[Chapter 60: The Charitable Foundation]
On February 9th, Linton gathered Robert, Zack, Anne, Universal's producer Tim Cassina, Mira, and Carnes at the studio to discuss the film budget and audit the crew list.
The vice president of WMA, Logan, also attended the meeting, while Mary and Bella were there as usual to take notes and provide support.
Unlike last time, the front desk now had a young woman hired, making the studio feel more official.
Robert had prepared a detailed film budget after finalizing the script's storyboard and scouting locations.
The production expenses, including crew salaries, locations, props, costumes, hotel accommodation, and meals, were estimated at $4.5 million.
Director and main cast salaries were set at $2 million, supporting actors and extras at $800,000, dance troupe $1.2 million, insurance at $300,000, and post-production $600,000, totaling $9.4 million.
...
"Why is the insurance cost $300,000? We don't need full insurance for the film, and there aren't any stunt or dangerous scenes requiring such a high fee?"
"Step Up essentially relies heavily on a large number of dancers. Since dancers are prone to injuries, insurance is essential to cover any potential accidents during filming," Robert explained, with Anne agreeing nearby.
"Linton, as a top-tier star, shouldn't the director and lead actors be paid accordingly? Isn't the $2 million cap too low?" Mira advocated for herself.
"My top-tier status is for singing. As a director and lead actor, I am still a newcomer; a modest salary is fine. Let's allocate more to production," Linton replied, causing others to laugh.
"Any other comments?" Everyone shook their heads.
"Alright, I'll have the accountant transfer $7.4 million to the studio tomorrow. Mary, manage the crew's finances well."
"Next, let's move on to auditing the crew list," Linton said.
...
They reviewed the list WMA had provided and that Robert's team had pre-screened.
Linton mainly examined resumes of the cinematographer, lighting technician, stylist, and costume designer.
Carnes presented video reels of four notable past works, two films from each, playing extensive clips.
Though these were low-budget films, the individuals fulfilled their roles well, showing they could handle Step Up.
After confirming none had criminal records or substance abuse issues, they were approved.
Other positions were simply checked for clean background and approved unanimously.
With the crew nearly finalized, Logan, Mira, and Carnes visibly relaxed.
"Robert, Tim, contact Goodman to cooperate and quickly finalize crew contract signings. But I want to emphasize: no drug use is allowed on Step Up. This must be written in the contracts as a breach of agreement with penalties and immediate dismissal," Linton stressed.
"Logan, that's fine, right?" he asked.
"No problem. WMA fully supports your decision," Logan responded promptly.
"Robert, have you found a casting director?" Linton asked.
"Two suitable candidates: Jessica Stephens from Red Glue Casting and John Musk from Lucky Casting. Both are reputable and experienced in the industry," Robert said, presenting materials.
Linton looked over their records, seeing both had extensive casting experience with mostly B or above ratings from film companies.
"Any bad reputations or habits?"
"None. I've checked thoroughly."
"Your opinion? Who's better?" Linton inquired.
"Jessica Stephens. They're quite similar, but her commission is about 10% less," Robert answered.
"Alright, Jessica it is. Let's sign the contract soon," Linton decided.
It was already 4:30 p.m.
"Any additions?" Everyone shook their heads.
"Then it's settled. You have one day to complete contract signings. The day after tomorrow, we'll hold the crew preparatory meeting for casting here. Besides those present, please invite the casting director, cinematographer, lighting technician, stylist, and costume designer."
Everyone agreed.
---
After the meeting, Linton headed back to the estate and called Henry Zhou to discuss the charitable foundation.
After dinner, the two met in the office.
"Henry, how's the charitable foundation research I mentioned last time?"
"Boss, I've gathered detailed information," Henry handed Linton a report.
"Brief me."
"In simple terms, establishing a charitable foundation helps you save on taxes and better integrate into mainstream society," Henry explained.
"The tax savings are straightforward. In the U.S., private charitable foundations pay only 1-2% federal tax and must donate 5% of net assets annually to charity, avoiding other taxes. If you want to pass the foundation to your heirs, there are no heavy estate, gift, or personal income taxes.
Additionally, charity is part of our culture. Wealthy individuals often donate money to social causes.
Famous economic analyst Lambert said, 'In America, you can have vast wealth, but you must give back to society and be noticed. Otherwise, you'll never be a true big shot. People here admire not the rich, but those who contribute to society.'
Whether those views are entirely genuine or partly for tax avoidance is debatable. But over the last century, America has cultivated this charitable giving culture. If you want to grow your career, you need to embrace this culture.
However, private charitable foundations have a drawback. Ownership legally belongs to the charity itself. You have permanent control but not ownership.
But at registration, you can be named the sole executor with authority over foundation decisions, including management transfer and inheritance. If something happens to you, the executor must be chosen from your direct descendants. This way, permanent control makes lack of ownership less critical.
Of course, tax benefits don't mean you can freely spend the funds. By U.S. constitution and tax laws, all donations, income, and expenses must be transparent and publicly disclosed. You can spend reasonably or even set up trusts for your heirs. But you can't use the money excessively on luxury cars, yachts, mansions, or wild partying with celebrities. Exposure of such misuse will lead to public disgrace and ruin your reputation.
In short, the pros far outweigh the cons. I recommend you establish your own private charitable foundation."
Henry clearly did thorough research and presented the advantages and disadvantages with his recommendation.
"Alright, I'll think it over carefully. Wait for my decision," Linton said, somewhat interested but wanting to review the documents first.
"Also, I sense private charitable foundations are privileges crafted for wealthy families and elites," Henry said hesitantly.
Linton was surprised -- Henry's analytical skills were sharp, seeing through the essence so quickly.
*****
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