B____ [our estate planning attorney], L____ [our CPA], and I met this morning for our annual corporate meetings and strategy session. We discussed our legacy plans at this time. Both B____ and L____ were far more comfortable with the idea of us gifting our company to a DAF [a Donor Advised Fund] than changing it into a 501(c)(3) corporation.

They had a few key questions, one of which we were able to answer through resources they had at hand. Two key questions remain, however. (I’m sure a few more will come up. But these were the big ones that existed at the end of our meeting this morning.) Read the rest of this entry »

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I’m supposed to meet with our attorney and CPA tomorrow morning for our annual corporate meetings. While we’re talking about all of our structures anyway, I figured we should talk about our next steps in terms of legacy planning. What should we do, for example, with the 501(c)(3) proposal or alternatives (like the Christian Foundation of the Triangle LLC Wrapper concept)?

Last week I contacted the attorney at National Christian Foundation who has been assigned as our primary contact and asked her if she might help me prepare for tomorrow’s meeting by giving me insights into the kind of idea she has (or NCF has) that might replace J____’s 501(c)(3) proposal.

I just received her reply. Sounds interesting! Read the rest of this entry »

I’m astonished. It wasn’t even an hour after J____ confirmed the termination of our relationship when I suddenly felt new clarity to ask C____, the attorney he had recommended, to resume her research project or, in some ways, to start all over on a new project.

I wrote to C____,

As my wife and I have continued our researches into the feasibility of shifting our corporation into 501(c)(3) status, several things have become clear to us. Among them:

• The order in which we want to proceed with our broad-based legacy planning process.

And,

• Some of the questions we need to ask–including questions we need to ask of you.

In terms of order: we have realized that we want to continue research into the idea of shifting to a 501(c)(3) at the same time that we pursue other options.

As for the questions we believe we want and need to ask of you–for which we are happy to pay you the fees we agreed to: Read the rest of this entry »

I got hold of Alanna Linden at The Christian Foundation of the Triangle (CFT; in Raleigh, NC–thus the reference to “the Triangle“) yesterday. I asked her if they were still doing LLC Wrappers (since information about them seemed so sparse; the lone Google reference was merely an announcement of the impending release of the concept a couple of years ago). She assured me LLC Wrappers are alive and kicking.

Today she sent me a two-page summary of what an LLC Wrapper is all about.

First, a “case study” from Greenville, SC: Read the rest of this entry »

I just sent L____, our CPA, a summary letter explaining “where we are” in the legacy planning process. Most of what I had to say came from our weekend in Colorado Springs at the Generous Giving conference:

[While at the] “Generous Giving” conference, . . . I had the opportunity to speak with a number of counselors who specialize in the field of legacy- or charitably-oriented estate-planning and with people who have pursued, or are in the midst of pursuing, goals similar to ours.

I asked several of these people for their input on the idea of switching to a 501(c)(3) . . . especially considering–or “if”–there would be UBTI [Unrelated Business Taxable Income]. Read the rest of this entry »

Since I had his ear anyway, while talking with the serial entrepreneur at lunch, I asked him about our legacy planner’s 501(c)(3) proposal.

He didn’t like the idea. From a governance perspective, he didn’t like the idea. Having to report everything the way a 501(c)(3) is required to report it on the standard form 990: that doesn’t look too attractive, either. “But, honestly,” he said, “I really haven’t looked into the 501(c)(3) idea. . . . Your legacy planner probably knows something I don’t.

“However,” he continued, “you may want to talk with _______ of the National Christian Foundation. NCF has something I’ve heard about. Read the rest of this entry »

L____’s revelations yesterday have “just” consumed me. And made me realize I want to stop C____ from proceeding with her research . . . at least until I get some other questions answered first.

So I wrote to her: Read the rest of this entry »

C____, the high-powered attorney, requires us to sign a (four page!) “Letter of Engagement.”

I have been told about these things in the past. They’re a bit more than a formality. In fact, I’d say they are a lot more than a formality. They’re a contract.

Strange: I can’t ever remember signing one before, though I’m sure I must have. I’ve done quite a bit of business with attorneys over the years, and one or two of them must have had such letters. . . . But I’ve never seen anything quite like this one!

I mean, four pages! . . .

Ultimately, I think it’s all well and good. It is very detailed. It lays out pretty much every possible issue and contingency that might arise and explains what Sarita and I may expect as a result (of any particular issue or contingency: “If you do this, we will do that.”).

It’s good.

But it also “puts me on notice”: “We’re not in Kansas anymore.” Yipes! We are dealing with a big firm! At $310 an hour. And they want a $1,000 cash payment in advance.

Anyway.

I’ve requested our comptroller to issue a check to go along with the signed letter of engagement. . . .

I feel a bit like I’m in a roller-coaster when it first gets clamped onto the pulley at the start of the ride. I’d better be ready to hang on!

But we should get some good counsel about going 501(c)(3). . . .