Over the years, Scott and Carol’s company has experienced
tremendous growth. Profit margins are at an all-time high, and
large orders are secured for the next 24 months. With ample cash
available for their personal and business needs, Scott and Carol
decide to begin a charitable giving program and reduce their tax
liability through the establishment of a company foundation.
But they are uncertain how to proceed and aren’t certain what
charitable causes they should favor.

After an initial telephone call to review their philanthropic ideas, Scott
& Carol invite advisors from the Legacy Group to their company
headquarters. After a brief tour, the following questions are discussed
in Scott and Carol’s conference room:

• What is the amount of the initial gift that the company can make
  to its Foundation?
• Does the company have a long-range financial plan that includes
  continued gifts to the company’s Foundation to ensure its
  future viability?
• Will existing company personnel such as the CFO oversee the
  management of the Foundation? Or will additional staff need
  to be hired? Will Scott and Carol provide management oversight
  or should a Foundation board of directors be established?
• How will the Foundation’s assets be managed?
• What charitable causes will the Foundation favor? How do Scott
  and Carol wish to make a difference in society?

Two weeks later, the Legacy Group delivered a written proposal that affirmed
that the establishment of a company foundation would be both financially
and philanthropically appropriate.

Legacy recommended that a board of directors be established to assist
with management oversight, grantee selection responsibilities, and the
development of Foundation by-laws.

Legacy also recommended a local investment manager with experience
in managing funds for privately held company foundations. Since Scott
and Carol strongly believe in the importance of higher education and
mentoring programs for inner city youth, Legacy recommended that the
foundation’s initial giving focus on providing scholarship funds for the
local university, restricted to inner city youth from financially disadvantaged
households. Legacy also made Scott and Carol aware of several church
sponsored programs that could benefit from a gift from their new
company foundation.

The Legacy Group was engaged to handle Foundation inquiries,
grant management, and other administrative work.

©2003 The Legacy Group. All Rights Reserved.