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Corporate Foundations

Benefits of the New Corporate Foundation Format

The American Foundation 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 - 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.

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.

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