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Lawsuit Settled in
Mississippi, Tennessee and Massachusettes |
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Endowment
Continues to Grow at Community Foundation of Northwest Mississippi
Recent grants made to the Community Foundation of Northwest
Mississippi matched endowed funds raised by the Foundation during
the past year. A grant of $68,703.62 was made to the Community
Foundation's general endowment.
Maddox Foundation also added $48,903.61 to its donor-advised fund at
the Community Foundation. Both grants were part of a $10 million
commitment by Maddox Foundation to match, dollar-for-dollar, funds
raised or committed by the Community Foundation to permanent
endowments. Maddox Foundation is also supporting the general
operations and capacity building work of the Community Foundation. |
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The Maddox
Foundation, a Mississippi nonprofit corporation, has reached a
settlement of ongoing litigation in Tennessee, Mississippi and
Massachusetts. The settlement will take full effect after review and
upon approval by the Chancery Court of DeSoto County, Mississippi,
and by the Internal Revenue Service.
As part of the settlement, the Maddox Foundation's former director,
Tommye Working, and the State of Tennessee dropped all claims and
have acknowledged the validity of the Maddox Foundation's move from
Tennessee to Mississippi. Ms. Working and the State of Tennessee
have also agreed that this settlement resolves any outstanding
issues and will not interfere with the Maddox Foundation's
operations and assets following the settlement
In return, The Maddox Foundation has agreed to deliver $55 million
to a trust, to be named the Dan and Margaret Maddox Charitable Trust
that will be based in Tennessee. The Maddox Foundation has obtained
the agreement of the State of Tennessee and newly formed Maddox
Trust regarding the following:
This new Trust will be operated pursuant to Dan and Margaret
Maddox's stated vision and intent,
This new Trust will be managed by a board independent of the Maddox
family, and
The new Trust will assume the existing charitable commitments
(approximately $11.5 million) of the Maddox Foundation in Tennessee.
The Maddox Foundation is pleased with the binding commitments of
this settlement and will continue its charitable activities in
Mississippi. Most important within this settlement The Maddox
Foundation has assured that the charitable wishes and interests of
Dan and Margaret Maddox will continue to be honored both in
Mississippi and Tennessee.
Organization & Operations
The Foundation’s assets have grown steadily during the past five
years under Ms. Costa’s leadership, while concurrently the
Foundation made significant contributions in both Mississippi and
Tennessee. Due to this significant growth, the Foundation was well
positioned to assign significant assets to fund the establishment of
the new Tennessee-based Trust and to continue its work in
Mississippi without compromising its mission.
The Maddox Board has full confidence in Robin Costa and her
abilities to manage the Foundation and its assets in a way that
meets the mission of the organization and serves its community
grantees.
The Maddox Foundation will continue as a independent foundation and
will be led by Robin Costa, who will serve as President/CEO and a
member of the Board of Directors. Other directors of The Maddox
Foundation Board also include Lanier Hurdle, a local real estate
developer, and Karen Sanders, a justice court judge. There are no
changes planned to the Foundation operations or the salaries of the
President/CEO or other staff, which is comparable to compensation
paid to senior level executives of similar foundations around the
U.S.
Value and Assets
The Foundation's 2005 tax return reflect assets with a fair market
value in excess of $114 million. Once the agreed upon settlement
receives both IRS and court approval, the Foundation will transfer
$55 million in assets to the new Tennessee trust. The Maddox
Foundation will retain all remaining liquid assets, real estate and
other assets. The Foundation will fully fund its existing
commitments of about $2 million to organizations in Mississippi in
2007. Per the settlement agreement, the new Tennessee trust, The Dan
and Margaret Maddox Charitable Trust will assume direct
responsibility for fulfilling the Foundation’s existing obligations
in Tennessee.
The Maddox Foundation has exceeded minimum payout requirements under
Federal regulations for several years. Annual, independent and third
party audits, as well as IRS review of Foundation spending and
investments demonstrate the Foundation’s compliance with all
applicable regulations.
Geographic Focus
The Maddox Foundation's primary geographic focus, for the immediate
future, will be in Mississippi with a special emphasis in the
northwest area of the state. The Foundation has committed a $10
million challenge grant to establish and endow the Northwest
Mississippi Community Foundation. It also remains committed to other
local charities, and to statewide organizations such as the
Mississippi Center for Nonprofits. The Dan and Margaret Maddox
Charitable Trust, will use the proceeds from The Maddox Foundation
to meet the Foundation’s existing philanthropic commitments in
Middle Tennessee and is expected to continue to focus on that state
and region.
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2006/2007 Grants – The Maddox Foundation
- $500,000 commitment to the YMCA of Middle Tennessee for
improvements at its Camp Widjiwagen facility.
- $125,000 to Hernando Youth Sports, a local organization that
operates recreational programs for young people, including baseball,
softball, football, and roller hockey; This grant also funded major
improvements at the Hernando Civic Center.
- $396,367 to the Community Foundation of Northwest Mississippi to
match endowment funds raised by the Community Foundation in 2006.
- $25,000 to support the Mississippi Center for Nonprofits.
Operations & Investment in Professional Sports
Studies show that the professional hockey team generated better than
a three to one return on the Foundation's investments in terms of
direct economic impact in the community. The team raises thousands
of dollars annually to support local charities and donates hundreds
of hours in community service to various projects. The Foundation
has initiated a program that allows nonprofits across the region to
generate funding and volunteer resources for their work through
partnerships with the team.
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