After eBay, the popular San Jose, Calif.-based Internet auction site, went public last September, co-founders Jeffrey Skoll and Pierre Omidyar wanted to show their appreciation to the people who invested in eBay's stock.

ABC News has reported that, using shares of eBay stock as seed capital, Omidyar and Skoll established the eBay Foundation to fund a community center for San Jose's at-risk youths. Valued at $2 million less than a year ago and spurred by eBay's meteoric success, the foundation is now worth ten times that amount.

Although much of the nation's new wealth is a product of the technology boom, eBay is one of the first online commerce companies to use its revenues charitably. "We recognized that our community has been such a strong part of building eBay that we wanted the community to benefit from the stock offering as well," says Skoll.

eBay's foundation is managed by the Community Foundation of Silicon Valley, one of the technology industry's primary sources of charitable donations. Peter Hero, Community Foundation's executive director, wants the eBay fund to set an example for other members of the Internet industry. "We certainly hope this serves as a precedent," he says.

Other online commerce companies are already following eBay's lead: Netcentives of San Francisco is donating funds to its newly-established Entrepreneurs' Foundation and rewarding World Wildlife Fund donors with frequent-flier miles.

In addition to funding the San Jose community center, eBay is also supporting the Friends of Farm Drive organization and the University of California's University Research Expeditions Program. The program sends elementary school students and teachers on research expeditions. Executive director Jean Colvin says, "[eBay] is making the difference between having a program and not having a program."