Our legacy planner says that our current giving patterns (dependent on our income!) would suggest we may be able to give away $x million over the next 32 years–what the average person our age may reasonably be expected to live. If we follow his advice, however, we may be able to give $2.67x million! A wonderful “gear ratio,” from our perspective.

But is his plan workable?

My biggest concerns revolve around the proposal to shift our company to a 501(c)(3) (tax-exempt) structure.

I wrote to our planner a couple of hours ago:

I just went to the http://form1023help.com/_wsn/page2.html webpage where the author discusses the “pros & cons” of 501(c)(3) status. I am curious:

• How likely is it that we can really “prove” our sales are related activities (rather than taxable “unrelated” activities)?
• According to the list of 501(c)(3) responsibilities, a 501(c)(3) must “generate public support” for its activities. –What does that mean? Can sales of goods to lots and lots of people really be construed, accurately, as “public support”? Or does “public support” mean (and require) donations?

And now I’ve written to two people I know who either have (one of them) created almost a dozen for-profit and not-for-profit entities or (the other) have significant relations with dozens of non-profit/tax-exempt agency leaders. “We would appreciate not only your prayers but any insights and/or inputs you may be able to offer concerning our legacy planner’s proposal . . . and the questions his proposal has raised.”

I’ll be interested to see what they have to say.

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This entry was posted on Tuesday, April 8th, 2008 at 5:18 pm and is filed under corporate forms, estate planning, legacy planning, structures. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.