July 2003

The WSBA Foundation: What Shall We Do?

by Dick Manning, WSBA President

I'm critical of boring columns written by somebody occupying the very transient position I hold (sic transit gloria mundi). That's one reason you haven't seen a president's column in Bar News for the last couple of months. So I'm going to keep this brief so that you will persevere to the very last period.

Birth of the Washington State Bar Foundation
The Washington State Bar Foundation was incorporated in 1957, but not formally organized until 1977. The foundation became a logical home for various funds and memorials, including those for Judge James Lawless, attorney Kevin McMahon, and Judge Morell Sharp. And from time to time, the foundation has received funds and distributed dollars for qualified charitable purposes as specified by the donors. In most years, the foundation's funds have been small, and have not triggered IRS income-tax reporting requirements.

The Lawless Fund
Tri-City Superior Court Judge James Lawless tragically was assassinated in his chambers by a mail bomb. Judge Lawless was respected by his community and revered by his colleagues, and his death spurred the formation by the Superior Court Judges' Association (SCJA) of a scholarship fund for law students. The SCJA has continued to support this fund. The Lawless Fund distributes three $1,000 scholarships annually to a student at each of our state's law schools. The current principal balance of the fund is about $66,000. The Washington State Bar Foundation provides an IRS-approved nonprofit corporation to receive, hold, invest, and distribute scholarship aid.

The McMahon Fund
Kevin McMahon was a highly respected business lawyer who died in a tragic car accident in the very prime of his life. A number of his colleagues—primarily those in the WSBA Business Law Section—decided to create a fund in his memory. The McMahon Fund was endowed to provide special programs and speakers for the WSBA Business Law Section. Its current balance is about $16,000.

The Sharp Fund
Judge Morell Sharp was a federal district court judge in Seattle. After his death, a fund was established that paid expenses for a memorial address at the annual State Bar convention. In 1997, the balance of the Sharp Fund was disbursed to support the establishment of a memorial sculpture on the grounds of the U.S. Courthouse in Seattle.

Rebirth of the Washington State Bar Foundation
In 1999, WSBA Executive Director Jan Michels and General Counsel Bob Welden began working with WSBA officers and foundation trustees to revitalize the foundation. With pro bono assistance regarding private nonprofit reporting and IRS requirements, they were able to clarify the status of the foundation, and it emerged as a viable and flexible 501(C)(3) charitable organization.

The foundation board of trustees has recreated itself under the able leadership of WSBA governor Bryce Dille. The foundation is seeking direction and purpose. At a recent meeting, the trustees brainstormed new goals. Suggestions included:

Creating scholarships to promote diversity of all kinds in the profession.
Sponsoring futurist conferences/symposiums on cutting-edge technology and trends affecting the justice system.
Educating the public about our justice system.
Funding an ethics chair in law schools.
Offering a tax-deductible haven for donors of local bar associations for qualified pro bono civil legal services.

Helping Smaller Bar Associations
Perhaps the most intriguing idea involves bars without an IRS-qualified nonprofit corporation. Many of these associations have programs for providing indigent civil legal services but are unable to offer donors the benefits of a charitable income-tax deduction. The foundation could provide such a vehicle and distribute funds for qualified purposes as specified by the donors (although there must be a nexus between the pro bono program and the foundation—a legal requirement).

A Separate Track from Other Existing Nonprofits
There are a number of qualified nonprofit corporations/foundations engaged in fundraising for legal services, scholarships, etc. LAW Fund is one. Others include the foundations of the King County Bar, Tacoma-Pierce County Bar, and other local bars. The consensus of the WSBA is that a state bar foundation should not be in competition with these other well-established programs. What our foundation can do is offer the services that larger bars can afford, but smaller bars cannot.

Tell Us What You Think
What do you think? The Washington State Bar Foundation board of trustees wants to hear from you. It is open to any serious suggestion you have. Chair Bryce Dille can be reached at bryced@cdb-law.com. I encourage you to e-mail him now. We have an exciting opportunity ahead of us.

Back to table of contents >>