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 »

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 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 »

And while I’m talking with people at Generous Giving about alternatives to 501(c)(3)s, C____, the attorney we engaged for–and then quickly sought to disengage from–our potential move to 501(c)(3) status, sent a reply to my “disengagement” email. As you may recall, I said, “Before we (i.e., you and your associates) go anywhere [with this idea of researching potential charitable purposes for a 501(c)(3)], . . . I sense I should raise a few questions that came up from a conversation I had yesterday with L____, our CPA.”

So here’s how she replied: 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 »

I “can’t believe it”!

I met with L____ (our CPA) today so I could sign all our tax returns. (It’s an annual affair. We have about a dozen legal structures, many of which require separate tax returns.)

Anyway. So we’re talking about “how’s life,” as we usually do. (I enjoy meeting with L____ as a casual friend as well as counselor, and we talk about how things are going several times a year.)

So he asks me: “What do you think of J____’s proposal?”

I grow thoughtful for a minute and then say, “I think, in general, it sounds like a great idea. But Sarita and I are really concerned about his 501(c)(3) proposal. . . .”

“B____ [our estate planning and structures attorney] and I are very much concerned about the 501(c)(3) proposal,” he replied.

(!!!!) “You are?!? . . . J____ said you guys were all behind the plan!” Read the rest of this entry »