Benefits of the Corporate Foundation
ADVANTAGE™ Format
The American Foundation of Utah can be your sponsor, and
help your company set up a corporate foundation in a
“public charity” or “support organization” format.
This new format, operating alone, or in conjunction
with a traditional private foundation, can:
·
Provide financial Planning opportunities
The new corporate foundation will create new tax and
financial planning opportunities for board members,
stockholders, executives, and key employees that are
not otherwise available under the “private”
corporate foundation structure.
The American
Foundation of Utah does not
give financial planning or tax advice. Please
consult with a professional financial planner or tax
advisor.
·
Increase
the value of corporate stock
Simply put, a $5-billion corporation is worth more
if a $1-billion corporate foundation goes with it.
Not only is there tremendous “corporate good will”
value, but all the other benefits described in this
list continue on to the buyer.
·
Better
name recognition
Charitable work gets a corporation noticed by
consumers and clients, leading to increased consumer
loyalty, sales, and new business opportunities.
·
Establish
strategic relationships
A corporate foundation will allow corporate
executives to network with like-minded business and
community leaders, and with government officials.
This will multiply valuable contacts and build
long-term strategic relationships.
·
Accelerate charitable vision
Corporate leaders are well positioned to give
much-needed direction to charitable efforts.
As a corporation builds its foundation, more assets
will be under corporate direction for increased
community impact.
·
Contribute more to charities
With a properly structured foundation a corporation
can attract more outside funding to support its good
works.
·
Build
corporate morale
Company officers, employees, and stockholders can
all participate directly or indirectly in helping
the selected charities. This increased community
involvement creates pride and loyalty within the
corporation.
·
Improve
quality of life for employees
Many corporate leaders are greatly concerned about
the quality of life and the environment in which
their corporations operate, and especially where
their employees’ families live.
·
Recruiting advantage
Nothing improves a company’s image more than
philanthropy. Studies have shown that the level of a
corporation’s commitment to community service is a
factor in attracting new recruits.
·
Create
business opportunities
Opportunities exist during buy-sells, mergers, and
acquisitions. A corporate foundation can help the
selling side of a transaction avoid capital gains
tax. If the corporate foundation is the buyer, it
can help the seller establish a deferred gift with
wealth replacement which not only helps the seller
net more, but can also result in the principle
payment reverting back to the corporate foundation
at the end of the seller’s lifetime.
Take Advantage of the
Opportunity
Most businesses don’t realize that creating a
properly structured and well-operated corporate
foundation can increase their bottom line profits
and stock value.
We estimate that fewer than 1% of all U.S.
corporations have foundations. This means more than
99% of corporations are missing out on excellent
opportunities to achieve significant tax and
financial benefits while directly impacting
charitable projects in their communities. And most
corporate foundations that do exist are not
structured to take advantage of the greater tax and
financial opportunities associated with “public”
charitable giving.
“A corporate foundation
can increase the value of any business.”
- Ben L. Schaub
The Traditional Corporate Foundation
Corporate foundations traditionally operate as
private foundations. They are typically established
and then funded with large blocks of corporate
founder stock, at or near the founder’s death, to
avoid taxes. A corporate foundation is, thus, a
charitable account that allows a corporation to
direct funding to selected charities.
Private foundations are
useful. However, as we will describe next, public
corporate foundations can offer even greater
benefits. The American Foundation of Utah can help any
corporation build additional foundation funds at no
cost to the corporation.
What We Can Do for You
The American
Foundation of Utah can help any business create and
operate a highly successful corporate foundation at
no cost to the corporation. We can also help
existing “private” corporate foundations implement
new operating techniques that will add value to
their current philanthropic programs. Whatever your
company’s situation, we would like to talk to you
about unique foundation planning opportunities.
Gift Allocation to
The American Foundation of Utah No Fees or Charges to
Donor Foundations
The American Foundation of Utah is a 501(c)(3), nonprofit,
charitable foundation. As such, we do not charge
fees for services. All foundations transfer 1% of
their foundation value (1/ 2 of 1% in the case of
charitable trusts) annually to the American
Foundation of Utah as a gift allocation. Investment charges
to foundations or trusts may vary depending on the
recommended investments
and/or investment advisors selected.
The donation allocation to The American Foundation
of Utah
first pays for the actual cost of administration.
Any remaining money is used to develop and expand
our charitable mission, which includes: promoting
and helping to create vast amounts of new and more
effective philanthropy, helping charities and
foundations with their organizational structure and
governance, operations, human resources, and
selected charitable projects.
We encourage those who believe in our charitable
mission to allocate more than the minimum percentage
to the American Foundation of Utah to help achieve our
charitable objectives.
What We Provide
-
As part of
our charitable mission to promote philanthropy, we
provide these services free of charge:
-
Structural
design and organizational documentation for new or
improved corporate foundation programs
-
Instruction
and initial support with the complete foundation
administration
-
Assistance with implementing a company-wide foundation
awareness program
-
Education of
corporate board members, executives, and key
employees about their increased and exciting
personal opportunities relative to this new
corporate foundation program
-
Training
board members, executives, and key employees on how
to recognize circumstances
or events that trigger opportunities for strategic
foundation planning.
