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). . . .

Just for “completion,” I should probably note: the president of _____, the accounting firm that specializes in non-profit accounting, replied to my email this morning. He suggested we could talk sometime next week, and he’d bring in an attorney who works with their firm in the specific areas that are disturbing Sarita and me.

I told him about the arrangements we are making with C____, the attorney that J____ has urged us to engage. “With what I have just said, I am wondering if it makes sense for us, yet, to hold a phone conference. . . . What do you think?”

I haven’t heard back.

My guess: they’re passing. At least for now. And that should be fine for me. . . .

J____, our legacy planner, wrote to me just before 2 this afternoon.

I have a few minutes before we take off. Would you like to arrange an initial conference call with C____ [the high-powered attorney J____ knows in Denver who specializes in 501(c)(3) issues] to talk about the nonprofit issues and the application process?

Let me know if you would like to do so and I’ll get that arranged when I get back to the office tomorrow.

By the way, when it comes to nonprofit accounting experts [the firm you contacted] is the best. I have known [the founder] for years. They do our corporate and my personal taxes.

“I’d be delighted to speak with C____,” I replied, “if the strategy really can work. Sarita and I would like to move forward.”

This evening, then, after he got home, he wrote, “Your conversation with C____ will be exceedingly worthwhile on all this.”

Then, not quite an hour later:

In the flight magazine on the plane it tells about a AAA minor league baseball team that operates as a nonprofit organization (in Memphis). The baseball team fulfills part of the nonprofit’s mission.

I think your “business” has an even more legitimate mission and purpose that the baseball team. Getting you to be a nonprofit will take time and experience, but it can certainly be done.

While he has been traveling, however, I have done further research. And based on what I have found, I don’t think I can accept his comments without reply. So I just wrote him: Read the rest of this entry »

J____ wrote me a quick note about 8:30 this morning:

I have just a few minutes before I have to leave for a meeting, but I think it would be helpful for our discussions if you categorize your questions/concerns/needed clarification in one of three categories:

1. Financial
2. Logistical
3. Emotional Read the rest of this entry »

What do you do when you become unsure of your counselors’ competency to answer your questions?

I try to find new counselors.

This morning, I thought of the accounting firm whose services are used by all the 501(c)(3)s with which I’m familiar. I looked them up on the web and just wrote them an email: Read the rest of this entry »

J____, our legacy planner, replied quickly to my email last night:

I just got your email. We have been in meetings all day long and have one more meeting tomorrow morning before we head home.

There is so much in your email, I would prefer to address these matters with you and Sarita by phone instead of trying to respond to them all in an email. We will be in the office on Thursday and Friday. Could we set up a time to have a conference call with all of us?

I replied, “Of course we can speak by phone! . . . And Thursday or Friday should be good. Please suggest some times when you’d be available, and I can confirm. . . .”

I then copied him (though in a different form) much of what I just posted.

!!!!!

I am definitely not comfortable right now!