News Release

Maddox Foundation Assets Valued at $100 Million

Court-ordered examination shows strength of Foundation’s asset management, continued legacy of philanthropic giving in Mississippi and Tennessee
Nashville, TN (Nov. 1, 2005) – A court-ordered examination released today by Tennessee Judge Randy Kennedy shows the assets of the Maddox Foundation are valued at $100 million, clearly refuting claims the foundation has been financially mismanaged.

Judge Kennedy ordered this examination of the foundation’s financial records as part of a pending lawsuit against the foundation and its president, Robin Costa. The examination was conducted by the Certified Public Accounting firm of Frasier, Dean & Howard, which filed its findings with the court in September.

“These findings confirm the financial well being of the Maddox Foundation and the management of its assets, which are valued at approximately $100 million,” said Aubrey Harwell, Tennessee counsel for the Maddox Foundation. “It also clearly shows that the claims by opponents of the foundation are knowingly false.”

These findings refute the allegations of foundation mismanagement and “looting” made in the lawsuit filed September 2004 by foundation director Tommye Maddox Working and Nashville District Attorney Victor “Torry” Johnson.

“After almost a year of ruthless personal attacks in this litigation, this report shows some of the facts behind the foundation and its management. The foundation is strong and its management is strong,” said Harwell. “In spite of the plaintiffs’ numerous false accusations, the foundation and Ms. Costa continue to serve the communities of Northwest Mississippi and Middle Tennessee.”

Harwell added, “This report raises concerns about the foundation's accounting practices from January 1, 2000 through December 31, 2004. Most of the concerns were for the period from January 1, 2000 through early in 2003. Ms. Costa addressed those issues independently, replaced the accounting staff from that time period and significantly improved the accounting practices of the foundation. Many months before the initiation of the action by Ms. Working and Mr. Johnson, the foundation had changed its internal policies to eliminate the use of chartered planes. Though chartered flights had been used by the foundation in the past, it was determined by Ms. Costa not to utilize them in the future. When used, however, it was used solely for charitable purposes and/or furtherance of the foundation’s exempt activities. We would note that more than a third of the funds expended by the foundation for chartered air flights involved fundraising activities associated with The Online Computer in Every Classroom Program that was successfully initiated and implemented in the State of Mississippi. These activities, along with the efforts of AOL and other corporate sponsors she contacted, raised in excess of $28,000,000 in cash and in kind contributions for this program that resulted in Mississippi becoming the first state in the country to implement it.”

The litigation involving the Maddox Foundation is working its way through the courts of law in Tennessee, where the lawsuit was filed, and in Mississippi, where state Attorney General Jim Hood subsequently filed a lawsuit to stop any transfer of the foundation back to Nashville.

Among their arguments, the plaintiffs claim that the foundation’s move in 1999 from Tennessee to Mississippi was illegal. However, in October, Mississippi Chancery Court Judge Percy Lynchard ruled that the move was indeed legal. In his findings, Judge Lynchard states that “The Maddox Foundation Trust properly and lawfully moved its situs and assets from Davidson County, Tennessee to DeSoto County, Mississippi, after its two Trustees so decided … one of the Trustees, Defendant Working, now regrets that vote and subsequent move for reasons known only to her …”

The Maddox Foundation was founded in 1968 as a charitable trust by businessman and entrepreneur Dan Maddox and his wife Margaret. When the Maddoxes were tragically killed in a boating accident in 1998, Ms. Costa and Ms. Working became the Foundation’s directors.

About the Maddox Foundation

The Maddox Foundation continues to serve as a catalyst for building strong and viable communities which meet the needs of their citizens through collaborative action and service. The Foundation supports nonprofit organizations in Middle Tennessee and Mississippi. The Foundation’s historic areas of interest include education, children and youth, elderly services, conservation and the environment, and animals. Visit our Web site at www.maddoxfoundation.org.