Part of Amy Lynch’s job as CEO of K&S LLC, the family office of the John and Dyan Smith family, is to help the family execute the philanthropic decisions they make. The Smith family owns and operates trucking company CRST, The Transportation Solution, Inc., and John Smith is chairman of the board. Smith talks about how he and his wife are preparing to leave a philanthropic legacy:
“Amy is helping us prepare for the active phase of our family foundation, which will receive its major funding when Dyan and I pass away. We just got the family foundation operational and are putting some money in it to get it going. When we pass away, money from life insurance will eventually flow into the foundation. That’s when it will be a real entity in terms of making grants.
“Our kids will be the foundation board members. We presented this plan to the kids and explained it to them – that has been part of the family office’s work.
“To prepare our kids for this, we set up what was essentially a donor-advised fund with the Greater Cedar Rapids Community Foundation. It granted out approximately $1 million over three years. We really wanted them to understand philanthropy — how grants are made, how people come in and talk to you and tell you why they think they’re the best — so when the bigger foundation commences significant granting, they’ll be ready.
“We wanted them to learn that you need to ask a bunch of questions. One of the problems is that some of these nonprofits aren’t going to be around long. You don’t want to be making big grants if people aren’t going to be there to do it.
“We are giving the money to the foundation with just a couple of minor restrictions. We asked that 20% to 25% of the money be concentrated on the Cedar Rapids area. That’s where I was born and raised and where my dad started the business, so I feel a commitment to the community.
“We did give the kids one choice to make: Dyan and I started talking about the word ‘forever’ vs. ‘maybe after 50 years it isn’t relevant.’ I’ve seen some foundations operate in a manner that the founder would not approve if he or she ever found out what they are giving to. The way it ended up was we said to the kids, ‘If you want to give most of it away in the next 50 years in line with what you know to be our intentions, go for it! If anything is left, it should go on forever’ — a great compromise!
“I hope they keep the foundation going in perpetuity, but Dyan probably hopes that they spend it on important stuff that really changes things – spend it and be done with it.
“It’s hard to predict the future. Some people want to control their relatives from beyond the grave. I don’t get that. Society gets complicated and things change.”