critical

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This page attempts to summarize the most important, post-Founder-death, critical things that the Trustees MUST DO to maintain our mission and the health of this Foundation.   Remember to also observe all personal  Fiduciary (click and then see point #7) trustee responsibilities.     Note - in March 2012, a decision was reached to dissolve this Foundation shortly after the Founder's death. More about this can be found on the Correspondence (see March 15, 2012 - note #3) webpage, but the page you are now reading has been amended (including crossouts) to include that 2012 fact.

Our fiscal year runs from July 1st to June 30th and progresses through each year in the following chronological order:

The format for all items on this page is:  everything is listed in or for the month that this should be done --- followed by an explanation of what you should do, with reference links (if any) to this website's applicable pages.

July - consider sending emails to our grantees specifying any changes we made or expect to have made to either our website (see the subsequent changes page) or other instructions on how grantees are to process grant information this coming grant year.  For past and maybe even the most current prior examples of these emails, see the Eudora email mailbox "FDN-CURRENT grantees" on the MPWCF computer (to find this, open Eudora, then click on Mailbox, then click on FDN-CURRENT grantees which  you will find at the very end of a drop down list that comes up of "Mailboxes".

July - finish year's bookkeeping and then prepare MPWCF's financial statements and place statements on the internet (**). For an example of this,  see our financial statement

July - review the Foundation's own financial statements with a critical eye, and ascertain what, if any, changes in direction must be pursued in the future.  One special challenge is the one presented in Our trustees page, item #6, regarding the endowment itself. The Trustees must make sure that the endowment does not deteriorate in value.  The amounts of value bequeathed by the Founder in the  years after his death must be kept intact (with additional growth in value equal to inflation).  The "norm" (and this should average out over every economic cycle of 3 to 12 years) should be calculated using the beginning value of the entire endowment as received from the Founder's Will, added to by both income and net appreciation to date, and reduced by almost no overhead but mainly grants to Grantees that meet the IRS requirement of a minimum (under current 2010 laws) of 5% of the prior year's endowment to a maximum of 10%).  The grants  will generally be at least as much as the prior year's grant to each Grantee (excluding any grants that are specified as "one-time" grants given this year or last year) and each year's grants might be slowly increased if the Grantee's situation warrants that and our endowment plans can accommodate that, too.

August - start the process (to be completed ASAP, but certainly repeatedly within every 3 years) of reading every page of this website using our site map as a source.   However, be aware that for various reasons, not every page of this web-site is included on that site map.  Therefore, you should read the TOP LEVEL pages shown as links at the top of the MPWCF Index page and then set about reading the sub-pages under each TOP LEVEL page as time allows.   Each of the 3 trustees should do this over a period of time as too many subtleties otherwise would get missed.  An idea that could work well for all Trustees is to have each of the 3 Trustees read 1/3 of the web-pages each year (on an alternating-between-them basis) so that each year all webpages are read.  Each Trustee can then report to the other 2 Trustees anything that that Trustee discovered as having been overlooked previously.

September-October - prepare MPWCF's IRS Form 990ez and submit it to IRS.   Place a copy of it on the internet(**).  For examples in previous years, see our previous Forms 990ez (recent copies of each year's Forms 990ez will also be on the MPWCF computer).  After completing Form 990ez, make sure that the "plan" for the following year includes computations for Form 990ez.  The reason I state this is that it is critical that any change (I don't today know the IRS laws that will apply after I die when the Endowment increases so much, but I do know that the penalties of non-observation of the "new rules" will cost fines and penalties and interest if you don't meet their regulations) in the MPWCF's status (total endowment, total grants, etc.) might bring you into a new status with new requirements.   As I write this, we are a "public charity" but I've been careful to keep us within that definition and not one of a "private foundation" where the rules are different and the reporting requirements are different, too.  Don't fall into a category where things change too much.  And especially watch the "private foundation" requirements, just in case, although it is probable that in the year AFTER I die (or shortly after even that), "private foundation" MAY no longer apply.   Even in the last year of the Foundations existence, prior to its termination, this should be done and, in the year after the termination (see Form 990ez instructions) you will have to either (x) check off a box or otherwise note that the Foundation has been terminated and show that last year's information.

November - expect last year's grantees to send their current email addresses, current contact information and a statement that they intend to continue in the coming year's grant program, as well as responding to certain other questions that are on the A1, A2, and A3 sections of the ongoing requirements page - see also annual certification and the links on it to other requirements in November and later.   See due Oct 31st for its formatted expectations.  Use these responses as the first indication of our own cashflow needs for the grants that we are to pay out starting in April. 

November - pay annual La Conexion mailbox fee (currently us$216) except in the last year of the Foundation's existence.

December - prepare for our annual Trustees meeting by reading and completely understanding the trustees page. 

January - arrange with the other two MPWCF Trustees a convenient-to-all date for our annual meeting which can be set for some time around February 28th.   Send all  of  them email copies of last year's minutes, this year's financial statements, and this year's agenda.  

January - Be especially vigilant to receive from each grantee a response to all of our last year's "comments" to see that each grantee is either doing what we ask OR at very least adequately and reasonably explain why they are not.   See also due Nov1-Jan15 for its formatted expectations.

January - See due Jan 31st for its formatted expectations.

February - prior to annual meeting, the Trustees are expected to review all input to assure themselves that all grantees are following the requirements set out by the Founder over many years.   The instructions on this website and the resultant quality of grantee input must not be allowed to deteriorate. Otherwise whichever (or all) of the SMA grantees that do not continue to meet our requirements may forfeit their shares to the "default grantees" (Rider and the ACLUF).  All of these requirements are specified on other web-pages, but the general concepts are most specifically spelled out on the founders will, legalities, Goals & Mission and beliefs pages .   Quite obviously, although all requirements on all web pages are very important, the following are the most important of them:
Complete Transparency as defined on the  transparency webpage is the most important thing for each Trustee to review for.  Any reader of any financial statement should not have any unanswered question after reading the financial statement.  He or she should KNOW what that organization is doing and how it is doing it.
Continuity as defined on the  continuity webpage.
All of what we expect of all grantees as shown on the due Jan 31st webpage (including all pages linked to that page)
We expect the transparent financial statement to disclose everything (and more, if necessary) shown on our financials-example and Disclosures pages.
Information from the Founder telling you his "most recent judgment of percentages of the total endowment", as discussed in "(note A)" of certified_grantees at the time of his death.
Although the replace founder page was written chiefly for the new Trustee who replaces the Founder, all new Trustees should read that page as well as the trustees page upon becoming a trustee and review it periodically in years thereafter.
Basically, all of the pages on the entire site map (but especially the supporting pages linked to each of the above pages.

February - a workpaper to aid the processing of the review might still be found in the MPWCF computer in the file named something like \mydocs\0foundn\grantees-all-active\statusSUMM-gy20xx.xls   Similarly named workpapers might also be found there.   The reason for this review (as opposed to merely accepting the Founder's "most recent judgment of percentages of the total endowment" is that there is a strong possibility that one or more of the SMA grantees will (as they have many times in the past) given efforts this current year that have deteriorated from past years.  In this case, you should take it upon yourself to REDUCE somewhat (based upon your judgment) the Founder's judgment percentages for this year's grants AND for the amount of the endowment to be passed on to the grantee at the time of the Foundation's termination.

February - hold annual meeting of MPWCF Trustees and discuss all problems and discuss this year's grants.  Some things you must consider are:

the total grants to be given as it is important to keep the MPWCF's total endowment growing at about 2% a year (this includes net gains as well as dividends, less grants to be expended) so as to keep the endowment equal, at very least, to offsetting inflation costs.  Obviously, after and during a "down market", care must be taken so that the cumulative 2% requirement is "caught up again" and maintained cumulatively.  The 2% is merely an approximation of inflation and the real inflation factor over the preceding years should be used instead.
all trustees (whether or not all trustees review all grantees' input) should be very involved with the requirements of the Foundation.  They all have fiduciary responsibilities (see point #7 on the trustees webpage) so all Trustees must meet the Founder's requirements

February - communicate the results of your intensive review of the grantees' recent input and send "comments" letters to all, including one that says, only if applicable, something to the effect that nothing of significance was noted by the Trustee's Review.   See each grantee's Eudora email mailbox for prior examples of this.  Even in the last year of the Foundations existence, prior to its termination, this should be done (and, also, copies of these letters to the SMA grantees should be sent to the USA default grantees for their followup next year).

February - make copy of updated and approved MPWCF minutes and place a copy of them on the internet (**)

March - send the two default organizations (Rider and the ACLUF) by email copies of all documents described in the last paragraph of point #14-Restrictions on the Actions of Trustees as shown on the Our trustees webpage.   Even in the last year of the Foundations existence, prior to its termination, this should be done as they will have the followup duties themselves (if they choose). 

April - start paying grants to all grantees that have been approved for grants this year (but only after they respond appropriately to any "comments" that need be rectified for the current year (as opposed to the prior year or as opposed to suggestions for next year)).  Even in the last year of the Foundations existence, prior to its termination, this should be done although THIS payment will be their share of the entire Foundation endowment..

April - prepare and send (to their online website) the Texas annual franchise report.  Recent year's reports are most likely on the MPWCF's computer.  I think that a review of their instructions would be more in order in the year just finished prior to the Foundation's termination.

Things that must be done or considered IMMEDIATELY AFTER The Founder's DEATH
arrange for replacement of the Founder as a Trustee (his Executor will be the first, but possibly only temporary, replacement)
The checkwriting signatories (in accordance with the by-laws) must be changed immediately (as Michael Wein no longer can sign checks) in a Board Meeting AND the brokerage (bank) must be notified so that they will issue new checks for your use.
re-evaluate all current grantees (including current status of the grantees and any promises made to potential new grantees -- see certified_grantees and other underlying web-pages
figure out HOW to distribute the stocks in the PSAs equitably to the Grantees upon later dissolution of the Foundation.  One way (a bad way) would be to sell all of them and convert them into cash. Do not do that. That thwarts my reason for getting the best yielding stocks available for both my siblings AND the Foundation (initially, but now also for the Grantees).  I know all grantees better than I should (considering!!!) and they are more likely to "invest" (but they don't know how to invest - they generally "loan" to banks, etc., getting interest rates rather than dividends plus normal appreciation - these stocks for the most part are ones where the "total return" (especially in an endowment fund) should be greater than "interest" alone would pay them).  I would prefer that they (except for Rider and ACLUF where cash is a better idea) keep the securities that I select for them instead of using them to buy other securities.  Oh, yes, I'd like them (if I don't already say so elsewhere in these "restrictions" to believe that these securities are restricted so that if they sell any security, them must simultaneously buy another security that meets the criteria that is stated on the trustees webpage in section #3 and #3A.
continue .... (there may be other things that have to be completed during this time) ...

Things that must be done or considered IMMEDIATELY BEFORE dissolving (closing down or terminating) this Foundation
provisions should be finalized (and then communicated to all grantees and to the two default USA grantees, as well) regarding the annual transmission of the SMA grantees'  annual input by email to the USA grantees in accordance with The Michael Wein Trust Agreement clauses discussing such transmissions after his death.  A copy of the applicable clauses should be included the first two to five years
Governmental organizations (at least IRS and Texas) must be sent the last of the annual reports that they require - read their individual instructions for any changes from the norm in submissions)
How and when to submit the last grant checks to each SMA (and USA) grantee as well as how and when to send the "share of the endowment" checks to each and lastly how and when to send the "very last" check to (who?) for the small amount of money in the Money Market Mutual Fund bank account due to the small amount of income from the small balance on the outstanding checks sent just previously to this time.
send Atencion an accounting (if only a summary) of the final distribution (to whom -  list grantee and amount) - and if this is more USA than SMA, you should quote the reasons for that as described on these webpages.
continue .... (there may be othr things that have to be completed during this time) ...

and PERIODICALLY - each Trustee individually and all as a group must also do the following:
review the entire MPWCF portion of http://www.mpwinsma.com/index-mpwcf.htm (this web-site) and all of its supporting pages, starting with the trustees page (read this page most often), and then its sub-pages (the underlying links) relatively often, and finally all other MPWCF web-pages from time to time.
review and implement where necessary, any new or changes in old laws that govern the MPWCF (such as those from IRS about non-profit organizations, or the Texas non-profit laws, etc.)
review our initial Form 1023 application to IRS for non-profit status to see if any amendments must be made or reported to IRS
be respectful of our own needs for continuity by performing annual reviews of our own trustees (and their possible successors), our own grantees (and their meeting of our requirements), our default grantees (and our communication with the ACLU Foundation and Rider University) and the default grantee's review of our requirements to them (see March above) prior to any defaults at all.
review our investments, but remember that the Founder stated specifically that trading or otherwise speculating in anything remotely like "portfolio turnover" is not a good idea.  He, and now we, believe in long-term investments in good long-term-history companies. Read more about this on the trustees page (especially see point #3 and #3a).  The best mix is a a lot of dividend paying stocks with some reasonable moderate growth prospects.   Absolutely NO "get rich quick" investments or speculations at all !!!.   Never, nunca, nein, no.
remember that the MPWCF was started originally as a "high percentage spent on our mission, and a low percentage of overhead" organization and has stayed as such during the Founder's lifetime.  Keep the overhead expenses to an absolute minimum.
review each grantee's treatment and education of their volunteers.  See point D of beliefs as well as point #2 of volunteers
look at each grantee's attempts (and results) as suggested on both internal control and audit procedures as well as point #D3 on the ongoing requirements webpage.
consider the possibilty of either us or any other SMA organization re-vitalizing the loans to women project under circumstances that may have changed in the intervening years.
remember to renew our MAIN web-site hosting at www.bravehost.com.  We currently have a 5-year subscription that expires on 2 Sep 2014.  And while they have the Founder's credit card number for automatic renewal, if he is deceased, they might REMOVE completely this web-site unless you renew  (OR CANCEL) early enough.  Remember that the Founder intentionally made the web-site unavailable to others so that it won't change unless he so instructs.  SO RENEW EARLY ENOUGH so that it does not vanish.   I also hope to provide a .pdf file copy (and a .htm file copy is already provided in the \mydocs\my webs\mpwinsma directory) of each page of the web-site for the MPWCF's computer in the days or years before I die.

(**) to place this information on the internet, see "INSTRUCTIONS REGARDING ALL SUBSEQUENT CHANGES follow" section near the bottom of the subsequent changes page of this web-site

 

“Underpromise and Overdeliver”

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