Archewell has made loss of £500k

[Viviennemary]

I don't quite get how those foundations work. But can't be great that It's made a loss of more than half a million pounds. Article about it in the Daily Mail.

@Cakester you have got the wrong end of the stick. Of course people can give each other more than £3,000 annually.

And the rules are different in the US.

In the UK you can Gift your DC up to £5,000 as a one-off wedding gift, without it being subject to IHT should you die within 7 years. But you can give them as much as you like! Just make sure you live a further 7 years.

Thank you, I totally got it wrong. You can give your immediate family as much as you want, but not any other individual. A reg charity you can gift to, but you can;t deduct from tax beyond a certain point, so you will pay tax on it.

Individuals may not claim charitable deductions for grants made to other individuals, foreign nonprofit organizations, or non-charitable organizations. An individual, however, may achieve these expanded giving objectives by first making tax-deductible donations to a family foundation which may then in turn, once certain IRS procedures are followed, make such grants.

The above is for the US. I think it means H & M wouldn't be able to give money to overseas organisations without paying tax, so the foundation enables them to do that.

1 hour a week work what do they expect? Quite a lot spent on staff salary and expenses including travel.

Yes, if they just donated anonymously to charity like most of us do they wouldn't get any headlines.

I get the numerous grants to grassroots organisations that Archewell supports. But why on earth is its biggest grant ($200k) to Georgetown university? It’s in the top tier of US universities and considered one of the most selective in the US (and whose financial statements shows it has more than $300m in cash and cash equivalents invested)

But why on earth is its biggest grant ($200k) to Georgetown university?

I initially thought it was a donation to a university in the Caribbean 😏. It would be interesting to understand what the donation was for, maybe a postgrad research programme.

Its on their website, you can easily find this all out there. Its to the Center on Gender Justice and Opportunity, Georgetown University Law Center

Under the leadership of Rebecca Epstein, the Center on Poverty and Inequality’s Initiative on Gender Justice & Opportunity develops innovative policy solutions and conducts groundbreaking research to help schools, hospitals, the juvenile justice system, and other public systems better support marginalized girls. The Archewell Foundation’s support is allowing the Initiative to deepen and expand its work recognizing and cultivating Black girls’ leadership, reducing discriminatory school discipline, and strengthening trauma-informed practices so that girls can heal and thrive.

https://genderjusticeandopportunity.georgetown.edu Our mission is to eliminate gender and racial disparities in education, healthcare, and the legal system. Our efforts are guided by the lived experiences of women and girls who are systemically marginalized.After ten years operating as an initiative of the Center on Poverty & Inequality, we are proud to become a standalone, independent Center within Georgetown Law.

I am so sorry, I don't know why that came out so big! What did I do?!

Sorry @cakester but that mega font actually made me laugh out loud.

1 hour a week work what do they expect?

Is this more or less work than any other founders put on their tax returns?

I know it’s not the purpose of the thread but I’m really impressed with the stated aims of the . I think it’s really important to ensure that judges (who I think the next grant is working on) understand their own biases when it comes to applying the law - it’s always great when there are initiatives out there to make things more fair. Can only be a good thing.

That's about inheritance tax isn't it. I've given away more than £3k this year and no one is interested, I don't have to tell anyone. If I die within 7 years and I'm over the limit there will be tax to pay but it doesn't mean I can't give it away.

Just as an example of giving money away. Frances and Patrick Connolly won £114.9 million on the lottery in 2019. They were reported to have given over £50million to friends/family/charities. No reports of the govt hunting them down to force them to take the money back.

Thank you.

So they do.

Seems odd to have that amount lying around unused for two years while managing to run up a loss in the second year.

Anyone know if there's a reserves policy? I can't find one.

They have reserves. Its a very typical thing for foundations to do. Theres no point spending money trying to fundraise or have it sitting in an account. You will see this same spending and reserve funds situation in almost any foundation of a similar nature. As I say it is the same with the royal foundation, which they used to be part of, which has a reserve of £7 mil or thereabouts, after a drop in income and spending being £5 mil more in income that year. Reserves policies will be available on request. They typically cover operating expenses for 12-24 months from what I've read, minimum. I don't get what's confusing abut the situation tbh, they have more than enough reserves to cover any shortfall in income in the current year.

Yes. But is there an actual reserves policy? (and why should anyone have to request it?)

ASFAICS most advice seems to suggest far less than 12-24 months in USA or UK.

Why would you need to know it, more to the point? What difference do you think it makes, whether they have 2 million or 8.9 million, in reserves?

Why would you need to know it, more to the point? What difference do you think it makes, whether they have 2 million or 8.9 million, in reserves?

Same reasons I want to know the shrouded financial ins and out of the rest of the corrupt cabal.

Do you not find it odd a couple committed to 'changing the world one act of compassion at a time' seem to be reluctant to part with vast holdings of cold hard cash to do it?

Can’t comment on Archewell as I know nothing about it, but generally speaking , wealthy individuals set up grant making foundations because they believe ( rightly or wrongly) that with that much money at stake, they need to fund according to proper guidelines and strategies to further certain aims that they feel strongly about ( eg Bill and Melinda Gates and malaria/ HIV). They will typically not make unrestricted donations ( when you give money to your charity they can spend it as they like) but will make grants in response to funding proposals put forward by the charity for a specific project according to their theory of change ( ie what they think will make a difference/ solve the problem). Grant making foundations are a critical part of the funding landscape because they provide a lot of visibility for charities as often fund on multi year agreements. Reliability of funding is v important as it allows charities to put in place plans for growth. Also because they tend to be theory of change driven they tend to fund a lot of similar projects which enables assessment of whether initiatives work or not.

seem to be reluctant to part with vast holdings of cold hard cash to do it?

Where are you getting this from? because the foundation has a large reserve? I think you're reaching for something negative tbh. That doesn't seem a valid criticism to me.

@CathyorClaire you won't be surprised to learn CHarles' Jubilee Trust has £24 mil in reserves!

I think you're reaching for something negative tbh.

Can you explain the putative negative? And outline the positive?

Thanks 🙂

Thank you for this helpful explanation.

you won't be surprised to learn CHarles' Jubilee Trust has £24 mil in reserves!

TBF I'm not.

The whole PR puffed lot require a far greater degree of transparency on their 'charity work' than we currently get.