Fixed Price Charitable Foundation Formation and Set-Up
December 1, 2009
Levenfeld Pearlstein’s Sports Law Group is pleased to offer a turn-key private charitable foundation product specially designed for professional athletes. The turn-key nature of the charitable foundation offers a fixed cost and simple implementation.
Why a charitable foundation?
Athletes, like actors and other public personalities, are often called upon to support charitable causes. Social responsibility is both a matter of what interests the athlete, as well as what is expected of the player by the public and his or her professional colleagues.
Charitable giving and social responsibility can be discharged in an ad-hoc manner with little to show for it, or it can be organized and proactively managed to the advantage of the athlete and the charitable organizations.
The charitable foundation offers the following advantages:
A foundation builds respect for the athlete among the public and professional colleagues.
A foundation gives the athlete’s charitable efforts credibility in the philanthropic community.
Contribution through a foundation have prominence among other donors.
A foundation is an effective way of filtering requests for contributions. Requests that are made directly to an athlete are more difficult to manage than if the athlete is able to refer requests to a foundation that has procedures for evaluating and approving charitable requests.
Funneling contributions through a foundation creates organizational benefits because contributions can be budgeted, accounted for and managed centrally, instead of on an ad hoc basis through an assortment of personal checking accounts.
A foundation provides an opportunity to involve family members in the athlete’s charitable endeavors.
A foundation allows an athlete to perpetuate a legacy beyond his or her playing years.
A foundation allows for tax efficiency. This may include accelerating the timing of deductions as well as achieving additional income tax savings by donating appreciated stocks and securities.
A foundation preserves control over charitable giving.
Foundations can be used along with sophisticated estate planning to facilitate the minimization of estate taxes for athletes who would otherwise have charitable objectives discharged through an estate plan
LP’s Sports Law Group creates charitable foundations specially designed for professional athletes. LP’s unique fixed fee turn-key approach allows athletes, their agents and their other advisors to do right by the athlete’s community in a cost-effective and responsible way.