Los Angeles, CA – May 5th, 2009 – The nonprofit Edward Charles Foundation for Dissolving Charities was recently formed to assist dissolving charities recycle their assets back into the community. The Foundation is the first of its kind in the nation to offer this unique service.
Experts predict that one in 13 nonprofits could close their doors in 2009. Paul Light, professor of public service at New York University, said in the March 3, 2009 Philanthropy Journal, “About 100,000 out of the nation’s 1.3 million nonprofit organizations could go under this year due to the credit crisis and funding cuts.”
The Edward Charles Foundation was formed “to take the burden of dissolution off the shoulders of a nonprofit’s board of directors,” announced Foundation CEO Robert McKim.
“We seek to become the legal source to unwind a nonprofit organization, should that be required; and the firm of choice for nonprofits, and their lawyers and accountants. We work in an environment of transparency, honest ethics and the highest integrity,” he added.
The Foundation has developed a process that frees the board of directors from the work locating, negotiating and placing the assets of a dissolving nonprofit with another charity.
Many charities that are dissolving have assets which they are required by law to give to another charity, explained McKim. The assets of a nonprofit belong to the public and, therefore, must be recycled back to other public charities.
This is a time- and energy-consuming process for the board members and often is futile. Frequently, a dissolving charity is unable to find a nonprofit to receive its assets; or potential receiving charities are reluctant to accept assets from another nonprofit for no good reason. These phenomena make the dissolution of nonprofits impossible.
The Edward Charles Foundation will voluntarily receive the assets on behalf of the dissolving charity and at no cost or expense to the dissolving charity find a “happy home” for the assets – thus, relieving the dissolving charity and its board members of their financial and regulatory responsibility. The Foundation’s process for the effective liquation is to identify charities that can use equipment, vehicles or other administrative equipment and transfer the assets to them.
The Foundation provides a safe and temporary haven to accept and redistribute nonprofit assets. In concert with the trust department of a major financial institution, the dissolving charity’s assets will be placed in trust and will be redistributed to the assigned charity.
About the Foundation
The Edward Charles Foundation was established by Kent Seton, Esq., COO, and Robert McKim, CEO, to help recycle the assets of dissolving nonprofit organizations back into the community. Seton is an experienced attorney who for more than nine years has been the managing partner and founder of a boutique Beverly Hills law firm that structures the initial legal formalities in launching nonprofit organizations. McKim, CISA, CIPP is a for-profit executive and 25-year marketing veteran, who manages the day-to-day involvement of the Foundation.
Edward Charles Foundation is a nonprofit corporation organized and operated exclusively for educational and charitable purposes. “Specifically, this organization has been formed to provide three nonprofit services: educate the public on subjects useful to individuals and beneficial to the community; provide relief to the poor, distressed and underprivileged; provide the legal expertise and processes for charities that need to dissolve. Program administration will help the charities prepare to take advantage of these nonprofit services,” said McKim.
The Edward Charles Foundation can be found at www.EdwardCharlesFoundation.org or at 1880 Century Park East, Suite 315, Los Angeles, CA 90067; telephone 310.930.0066, facsimile 310.845.9094.
