Sun City Foundation - New Board Members

My opinion, for what it's worth is; any dollars donated or granted to the Foundation needs to stay within the Foundation for the purposes specified in their corporate documents.

Any Foundation dollars that are somehow transferred for use by the RCSC, especially for CIF, appears to me to be a simple laundering of money?

501-c-3 vs. 501-c-4?

 

No possibility of money laundering
How the RCSC handles all SCF funds:
BYLAWS OF THE SUN CITY FOUNDATION
ARTICLE VI. OFFICERS
SECTION 5. DUTIES OF THE OFFICERS:

(d): Treasurer. The Treasurer shall have general access to the financial records. Records of all the funds and securities of the Corporation, except such as may be required by law to be deposited with any state official shall be kept by the RCSC. The RCSC shall keep in regular books of account full and accurate records of all receipts and disbursements and shall deposit all money and other valuable effects in the name of the Corporation in depositories designated by the Foundation Board of Directors. The RCSC in cooperation with the Treasurer shall disburse the funds of the Corporation, taking proper vouchers for such disbursements and shall render to the President and Board of Directors a financial report of all transactions and the financial condition of the Corporation. All Foundation Bank accounts shall require two of the four officer’s signatures. Treasurer shall prepare the request for contributions from RCSC.

https://f2f286.a2cdn1.secureserver....SC-Foundation-Corporate-Bylaws-F-10-12-20.pdf

 

Interesting point of view and one that is pretty close-minded. For anyone interested, they should read the initial IRS letter of application for their tax exempt status and the response from the IRS. Hell, just for shirts and giggles the RCSC should publish both.

The reality was (those in the very beginning) saw the potential of this organization to be way more than paying rec fees (now called lot assessments) for those who had outlived their resources. It was sadly a myopic view of what they could have/should have become. Nope, nobody's fault, it was just shortsighted.

Foundations have enormous potential when fully developed. We elected not do do that. Tom's argument was the same as the foundation board expressed when i was the president; we're not interested in doing more than approving monies for delinquent members who couldn't afford to pay their fees. In fairness to them, that took a fair amount of energy and commitment.

Again, there's nothing wrong with doing that, but we had a couple of board members who were angered when am RCSC member donated large sums of money to be used for RCSC projects. They demanded we get a letter from our attorney who verified we could in fact do that without losing our tax status. He did exactly that with the theory being those dollars donated for projects kept our fees lower...which was part and parcel the reason the foundation was established.

As i said in a previous thread, the Foundation's core role of helping those in need to pay the lot assessments should never be lost. I've always believed the Foundation could and should be far more than what it was.

 

I will stay with my original statement, except that much of the squabbling took place during the exchange meeting.

 

Thought you were saying I was squabbling. I watched the video, was not there in person. But that being said my opinion is we don't need one more BOD of anything here. It will just create more squabbling than we currently have. That would be like all 9 of my Sicilian Aunts in the same kitchen at Christmas!

 

Just curious but, when all those dollars were donated on behalf of Lawn Bowling many years ago, did those dollars go directly to the RCSC or did they first go thru the Foundation?

I trust that the Foundation and RCSC will do the right thing, but it has to make you wonder why all the hullabaloo if it's really always been done that way?

 

If memory serves me Helen first just wrote checks to the RCSC but as time went by and the numbers grew she wrote them to the Foundation. It was at that point we asked the attorney for a legal opinion before we accepted them. The difference being those to the RCSC could not be written off for tax purposes while those to the Foundation could be...which in turn meant she had more money to donate.

 

I also only viewed the video and read much of the dialogue.

 

I am writing to clarify information about the Sun City Foundation as I understand it. This will be long so I need to put my comments in more than one post. I am one of the five RCSC Members who was appointed to the SC Foundation Board of Directors at their October meeting. Sun City is a wonderful place for us to enjoy the later years of our lives. I hope my service on this Board makes it even more so.

First, let me explain how I have been involved in various foundations over the decades. I have been on the Board of Directors of four Foundations, as well as several other 501(c)3 charitable, nonprofit organizations. I was a founding member of two Foundations and Executive Director of another. All are still active Foundations to this day. They are the Platte Valley Literacy Association, the Columbus Community Hospital Foundation, the Columbus Library Foundation and the Columbus Area Community Fund. All of the foundations that I served on had term limits for Directors, either two or three 3 year terms so I no longer serve on any of them. However I am kept apprised of the work they are doing through their annual reports and yearly requests for donations.

As a founding member and first president of the hospital's foundation, we started around 2001 with virtually no funds but the hospital provided office space, bookkeeping, etc. Nearly 25 years later that foundation now has over $100 Million in their endowment. That has been accomplished even after spending millions of dollars on hospital expansion projects (i.e. buildings), very expensive medical equipment, scholarships and educational programming for staff, patients and others. This year they opened a $52 Million Field House adjacent to our YMCA/Wellness facility. They received a $13 Million federal infrastructure grant because it was "shovel ready". The mission of the hospital foundation is to "build goodwill and financial support for Columbus Community Hospital" much like the SC Foundation is to benefit RCSC.Why can't RCSC benefit from sources such as this?

I have contributed to many other foundations over the years including our local public and parochial high schools, community college, state universities (both public and private), law schools, medical schools, my college sorority, AARP Foundation (which is separate from AARP) and the list goes on and on. I keep track of my contributions to these and other 501(c)3 organizations for tax purposes because they are all "charitable" foundations under the IRS regulations. Some organizations that are tax exempt but not considered a foundation would be the American Red Cross, American Cancer Society, American Heart Association, United Way, Boys Town, Girl Scouts, etc. I am quite sure they all have the term "charitable" in their IRS and organizational documents. "Charitable" means that people can donate to the Foundation or other 501(c)3 organizations to receive a tax deduction. The foundation can then disperse the donated funds for "charitable" purposes or other projects (i.e. buildings, programs, improvements to facilities). In the case of the Sun City Foundation, the donated funds can only be used to benefit RCSC as per the Articles of Incorporation. "Charitable" is a term used by the IRS to allow donations to the foundations to be tax deductible. Such was the case when a woman chose to donate $100,000 to upgrade and maintain RCSC's lawn bowling facilities. Those funds had to be given through the SC Foundation because RCSC, as a 501(c)4 nonprofit, is not considered "charitable" by the IRS. Personally I think the word "charitable" has been narrowly interpreted by the past SC Foundation Directors to mean only dispersing the funds for charity while the IRS considers the Foundation itself as "charitable". They honestly may not have known the difference. Check 501 (c) 3 tax exempt organizations on Wikipedia for more in depth information.

 

continued:
At the suggestion of the RCSC President, I was also one of the two women who approached the Sun City Foundation Board of Directors in January to request joining them and expanding their efforts to include writing grants and do other fundraising. The other individual also had extensive experience with foundations, including serving as the Executive Director of a foundation for over twenty years.

Over the four years that I have been an owner in Sun City, I have attended many of the RCSC Board meetings and watched the videos when I am out of town. With all of the discussion about RCSC having many needs and limited funds, I could see that the Foundation was the appropriate vehicle to help RCSC fund those needs and projects. When we sought out the SC Foundation's corporate documents (Articles of Incorporation and Bylaws), we could see that they were perfectly written to do that. Only their Board policies would need to be changed to include the new activities. That could have been done very simply. Both of us were excused from their meeting. It was only at the next monthly Foundation meeting, when I attended as a guest, did I learn that we had been "unanimously voted 'no' because we were not qualified" for the SC Foundation Board. They never explained what that meant or what qualifications they were seeking. They then proceeded to vote for a former RCSC Board member, Darla Akins, so apparently they thought she had the qualifications they sought.

I attended a few other of the SC Foundation meetings as a guest and asked a couple of questions. One was if they published an annual report which is generally done by the foundations I have known. No, the SC Foundation doesn't do that so no one knows how much revenue they take in, how much is dispersed, and how many people are helped. I was quite surprised by the lack of transparency. I certainly can understand that the applicants for assistance need to be kept anonymous but donors have an interest in how their money is used.

Since the financials and minutes of the Sun City Foundation are usually not found on the RCSC website, I went each month to the Corporate Office to fill out a form to get those documents after they were approved by the RCSC President. I wanted to keep abreast of what was happening in the Foundation's proceedings.

In all my interactions with the SC Board and staff, I have been respectful, polite and praised them for their efforts to help RCSC Members whose finances make it difficult to pay their annual lot assessments. My approach was that their current activities should continue but there is enormous potential for helping all RCSC Members by finding outside funding for other RCSC projects. I know foundations that do that because of my involvement with other tax exempt groups. Think about how universities get vast sums of money from donors to add buildings to their campuses. Many of the buildings are named after the major donors. At the University of Nebraska Medical Center, we have the new, modern Buffett Cancer Center, a beautiful building donated by family members of Warren Buffett. That was all done through the university's Foundation.

 

continued:
I was notified in early October that the RCSC Board of Directors had unanimously voted me and two others to join the Foundation Board at the Foundation's October meeting. I do not know the third lady. I gladly accepted because I believe this is the best way I can serve our Sun City community as a volunteer. I am a snowbird so I will be fulfilling some of these duties virtually at times. When I logged onto the October Foundation meeting, I learned that two additional people were joining. That is good news because there will be much work to be done. I sincerely hope the current Foundation Directors remain. I think they will find us cordial, committed individuals with experience in Foundations. Regardless, the financial assistance to Members in need will continue as promised by the RCSC Board.

Some of the letters to the editor and comments on social media need to be corrected and clarified.

Although I am on good terms with many of the RCSC Board members, I only know them through their official duties as Directors. Therefore, the accusation the "we are friends that will do what the RCSC wants" is mistaken. I am sure we will agree on many things but there might be divergent thinking on others.

One letter indicated that we will divert Foundation funding for a sound system for a new PAC. That's the first I had heard of that. Personally I have always believed that RCSC will have a difficult time funding a PAC without outside funding. That is yet to be seen but the cost may be out of reach even with the increased PIF. Just so you know, I think that having a PAC/auditorium/theater is essential to having a well rounded community. I will not personally benefit from having one because I am not in any performing group and only occasionally attend their performances. It is just part of the big picture for a community. Thus it could be a project that could find funding through the Foundation. One potential source could be the National Endowment for the Arts or the Arizona Endowment for the Arts. Are any of you ready to step up and make a large contribution to a Performing Arts Center? You might see your name on the marquee! Seriously there are so many small and large projects that wouldn't need to be on the PIF list for years and years before seeing fruition.

Another SC resident accused the RCSC Board of making a "hostile takeover". From what I can tell, the Directors of the Foundation have had ample opportunity to accept the Long Range Planning Committee's and the RCSC Board's recommendations to expand the work of the Foundation while guaranteeing the existing funds will be used to help pay the annual assessments for people in financial need. Two have resigned and several others are considering it. That is their decision but the RCSC Board is acting in the best interests of ALL RCSC Members. As one Director said in one of the meetings, "It is not your money, it is the Foundation's money". As a member of the LRPC wrote, "Why would anyone refuse more money?" We all know inflation will limit how much the existing PIF funds can do.

An article in the Sun City Independent reported that the SC Foundation had helped 38 people in October with their annual assessments. I believe that is incorrect. I have been told by an RCSC Director that they have helped 38 people this year which is more than they have helped in the past. There are eight applications pending. At one of the Foundation meetings that I attended, it was reported that 32 seniors had been helped with $350 of gift cards from the Santas for Seniors project. The extra gift cards were placed in the RCSC safe until December 2024. I hope you will continue to contribute to this project.

 

continued:
I believe the past and current Foundation Directors have been frugal with your donations, perhaps to a fault. Their commitment to helping others is commendable. Census data from 2022 tells us that a little over 9% of the 37,748 Sun City residents live below the poverty rate which is over 3300 individuals. https://datausa.io/profile/geo/sun-city-az/ Yet the Foundation has been helping less than 1% of those in the past years. I hope we can reach some of the others who need the help.

I have been perplexed by the controversy over this issue. Everyone is entitled to their opinion but why spread misinformation? I have wondered if the Foundation Directors have consulted their corporate documents. Anyone can find the Foundation's Articles of Incorporation, Bylaws, and Board policies on the RCSC website. Nowhere in the Articles of Incorporation or Bylaws does it even state that the Foundation exists to pay annual assessments. Instead it exists to benefit RCSC. The Foundation is a bit like the "Friends of the Library" to the Maricopa Library System. Their tax documents which are public by law can be found on the IRS website.

I consider this to be an opportunity for growth for RCSC. I welcome any suggestions from any RCSC Members or Cardholders. It takes time to develop relationships with potential donors, sometimes years. Most foundations establish an endowment where the revenue from its investments can be used for projects. Right now SC Foundation doesn't have one so we will be starting from scratch there. The Board will need to determine priorities and plan accordingly. We will need everyone's help.

Thank you for your time reading this lengthy post.

 

Wow! If only one-quarter of those 3,300 Members actually seek financial aid, that's still over 800 Members who the Foundation needs to help????

Just doesn't seem that there may enough dollars left to spend on other things?

 

Well said Janet, the misinformation being thrown about is tragic. A small handful of us understood the potential that existed and sadly was left untapped. I could easily point out several local organizations that have benefited from large bequests to their non-profit status, but it's not their fault they went out and got the money while we decided to survive on the margins and ignore what might have been.

The fact the existing board refused to take on new board members speaks volumes about it being about control, not growth or vision.

 

I did an internal cringe when i read the stats, only because being at or below the poverty level isn't the sole criteria the Foundation uses. For those that don't know, when making application for assistance, the member applying must submit all relative financial information requested. It includes investment income, pension, social security, stocks/bonds and whether your home is owned free and clear.

To past board's credit, they used to visit the members home and do an in person evaluation. To sum it up, there are lots of factors involved beyond whether they were under the federal poverty level.

 

I also realize that not all of the 37,000+ residents of Sun City are RCSC Members, such as the people who live in Westwood, Coyote Lakes and other areas. However, I didn't think I could find the data on poverty levels for just RCSC Members and Cardholders.

The Foundation Directors still do home visits. I have been told that the application process is lengthy and onerous but I don't know that for sure. I will be finding out. That might be why more individuals don't apply.

 

And the application also says, the applicant doesn't qualify for assistance if they are delinquent for more than 60 days passed their due date?

Now that's simply crazy!

I'm sure there are those out there who's pride has prevented them from seeking aid, but now that the assessment is going up to $650 along with all the other growing expenses that have accumulated, they now find themselves in need of asking for help to just live?

And if they're more than 60 days delinquent they don't qualify??????

Something is definitely wrong with that, and those qualification requirements certainly need to be overhauled. I bet there are several proud Members out there who could be years behind paying their assessment because they had to decide on paying their assessment or buying food or medications?

So what happens to those who don't qualify because their assessment is overdue by more than 60 days? Do we just tell them, "It sucks to be you?"

 

Or no one gives a shit about you as I was told

 

Tom and other readers,

This was talked about at one of the SC Foundation meetings that I attended as a guest this past winter/spring. The Board wanted to allow flexibility on the 60 day delinquency. One Director said, "We don't want to let that information to get out there." Our general manager also attended as a guest and he reminded them that the application stated no more than 60 days delinquent. Again, it was said, "We don't want to let that information out there", referring to letting it go in some cases.

I left with the impression the SC Foundation Directors wanted to set rigid rules but didn't want to abide by their own rules themselves. I don't know if the 60 days has been relaxed or not, but not everyone has "that information". Again, lack of transparency.

 

The Foundation Board seems in desperate need of understanding its own mission?

And what is that Mission? Yeah, we will help people with their delinquent assessments but we won't tell them? These are not the people we want running a charitable organization.

Look, I have no idea how many homes in Sun City have had liens placed on them because of delinquent assessments, but rather than going thru the legal process and expense of placing that lien on their home, it seems to me, if all the proper due diligence has taken place, the Foundation would better serve our Members if they would simply help pay the delinquent assessment rather than holding their one asset, their home, hostage?