Let's Build a Legacy Together for Lake Beulah
By PLB Board Member Brian Bellow
The old joke about the inevitability of death and taxes is funny because it’s true. Most of us want to delay both as long as possible. But many of us also want to make a difference for those people and things that we care about, and Lake Beulah is one of these for me and many of my friends.
As a Protect Lake Beulah (PLB) Board member for seven years, the end of my service this fall has me thinking about giving back and protecting this gem of a natural resource for future generations. That’s why I have proposed the establishment of Protect Lake Beulah Legacy (PLBL), a separate entity structured as a 501(c)(3) to capture donations large and small (including bequests) for investment that will grow over time and provide an annual income to Protect Lake Beulah to fund its evolution and initiatives.
Why name it Protect Lake Beulah Legacy? Because legacy is more than just what we leave behind—it’s about making a positive impact on our loved ones and the world around us. It’s important to be clear that no member dues whatsoever for Protect Lake Beulah (PLB) would ever be deposited with or used by Protect Lake Beulah Legacy (PLBL)—they would be completely separate financial entities by law and the tax code.
So how would PLBL work? First, let’s list the key characteristics of a 501(c)(3), which is a type of nonprofit organization recognized by the IRS as exempt from federal income tax. These include:
• Exempt purpose: it must be established and operated for tax-exempt purposes (like the educational and charitable work of PLB)
• No private benefit: no part of PLB Legacy’s net earnings would ever be used to benefit any private shareholder or individual—they would all flow to Protect Lake Beulah
• Limited political activity: this would contrast with the separate entity Protect Lake Beulah, which was specifically set up with the ability to take political positions for its mission
• Tax deductible donation: a significant advantage is that donations made to most 501(c)(3) organizations are tax deductible for the donor, and this would be the case for Protect Lake Beulah Legacy
Our vision at Protect Lake Beulah is to research and find a local attorney who will help us set up Protect Lake Beulah Legacy as a 501(c)(3) entity this calendar year, or next at the latest.
• We will solicit local Board Members and Officers with strong proven financial acumen and a firm commitment to PLB’s mission to protect the lake for future generations, and then commence its operations.
• The Board Members will be responsible for the overall governance and strategic direction of Protect Lake Beulah Legacy as a nonprofit, and the officers will handle the day-to-day operations and specific administrative duties.
Now comes the fun part. Protect Lake Beulah has identified the Greater Milwaukee Foundation (GMF) as a potential partner for turnkey charitable operations. As background, the GMF has provided donors an easy, effective way to make a lasting difference in southeast Wisconsin for over a century. It is one of the oldest and largest community foundations in the nation. It’s also recognized by the IRS as a nonprofit charitable organization and as a public foundation.
Here’s how the GMF works (per its marketing documents): “There are more than 1,500 charitable funds within the Foundation, each established by donors to serve the charitable purposes they specify.” A useful example is the Greater Mequon Nature Conservancy. “Each year, a portion of each fund is used to make grants for the purposes specified by its donor. Over time, investment proceeds help increase the value of the fund and the cumulative impact of its grants.”
Protect Lake Beulah Legacy would become one of the 1,500+ funds that represent over $1.1 billion in assets with the Greater Milwaukee Foundation. Last year, the Greater Milwaukee Foundation made over 5,300 grants for more than $75 million to the 1,500 funds for their charitable purposes, or about $14,000 per organization. By my simple math, that means that each fund has approximately $300,000 invested in its fund, so that would be a good long-term goal for Protect Lake Beulah Legacy.
At PLB, we envision setting up the Protect Lake Beulah Legacy 501(c)(3) with the help of an attorney, staffing it with Board Members and Officers, and beginning to raise funds for its long- term growth. For simple math,
• let’s say that we were able to raise $100,000 to fund PLBL once established legally.
• Each year, that $100,000 would throw off approximately $4,750 in annual grant money to PLB for its mission and initiatives, while the principal would be invested conservatively and grown to increase the size of the annual grants.
• Further donations and bequests to PLBL over time would make this financial flywheel a virtuous circle of compounded growth for the organization.
So how can you help? As we organize and plan out the Protect Lake Beulah Legacy journey, if you are interested in becoming a donor, Board member, officer, or informal advisor, please get in touch with PLB Board members via our website www.ProtectLakeBeulah.org. Whatever your choice, you will have the quiet satisfaction of being intentional about the difference you want to make in this world. Your gift to future generations and the lake we love via PLBL will ensure that Lake Beulah is protected and enjoyable for many years to come.