At our January meeting, KWA Board members voted to create the King William Foundation, a 501(c)(3) supporting organization. Creation of the foundation fulfills several purposes.
First: The KWA Strategic Plan under the fundraising category states, “Exploration of endowment and planned giving.” By creating a separate entity, we can build up a fund that will earn interest, thereby reducing our reliance on the Fair as the primary source of revenues.
Second: By having our funds in the Foundation, the assets of the KWA will be lower, thereby making it easier for KWA to obtain grants.
Third: The Texas Alcoholic Beverage Commission (TABC) recently began enforcing their 2008 Marketing rules concerning temporary permits for charitable organizations. Basically, the TABC rule states that with a TABC permit the organization is considered a retailer, and therefore could have no “agreement or understanding” with the alcohol distributor regarding “sponsorship” rights, including signage, advertising or exchange of goods. About 50% of our sponsorships for the Fair come from alcohol distributors. Based on the different possible actions to take to address this situation, the board voted to create a 501(c)(3).
The paperwork for the King William Foundation has been submitted to the IRS and we are awaiting their decision. Please let me know if you have any concerns or suggestions. I would love to hear from you!