Well welcome everyone to another abundance group trust advisor training. Ben, do I have week? 11? Correct? Or is it week 10. That's what I thought. And today, and next Tuesday, we are moving into training on foundations. So if you guys think back to our first three weeks where we talked about structure, you know that there are four main structures. And then there are four more main structures, the only difference being the addition of a foundation. So you can tell me, when is it appropriate for the client to be using a foundation?
Is myself funny, but I think everybody should have a foundation?
Well, you and me both.
Any type of w two income?
Yeah, the only way to mitigate taxes on w two income is to use a foundation.
What other reasons?
The other super obvious one is in the world. In good in the world? Absolutely. I'm
slowing my mute button.
Yep, totally agree, Scott. Doing good in the world is another really good one. And along with that, not just doing good during their lifetime. But foundations have perpetual existence, they literally have no expiration date. So being able to do good for even longer than the personal trust or the business trust. And know that because it has perpetual existence. If the only beneficiary and a personal trust or business trust is the foundation, well, remember, they both lasts until 21 years after the death of the last heir to the last beneficiary. There's no depth of the foundation, and therefore they now have perpetual existence, too. So that's another good one. The other really obvious one has to do with when they have a business trust, with active income going through the business trust. When they have active income, you're gonna have that portion of active income that passes through to the personal trust. In the end, I've never seen, I've only seen one or two instances where it was below 12 to 18% of the net profit that was getting taxed. Until I started having clients get foundations with a foundation, because both the business trust and the personal trust can donate up to 100% of its income and write it off as a charitable contribution. Someone with active income flowing through the business trust can still get to a zero sum tax liability by utilizing the foundation with the combination of the personal trust and the business trust. That's why I call it the trifecta package is like winning the trifecta. Since all of you have heard me talk about foundations for quite some time, before I actually get into how to implement a foundation. Anyone have any questions they've always wanted answered about the trifecta package and using the foundation with the other trusts.
Can the foundation work outside of the United States?
It can, but it depends on what you mean by that. So it is a US based foundation, which means it is tax exempt here in the US. It is tax exempt because of sections of the Internal Revenue Code that allow foundations to be tax exempt. The foundation can do good work anywhere in the world. But if the client is being taxed in another country, let's say they're in the UK, a US foundation may or may not have tax exempt status when it comes to other countries depends on their tax code. So answers really it depends. But the foundation can work anywhere in the world. That's not an issue. Okay, and we have client foundations working all over the world now. Cool. So that's awesome.
Would that apply to the trust as well? I have some people in Portugal that are interested who are American. That's why I'm asking.
Absolutely. In Portugal for certain is a common law country. So the trust can definitely be used in Portugal, they will definitely provide asset protection in Portugal, because it is a common law country, I'm not certain whether it will or will not mitigate Portuguese taxes. Because it's an American citizen who has a US based businesses, the trust is going to help with all of the IRS tax things here in the US. And it may help in Portugal, I just can't guarantee it. And the foundation, because he's a US taxpayer, it's going to be a US based foundation. And it's still gonna give him the same tax mitigation benefits that it would otherwise have had, even if he's operating that foundation in Portugal. Now, there may be some additional filings in Portugal, he would need to look into that with an accountant from Portugal. So, there are several different types of foundations. Ours is a private family foundation structured as a charitable trust. There are other foundations that are structured as a corporation, which means they start out as either C corpse, or s corpse, and then seek 501 C three status. There's a big difference between the two kinds of foundations. The corporate foundation is a public foundation. And it is used for creating what's called an operating foundation. Meaning it's actually going to go out and do the projects, its primary way of being funded, is through donations, it can go out and solicit donations. In a private family foundation structured as a charitable trust, it is called a non operating foundation, or a non operating Association as the term in the Internal Revenue Code. It can receive donations from other people, and other people can still receive a charitable deduction for making a donation. But there are lower thresholds for donating to a non operating foundation than if they were donating to a public foundation that's considered an operating foundation. I believe that with an operating foundation, they can donate up to 50% of their adjusted gross income annually. With a non operating foundation, they can only donate up to 30%. With both the personal trust and the business trust in both types of foundations, it can still donate up to 100% of income. So just be aware that there are differences out there in the operating foundations, or the operating associations that are corporations. I see a lot of downside to them. Because as corporations, they must have a board of directors, it's not optional. And that board of directors could actually decide at some point to kick the founder out of the foundation. Well, I don't want to have to build my foundation, funded with mainly my money, and then have someone else controlling it to the extent that they could kick me out. Which is why our private family foundations that are set up as charitable trusts becoming non operating associations are so attractive. The client is the founder and the trustee. And as the founder and trustee, there's nobody else above the client that could kick the client out of the foundation. That's a beautiful thing. And it stays that way for generations to come. The ultra wealthy will sometimes have both kinds of foundations. Then the non operating Association, the one that's the Charitable Trust, donate to their operating Association. That's the corporation
totally allowed.
So what do you do with a non operating Association? In other words, a foundation structured as a charitable trust. You can do pretty much anything. If you go through the trainings for the Foundation, which all of you should do is, you're going to see that. Well, the foundation really is the vehicle for doing good in the world. Used in conjunction with our trusts, it is a leverage tool. It's way bigger than just giving clients a vehicle to do good. It can help them make more money in their for profit business, they can take loans from in a division of the business trust from the foundation, so that they can open a new business start a new real estate investment project, lots of different things they can do to use funds in the foundation to grow the for profit business. Advertising grants are probably the number one biggest thing that can really help a for profit business. foundations can qualify for advertising grants, Google offers up to $10,000 a month, YouTube, Facebook, Instagram offers similar amounts. That's a really huge amount of advertising. Even if we just had the Google advertising it $120,000 A year. For most business owners who are used to paying somewhere between 20 and 30,000 a year and paid advertising $120,000 is more than they can handle. Their business would scale and grow too fast, they couldn't handle the influx. So that's a great leverage tool for the for profit business. Now, setting up the foundation is relatively simple and painless. We do not do it in house, I have thought long and hard about whether we should do it in house. And I've decided not to mainly because we have an affiliation with a group called the stewardship Institute. The founder is Rick Scott. And then the head of operations is Charles Hooper. Rick is actually a consultant to the IRS on non operating associations. He's been doing this for 30 years. And as you'll hear in the trainings, he is so knowledgeable, way more knowledgeable than I ever thought I could be about how to make use of foundations in growing your for profit business. He has so many brilliant ideas about it. And the way he operates foundations is just mind boggling. So because of that, I decided, You know what, although we can have our own charitable trust, I can't duplicate what Rick has. So we simply make a little bit less money. And we do things through an alliance with the stewardship Institute. Rick did teach within the whole training with me, as did my good friend Sherry Watson. Sherry is the founder of Fana Pf ama.org, which stands for people for a new America. People from New America is also a nonprofit share.
Sherry's role, though, her claim to fame is that 30 years ago, she was one of two individuals who actually went and got the Americans with Disabilities Act passed through Congress. That's a big deal. I mean, a really big deal. So she has since then gone on to work with all different foundations. Her client list is like a who's who in corporate America, seriously, amazing. Warren Buffett Bill Gates. Jeff Bezos isn't there yet, but she hopes someday to work with him on his foundation. Many of the big rock groups clean for example, most of them have foundations and our clients have Sherry's she really gets how to use foundations as a leverage tool to grow for profit businesses. And she also taught alongside me and Rick in the training podcast. So do listen to that when a client makes the decision to move forward With a foundation, first thing they're gonna do is exactly the same as what happens with personal trusts in business trust, they have to complete the application or new client questionnaire. We call it an NC Q for short. And it's a very easy application, the answer a couple questions. Do you want to be on the Board of Trustees and add the relationship of each trustee to the founder? Well, the client is going to be the founder, usually their family members, or their board of trustees. Even their kids can become part of the Board of Trustees. And I encourage their kids to become active in their foundation. It is great to take teenagers and help them understand what it means to do good in the world. I mean, holy cow, that's awesome. I would love nothing more than to have kids be a part of our calls on a regular basis. But then use the parents foundation or the Family Foundation, really, to be able to go out and do good in the world. So that's a good thing. And they're usually on the board of trustees. Then what do you and your family members want to name the foundation? Next question, which workshop will you and your family members be attending? That is not our workshops, those are the stewardship Institute's workshop. And because of COVID, they're on hold at the moment. So we just put TBD for to be determined, what is the name of the individual or entity that is the founder of the foundation, you can have a trust as the founder, I recommend it, it should really be the head of the family. Then IRS authorization for obtaining the private family foundation EIN number, and I just leave that blank because either Ben or Julian will work with a client that gets the information needed to set up the EIN number. Then they put in the amount they paid. And then they just sign it and send it in. And they are done. So that's as easy as I mean, really easy, simple way of doing the new client questionnaire. Next, we have so now they sent in the new client questionnaire, what happens next, we then send that on to the stewardship Institute. They have been working really fast lately. And typically somewhere between seven and 10 days, they're gonna find a FedEx box at their doorstep with a trust binder inside of it. It contains the charitable trust. But it also contains a lot of other really helpful training materials. There's a booklet inside the front fold. And that booklet, I think it's probably 60 pages or so. Then if you've got your copy of that booklet handy, and you want to show it feel free. There's also information on how to get the IRS determination letter.
I'll talk more about that in a minute. There's tons of training in there in written format for all different kinds of things, including how to get grants and why the IRS set this up and how it works and what you can do what you can't do do's and don'ts and that kind of stuff. So they get a nice package. It's not just a six page trust. It also contains things like their bank resolution, the a copy of their ein letter, the SS four letter from the IRS. When they get that binder, they need to get it executed ASAP. And it reached out to Julie they'll probably have to scan it in because I don't get it in digital form. I wish we did. Julie make a note that we need to reach out to Charles and Rec and see if we can't make that happen. That will save you so much time. But they get with Julie they execute the foundation. They also sign and get notarized their bank resolution and then they take the bank resolution and the assets for letter to the bank and open their bank account. Prime Alliance does do bank accounts for foundations. They can also use Wells Fargo will have a lot less hassle getting bank accounts for the foundation. And then you do for the personal or business trusts. You want them to get set up with that bank account sooner rather than later. Next, you want them to start going through the foundation training podcast. That podcast is going to be at abundance group.com forward slash foundation podcast. But net script.com forward slash foundation podcast. This it sorry, I thought I had it open I just gotta find it let me pause real quick so I can go find it there we go I gotta stop this chair and reshare Hang on.
silly thing
Okay, so this is the foundation podcast. The Sneak Peek training is a little over a year old training called Week One is where they want to start, because the sneak peek is really going to sell them on the idea of a foundation. So if you have them, go to training comm number one, it's going to help walk them through, what do they need to do to create their mission statement, their mission statement is really important. And they may want to just brainstorm ideas about it with their trusted advisor. That mission statement needs to be broad enough to encompass many different ways that they might want to do good in the future. Rather than making it so narrowly defined, that they can only do one thing and not anything else. They need to be able to get that mission statement written before they can apply for their determination letter. It's part of the application for the determination letter. So they gotta get that done. But there's a whole formula, Rick does a great job of walking them through that formula. We then go through some examples of mission statements. I forget what Rick's is. But I remember being really impressed at how well done it was. Because it is very broad and very specific at the same time. That's going to be training comm number one, training comm number two, really gets into the meat of the training. So I want to go through this workshop book, then I'll get you a copy of this. So we can include it with the trust advisor trainings today. Perfect. Let's see if I can make this any bigger.
Come on,
it's not gonna let you make it bigger.
So they do a really good job in their materials. And this is from the workshop. They challenge people to go out and do good to blank to a place where once blank arrive, it is well blank the trip. I don't know why that quote is written that way. But I think Rick uses that as an example of writing a mission statement. It's a fill in the blanks formula kind of thing. And the opportunity with foundations is so huge. That if they do it right, they're really going to be able to not only use it during their lifetime, but long after they're gone. Wow, that really didn't come through well in the email that he sent. So it's about charting a new course. It is a paradigm shift no different than the trust's are. What I mean by that is thinking about running a foundation. It's exactly the same as it was when it came to the trust. First 30 to 45 days it felt hard, it felt overwhelming. And one morning they woke up and went, oh gosh, what was I doing is so much easier than I thought. Same things gonna happen with the foundation. anywhere they go, they should be representing their foundation. The way Ben and I are doing it, I bought us necklaces are the cofounders of abundance for all foundation. Our logo is called a shuffle symbol. It's a Hebrew symbol from way back in the old days. And it's a symbol of abundance and prosperity. There was an artisan in Jerusalem, that Han makes these necklaces, using the shuffle symbol. We wear our necklace, everywhere we go. And I get asked about it all the time. And it's a beautiful opportunity for me to talk about the abundance for all Foundation and the good we want to do in the world. Anytime you can find ways of living your foundation, it's a beautiful thing. I've had people who say, Wow, I want to help, I'll say okay, we'll get back to you. In the training podcast, you will find a link to Amazon, where I was able to get receipt books created. And they've done with the name of abundance for all Foundation. And then literally a charitable gift receipt book. If someone wants to make a donation to your foundation, it take out your little receipt book, it fill in the blanks on it. And it's a two part form. So you take the top part, hand it to them, you've got the bottom part for your records. That's a great way of being able to get people to make donations. But it really is a paradigm shift. Most people have never thought about going out and talking about their foundation everywhere they go. So thinking about it differently, is a really good thing to do. Rick can talk about this part, I am not so good on that. So I'm gonna skip over that. We want them to really think about getting that determination letter in the first 90 days. The sooner they get it, the sooner they can take donations from other people until they get the determination letter filed for it's an application for a determination letter. Technically they should not be taking donations from other people. So urge them to get that done. To get it done. They only need to contact Charles Hooper. Charles is at the stewardship Institute. Then if you could do me a favor and in the notes for today include Charles contact info that would be fantastic. If I can find Charles contact info, I'll read it out loud for you. I've got it I just gotta get to
it is
Charles is 91654332059165433205 and his email address is almost.
Stewardship group@yahoo.com.
Thank you. So glad you had that at that handy. And Steven, I just saw your email that would be Charles Hooper, that's going to help you with filing for the determination letter. So that is the number one priority. But if they're thinking about going out for grants, then with grants, they need to look like they are a real foundation. And what that means is that they absolutely positively need to look like a foundation. So to do that, they should really have a website. They should have some press releases out there. Those press releases should be things that are projects they're gonna do or things they want to accomplish in the future. They're literally telling stories So have them go do something small so that they've got a story to write about in a press release. Our marketing director, Jack comfrey, has been on the board of rewilding for close to 30 years now, I think it Ron helps to run that larger nonprofit that happens to be an operating Association. But Jack is also a great copywriter and a great web designer. And because he gets what goes on with nonprofits, Jack does do a lot of website and marketing work for nonprofits. So once they've filed for the determination letter, and they're ready to actually set up their online presence, have them reach out to Jack Jack at abundance. group.com is the easiest way to do that. And let Jack know that they're interested in setting up a website and online presence. Jack will do their website, it'll do a Facebook page, I'll do something on LinkedIn, I'll also set up a YouTube channel, he can help them with getting those press releases written, and even getting them disseminated. They just need to look like a legitimate organization, before they can go out asking for money, especially from grants. Otherwise, no one they go to for a grant is going to take them seriously. In today's world, even nonprofits have to have an online presence or they're not real. So encourage them to do that. In this workshop booklet, are bunches of facts about foundations, it would be a good idea for you guys to read through the facts that are here, just so that you can get familiar with them. They give you lots of things to talk about with clients. Especially if you're struggling to figure out what their next thing is to do. There's like 20 of them.
So that's important. There is a bunch of info in here about IRS codes and regulations regarding private foundations. totally geek out. There are so many IRS regulations that you can go after. Personally, I've read them all more than once. It's dry and boring. You don't need to go read them. But when clients ask questions, I will oftentimes pull this up, just so I can give them a quote of all you might want to look that up in Section blah, blah, blah, the tax code, it makes us look like we know what we're doing, if nothing else.
So
the four DS and don'ts of foundations, do blank donations to the foundation, you're allowed to solicit donations for the foundation. So go and do it. You can do that from friends and family. You can even do it from strangers. But you cannot have a our kind of non operating Association have more than 50% of its endowment, meaning the assets held in the name of the foundation come from private donations other than the founder or the founders family. So don't go after too many donations, unless you're planning on matching them with your own money is pretty much the message of that. You can hold assets in the foundation, a lot of people get excited about putting real estate under their foundation, because they're thinking they're gonna get their property taxes to become tax free. That can happen, especially if the foundation is buying a new property. But if you already own the property, and you want to convey it to the foundation in the way of a charitable contribution, more than likely, you're not going to get out of paying property taxes on it. Not with a non operating Association. But what you can do is donate real estate to the foundation, then have the foundation turn around and sell that property. It now keeps the money for it. And you can then turn around and buy a new property in the name of the foundation from the start, in which case property taxes probably aren't going to go away. Each state's a little different. Shari Watson from fana.org, you'll hear in the training podcast, she has an entire program that works with foundations and helps them get people to donate real estate or their foundation. She should, Sherry's organization then steps in, takes the real estate and goes and finds a buyer for when the transaction goes to close, it's a simultaneous close, it's a close from the donor to the foundation from the foundation to a third party, all in one closing, the donor of the property gets a really nice charitable deduction on their tax return. So the foundation in return gets cash instantly. Sherry usually charges 30% of the proceeds. She's agreed to do this for our foundations for 20%. To not have to worry about doing everything to sell that donation, oh my gosh, it's well worth the 20%. It's still free money to the foundation. And then you could turn around and have your client, take the money from the foundation and loan it to a division of their business trust. So the business trust can go out and buy a new property. It can also be that the foundation uses that money to do things like send the family on a family retreat or a site visit, for example. Both of them are things they can do with the proceeds once they're in the foundation. So that's a good thing. There is something called a 5% rule when it comes to foundations.
It is a fairly complicated formula. Rick walks us through the formula in the trainings. And what it is, is the IRS says that all tax exempt organizations must spend at least 5% of their endowment annually. That doesn't mean that all 5% has to be used to go do good work. It just has to spend 5% of the endowment. So let's say the client made a charitable donation from their personal funds of 50,000. And another charitable donation of 50,000. From their trust, all in the same tax year. That foundation now has a $100,000 endowment, depending upon how many days that was held. For now let's assume it started on January 1 to make Gina's math easier. That would mean that throughout that year 5% is going to need to get spent. So $5,000 is not a whole lot. Considering the fact that the foundation can pay for food, especially if they're sitting around the dinner table talking about good work or projects that their foundation can do. Given that the foundation can pay for things like life insurance, it can go out and do good work. It's not hard to spend that 5% annually. And filing requirements means filing for an EIN number that setup as a 501 C three from the start, then filing for the determination letter. And then on an annual basis, it does need to file a tax return. Now they're not going to have to pay taxes in most instances unless they have investments held in the name of the foundation. And those investments exceed a certain amount. If they do there is a chance that they will be taxed and of course this is a fill in the blank workbook. So that's number two of the don'ts. Don't make blank investments. It's not a specific type of investment. That's bad. It's it's the investment at all over a certain percentage of the endowment. Gina when you say investments there you talking about any and all like real estate? You know, that's a really good question. It's Shane yet today or Dave? Doug, do you know?
I'm not 100% Sure, but I'll look into it. But I don't know right offhand.
I think it's any and all but I don't think real estate is an issue as much. I think it's the rent release income that could potentially get you in trouble if it goes over a certain percentage of the overall in doubt, I'm out. But I will have to re listen to the training on that topic because Rick did talk about it. And the other don't is no self dealing expenditures. So what does that mean? Well, it can provide benefits for the trustees. But if you used it to go buy your Lamborghini, and or a boat, and you weren't using the Lamborghini or the boat for foundation business, that self dealing, it can't do that. It's not meant for that. But I have a client actually, who has a trifecta package. And he does a lot of wining dining and schmoozing to get large entrepreneurs, to make donations to his foundation. And he wanted to do that on a boat. So his foundation bought him a boat. And boy, he's gotten some nice donations into his foundation, using that boat. So you can do it in certain instances, just like the food. Let's say, I decide I'm gonna go to Ruth's Chris steakhouse for dinner one night, and it's just gonna be me and Popeye. I decide I'm gonna pay for it out of my foundations money. Well, that's gonna be self dealing, unless I talked to Popeye, about how he's gonna raise money for the foundation, but I doubt I don't want to listen. So on the other hand, if I go out with a prospective donor, and take the prospective donor to Ruth's Chris Steakhouse, then absolutely the foundation can pay for that meal. Likewise, I go to some other restaurant, my favorite Italian restaurant on Sunday. And while I'm eating, I'm writing up plans for a project that I want to do with the foundation foundation can pay for that meal, no problem. So it's all in the intent of the expenditure as to whether it's okay or not okay.
There is a follow under ordinary unnecessary expenditures is that would that falling under
ordinary unnecessary expenditures? I don't know that I've heard that term before.
IRS, I R. C, section 162. A allows you to do business and pay for the expense based on it being ordinary and necessary. Yeah, so it's okay. All right, I just want to make sure.
So right in the workbook, there is a definition of self dealing. In general, the Federal law prohibits acts of self dealing between a private foundation and a disqualified person, meaning it trustee or founder, the phraseology is also in the definition of excess benefit transaction. The definition of an excess benefit transaction is based on the contract law concept of consideration. It generally is a transaction in which an economic benefit is provided by an applicable tax exempt organization, directly or indirectly, to or for the use of any disqualified person, if the value of the economic benefit provided by the exempt organization exceeds the value of the consideration received for providing the benefit. So again, if you're gonna have your foundation, going by the boat, and you then go out and take prospective donors out on the boat, but they only donate 100 bucks, and the boat cost you 100 grand. That's probably an example of what that's talking about. So it needs to be you're using the boat to get donations of 50 grand 100 grand a million, and it goes to 100 grand for the boat. That's totally okay. So many things in the world of nonprofits are very gray, not so black and not so white. And it's all a matter of interpretation. Then it also has a definition of the 5% rule. The basic rule is simply stated each year any family foundation must make eligible
Trying to figure out what word that is. It would be charitable I bet. It's a typo. Yeah, eligible charitable expenditures that equal or exceed approximately 5% of the value of its endowment. It's missing the first letter of each of that paragraph each line of that paragraph. The word payout, well, convenient is somewhat misleading, and is blank is in the tax code that creates the rule, the word payout suggests grants or contributions, paid out to other charities. Other these grants normally make up more than 93% of the expenditures of Moses foundations. Many other expenses also qualify including all the things we just talked about. So
here we go program related investment, a loan or other investment made by private foundation to a profit making or nonprofit organization for a project related to the foundation stated purpose and interests. Program. related investments are an example to the to the general rule. Barring Jeopardy investments, often program related investments are made from a receiving a revolving fund, the foundation generally expects to revolve its money back in with interest, or below market interest, which then will be provided additional funds for other organizations. So that's a little bit about related invest program related investments. Jeopardy investments, the private foundation cannot invest any amount, income or principal in a manner that would jeopardize the carrying out of any of its tax exempt purposes. Managers must exercise ordinary business care and prudence. So that's an important thing to understand. So let's say there is an Ico going on, which is an initial coin offering in the crypto world, highly, highly volatile. Many people would even call it speculative, it's extremely high risk, your foundation should not be going out and investing in that ICO. It puts monies at risk at a level that could jeopardize the good work the foundation should be doing. And there's something called excess business holdings. Generally the limit is 20% of shares outstanding, a private foundation is permitted to hold no more than 20% of a corporation's voting stock or other interests in a business enterprise. These are permitted holdings. If effective control can be shown elsewhere, a 35% limit may be substituted to the 20%. So it can actually own an interest in a business is basically what that say.
One of the things that they do in their workshop is to have them take a few minutes and think about a person who was incredibly memorable to you. And his actions or words may have changed your life, write a short story illustrating who they were, and what they stood for, if you can summarize what they stood for, in as few words as possible. So things like I did a radio show online for over 11 years. And at one point, I was able to interview Frank, the founder of the Make a Wish Foundation. That made a huge impact on me hearing his story, hearing what he did to start the organization. It was phenomenal. Guys, I gotta take this I'll be back in three or four minutes.
While Gina takes this break, this is Julie. She and I have discussed what we would like the trusted advisors to do what we would like each of you You as a trusted adviser to create a description, or it or what? What are the duties of an advisor? And if you would, you could submit it to Gina and myself via email because we're trying to come up with a description. Julie, can you say that again, as part of that got left boarded out? Okay, Gina and I've talked about there isn't really written anywhere, what the description of a trusted advisor is. And we're kind of creating we're trying to create the description of what of what we all think a trusted adviser should do. You know, what are the duties of a trusted advisor. And if everyone that's in the program could come up with a with it one or two paragraphs about what they believe a trusted advisors job duties are, and if they could submit it to Gina and I via email
because it's something that we can give to prospective new, trusted advisors that are coming in, so that they have an idea of what is to be expected. And I know right now as trusted advisors, it's our duties are how do we want to say out wide and far ranging, far reaching?
Hi, Julie, thank you. Hey, Julie, would you provide you an email in the chat? This has actually been if you could do that, because I'm on my phone, and it's hard for me to put stuff in my chat. Thank you. It's Julie at abundance. group.com and Julius spelled ju L. I got it. Okay,
look, you got it up there.
Thank you. But no, this is just something in things are rapidly changing and evolving, and there's a lot more clients coming in. So there are going to be there's a lot more need for a trust for trusted advisors. Hey, Ben,
real quick, do you know where we could find and the replays the information that was put in the chat? I was trying to go back to some of the calls that I missed. And you guys mentioned a lot of good information that was put in the chat. I can never find it in the replay.
Where can I find that?
That's a good question. Did it not come up with the the videos when you were going back through the review?
No, not in the videos in that. And then I clicked on the on the other one that gives the whole transcript of the call. It does give the transcript but it doesn't give the information that was put in the chat
in the chat.
I don't believe on Zoom calls that the chat actually will will transfer over.
Yeah, I don't think so.
The administrator can go back to it. So you would have to go back and extract it then. If she's made you the admin of the Zoom link.
Yeah, it looks like the chat files completely separate. Like the video, the audio and then the chat file. So I'd have to download that separately and then upload it. I can start doing that from now on. For sure. Because you're right, that is helpful. There's a lot of times where there's quite a few links in the chat. Yeah, like
I was listening to one of the calls and you guys We're talking about a website or something. I could not find it in the chat. I have to go back to remember exactly what is it that I was looking for? I was looking for the chat,
like, Oh, sure. All right. Well, thank you.
Yeah, you're welcome. I'm sorry about that. I thought it was within the video, but maybe it is not. I guess I haven't looked for it though, either.
And Ben, every time I go in to try to find the podcasts for, for the trust advisor training, it tells me it doesn't exist. And is there. I know you'll send me a link every once in a while, but it's only to a particular one. It does anyone else have the same issues? Or is it only me?
Which link are you using? are using the forward slash advisor podcast?
Yes, it should be it should be abundance group.com forward slash? Okay. route.com forward slash trust. Advisor, correct.
No forward slash advisor podcast.
Maybe that's why add arrives or odd? Well, that's probably because I was putting trust in there. Thank you so much. Now that I figured out what I did wrong. Thank you.
It does populate that when you go to an advisor podcast. It does show trust advisor training podcast up in the in the link but it is just advisor podcast. Okay, fantastic.
Thank you.
Sorry about that, guys. That was the hospital. Okay. No, he's not okay. Now as oxygen levels are down in the high 70s. Yeah, I think he's got a septic. Honestly. Yeah, that seems to be his norm. Okay, let me get my head back in where we're at. So questions about anything I have talked about thus far. So the main reason Rick sent me this workbook to share with you guys is because it does have a section on mission statement. And the formula is actually got a formula. The formula for your mission statement is m equals v to the third plus Evie plus T. Wow, what a complicated formula. So M stands for emission. And V stands for vision. I don't remember what CV stands for. Core values. That's what core values. So read the section on mission statement. And it's gonna really help guide clients on preparing their mission statement. In a really succinct way. The mission statement should include purpose, one sentence that describes the end result an organization's seeks to accomplish. And for home, and business, a description of the primary means what programs actions, services, etc, are used to accomplish the purpose. So my mission since 2005, is abundance group trust seeks to touch the life of every person on the planet in a meaningful way. This is not something we can accomplish on our own. But by working with other entrepreneurs, small business owners and nonprofits, together, we can touch the life of every person on this planet. So it's specific, but it's broad. If the mission is to touch the life of every person on this planet, then that foundation can do pretty much anything. It's all within the touching the life of every person on this planet. That's what I've been all about since 2005. And that was long before I had a foundation. It's just what I do, and who I am more than anything. For me, it's always been about serving and strategically monetizing. As long as I've got a strategic plan for how I'm gonna monetize, I can just go out and serve to my heart's content. Don't think about money, don't worry about money and just serve because the money really will come back to you so much bigger than you could ever have imagined once service comes first. And that's what I want to teach every single one of our clients to do in both their for profit business and their nonprofit business. There are two parts of one hole in the mission statement. sent reflex
I had a quick quick question of if the client actually that has a foundation didn't receive this workbook, because this was one of the things that I was sort of asking about, you know, several weeks back and stuff. If a client has received that than just tell, Rick,
this workbook is a workbook on least for one of their workshops. Okay, this is not a workbook that would have been in the transplant package. Okay, if the workbook that's like a spiral bound, it's in the front folder of their foundation binder. If that is missing, they can do one of two things reach out to Ben, Ben can either get Charles to ship in one, which is what my preference would be. Or, okay, if that still doesn't work, then has a copy of that. And then can always go get it copied and sent to the client. But that is not what I have on the screen. Totally
different. No, no, I get that now. Okay, perfect.
In the end, so clients need to get clear on who they are, who they want to serve, who they want to be around, inspire, learn from an impact. Go ahead, though.
Hey, I was just wondering, is this write up that you've got here? Is this something that's in our downloads, or is this their sales material is something that comes with their package,
this is a workbook for a training that they used to do live every quarter. They're not doing it now. Because of COVID. Rick gave me this to be able to give to our trusted advisors, not to our clients.
Okay, so will we have this downloadable?
Yeah, so it'll be in the notes for today's call. Thank you. So again, this is what we want our clients to do. Get clear on who you really want to serve. Get clear on who you want to be around, inspire, learn from an impact. That's what it's all about. I mean, Lou, you are crystal clear. on who you really want to serve, be around, inspire, learn from an impact, are you not? Yes. And who is that?
It's both our licensees and the people that they serve, the ones that they're going to help with homeownership. And our licensees, we want to help them build a great life for themselves and their family in mission to help others as well
in mission to help others as well. That's the key for you. And it's the key for me as well. So that's what you're inspiring our clients to do.
What You Love Okay, I
think those are the only pieces I wanted to cover out of this book.
So the
documents for the Foundation are the trust agreement, which is in their trust binder, the SS four letter from the IRS that issues the EIN letter that's also in the trust binder, the 1023 form. That's the application for the determination letter. And the 990. PF is the annual return that gets done and filed with the IRS, like their tax return. The foundation's tend to be a lot more simple than either the personal or the business Trust, which is fantastic. Our clients don't need more complexity, right? They're overwhelmed enough. So if we can just help them to get those couple of things done. There's even a training in the foundation trainings. I did it with Dan Halas that talks about the online presence for foundations and marketing the foundation. Marketing The foundation is really a way to market their for profit business. This is something I've done for 25 years. I have clients go out and tell the story of the good work that they're doing in the world as a way to invite others to help do that good work by making purchases from their for profit business, because that's going to help further their nonprofit business. And by going out and telling stories about the good work as opposed to the products and services that the client sells, it really makes a big difference in their bottom line for the for profit business, as well as the nonprofit business. Someday, I haven't had time to do it in the last year and a half. But someday in the next year, my goal is to create a form of business trust, that can actually become certified as what's called a B Corp, but I want it to be called a B, business trust. B stands for benefit. Right now, there are companies that are B corpse. B corpse have a ton of requirements in order to become certified as a B Corp. It's a type of entity that became possible back in 2007. And it's been around you know, 15 years, and yet most people don't even hear about them anymore. They don't they've never heard about B corpse. Around 10 years or so ago, Fortune magazine puts out the fortune 500 list, they put out a new list for the first time in forever it's called the Change The World list. See if I can find it for you.
Change the World list is really here we go. A list of those companies who are out there doing good in the world. And it changes all the time. Right now. It's the vaccine makers is number one. And vision group number two Costco is number three Banco Santander that surprises that guy to me by actress, Mercedes Benz is on the list or number six Pay Pal Holdings is number seven, Bank of America number nine, these are all companies that are doing business in a different way. they've redesigned their business to not just be all about making money. But to really make a difference. Companies can apply to be on the Change The World list. When it first came out, the vast majority of the companies that made it onto the list, they were big corporations, big corporations only are B corpse in name only. Like saying you have a C Corp or an S corp. But the twist with a B Corp is that you must be out doing good in the world. Not just making money, Tom shoes is a B Corp. They don't get any tax breaks for being a B Corp, none whatsoever. all they get is the recognition that they're out doing good work in the world. And as a result of that recognition, it does grow their bottom line, I want to have a be business trust so that businesses that are out doing good in the world really can have the tax mitigation that our trusts have. And they can use a portion of what they save on taxes to help fund a foundation. So they can do that much more good in the world. It's something that is on my bucket list to accomplish. I don't know when it's gonna get I'm hoping within the next year. But boy, there are so many businesses that can benefit from that. And it would really give them an A much bigger reason for being like a B Corp. It's not just a marketing thing anymore, it becomes something that really allows them to do that much more good. I am all about that.
Hey, you know you with corporate souls and the description of that could that help you use that towards your B Corp
corporate spelled L A second word,
S O L E?
I am not.
If you search that maybe maybe just to add to your list, combined the wording of that the turn it into the B Corp. I think that might help you a little because the corporate so or go as far back as like, maybe a ministry of trust or almost, they're tax exempt. And like bishops, and a lot of them have that. Like when I've looked back at my land Pat, and I saw that on there, and then I started doing the research on that. Just throwing it out there for you to probably check that out.
I'll definitely go check it out. They can kill you. Welcome. That sounds cool. Okay, who else has questions?
No questions?
Oh, excellent. Um, the difference between what is the difference between a the church just a 501 C three versus the private family foundation, that's a 501. C three,
a church is not a 501 C three. So
they go through the state like during COVID. I noticed talk to five passes that were set up that way. And the only reason why they had to shut down is because they went through the state for the paperwork first, so they had to follow all the rules.
That's interesting. Hold on one second guys.
while she's doing that, has anyone heard of a 508? C, one a. That's 508. C is in cat. The number one and letter A is an apple.
And I have asked you not to see we could use that with the with our trust as well. She said she was going to talk to the guy. So hopefully she has an update.
Is someone saying something?
Thinks does that? Yeah,
we can't hear you.
Can you repeat that says that?
Yeah, absolutely. No.
Yeah. So Samantha asked if anybody knew about the 501 C one a. And I had asked you Gina about it before. And you said you were going to talk to the guy that does the foundation that the private foundation with you guys. Yeah. And I was just wondering if you were able to find out anything about it, I was
able to talk to him about it, he sent me to our CPAs and our CPAs haven't gotten back to me. There are so many different kinds of foundations. And that's a good example. So there isn't just a foundation, even within the world of private family foundations, there are many different types. Most churches are not 501, C threes. They're 508, something or another's. Still charitable, still tax exempt, still able to take donations publicly, but the rules change a little bit. The rules that you hear about in our training podcast, are very specific to a charitable trust structured as a private family foundation, that is set up to be a non operating association. So all the things I talked about from a leverage perspective that are possible are no longer possible if you get any other form of foundation.
Any other form of foundation other than a Family Foundation,
other than a private family foundation, that is structured as a charitable trust, that is a 501 C three and not any other kind of number. Okay. Like an operating association is different. And the rules are different in the things that we do, from a leverage perspective, do not apply to operating foundations or operating associations. Which when I first heard that blew my mind, actually, it's like you would think that they would get all the same goodness that the non operating associations, but that's not how it works. I
think it has to do with ownership that basically does owns the 501 C three nonprofit organizations, ultimately.
I don't think that's true. If it's a charitable trust. I think that's only true if it's set up as a corporation.
One of the The thing that mentioned about the private family foundations and the way that we do them, the asset protection in that nonprofit is stronger than in either the personal trust or the business trust. The reason that is true is this. unless somebody's going after the foundation is a member of the class of people that the foundation is designed to serve, they cannot reach the corpus of the Charitable Trust, not possible. So if the foundation doesn't pay its $25,000 visa bill, there isn't anything visa can do to go after money's in that foundation. Now, I don't want that to be used by clients to go do harm, or to do things fraudulently. But it is stronger asset protection for that reason. Okay, that's all I got for today.
Hey, Gina, you mentioned endowment, and I know that you had spoke of the endowment you created with your old school or
yes, in a nonprofit, the assets held in its corpus, because it's a charitable trust. And as a corpus is called an endowment. That's all I'm referring to is just the assets held within the foundation, whether it's just cash, whether it's other kinds of assets, it's called an endowment.
Okay, and then the other one, it's a different meaning, or is it a different word, and I misunderstood.
What I've been talking about isn't also an endowment with Notre Dame. It's what Notre Dame calls an endowment, which means I'm providing funds for something within the school structure. So in in my case, it's providing funds that they will then invest and grow, so that there's monies to provide scholarships for three people every year on an ongoing basis. That's awesome. Thank you. It is awesome. I'm very excited about it. That's my succession plan. That's how we will find successors long past me and Ben. Any other questions?
Gina, I was just going to share that for my friends in California. I have found someone that's been successful with land patents in California.
Oh, that's awesome. Yeah. And we're
making some connections around the country of people that have had success, because it's very much state based as to the success that you're going to have with it. Yep.
Not that has anything to do with foundations. But well, that's awesome. That's they were I did mention that. Yeah, thank you for that. Any other questions or comments?
But lose sounds like that land patent only applies to individual assets held under individual name? Not under the trust? That's correct.
Yeah, that's correct. And live for those who are interested in land patents. I have not yet thought of or found a way for that asset to now be owned by the trust of you know, that's just outside the trust. Yes. What
the land pen? Are you seeing the land patents these? past few years? Sure. Yeah, definitely. Remember, Lou, I spoke to you before I found mine. But I'm a part of the 13 original 13 colonies. So my the way that I found mine would be different from someone in Kenya.
And the downside of that is any income derived from that asset is now outside the trust too. So it is a trade
off. It is.
For one person, it's the right thing for the next it's not just have to be aware of it. Anyway, for next week. You guys have a choice. I can bring in a few foundational clients. And we can do case studies of how to implement and what they're going to do, etc. Or I can see if I can get Rick And Sherry here to answer foundation questions, or I can do a little of both. Oh, once case studies who wants Rick and Jerry,
they can share it? I like to both.
Okay, I'll try and do both. I'll see if I can get two people here as case studies, and then get Rick injury for like half the call. Okay. Yeah, that'd be great.
Do you ever get Charles was Charles on the 12 week training budget?
No, he was not. But Rick is the founder, Charles is undirected. So we'll have Rick. Gotcha. And for any of you who happen to call or talk to Charles at any point, one thing to know about Charles Charles is the International pickleball championship champion of the world, the whole world. He's 72 years old, and he won again this year. So ask him about his pickleball days. Anyway. So next week will be our last trusted advisor training that's formally part of the program. However, there will still be two more calls. Next call is going to be trusted advisor systems and what you need to do with them. And then the last call is the bonus call that I had talked about. And that's going through that handbook for trustees that galena brought to us. And we're going to invite clients in on that call, so that everybody wants to talk about that book can benefit from it. So we've got just a couple more calls, and then we'll move on and turn Tuesdays into fresh business trusts trainings, that will start from scratch, but not just for trusted advisors. So have a great rest of your week. All calls as normal the rest of the week. We've got tomorrow, and Friday and personal trusts. And remember, Thursday night is going to be our friend, family and friends webinar that I'm super excited about. Have a great, great rest of your week, guys. Thank you for now