The Corporate Foundation Advantage Plan
How a Corporate Foundation Can Make a Big Impact for Good in the World and Improve Bottom Line Profit
Benefits of the Corporate Foundation Advantage™ 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 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 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 principal 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 can help any corporation build additional foundation funds at no cost to the corporation.
What We Can Do for You
The American Foundation 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 – No Fees or Charges to Donor Foundations
The American Foundation 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 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 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 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.