundation will direct the charitable giving program of the Bank of America. It is the largest financial services philanthropic foundation in the country, the bank says.

Bank of America Foundation President Lynn Drury says organizations supported by the foundation will be ones focusing in providing programs and services in the areas of education, health and human services, community development, and arts and culture.

"The new Bank of America is composed of an incredibly diverse population of communities, customers and associates," she says. "Our challenges is to develop a giving program that reflects that diversity, and at the same time, focuses on areas of great need where we can make a real difference."

Bank of America now is the largest bank in the U.S., with operations in 22 states and the District of Columbia.

Michael R. Hobbs can be reached at
mrhobbs@mindspring.com