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 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 »

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 »

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? Read the rest of this entry »