Gail Gygax On Memorial Funds & Legal Expenses

Amidst the whirl of debate that sprang up in response to the recent news about the Gygax trademark and Gary Gygax's widow, Gail, and sons Luke and Ernie, one question was asked frequently -- the legal dispute was an expensive endeavour (in the region of six figures, according to some speculation) and a number of folks wondered whether it had eaten into funds set aside for the Gygax Memorial Fund (administered by Gail Gygax to create a memorial statue of her late husband). I figured the most expedient thing to do was to simply ask her.

We're talking two different entities here. Both are headed by Gail Gygax. One is called The Gygax Memorial Fund (GMF) and the other is the Gail C. Gygax Revocable Trust (Gygax Trust).

I'd add that other questions have circulated that I do not feel comfortable asking; I feel those issues are between the family members involved. However, the Memorial Fund is, of course, a more public affair. Here's what Gail Gygax answered when I asked her about the funding situation for the legal dispute and the Memorial Fund (bearing in mind it's Thanksgiving today in the US):

"The Gygax Memorial Fund is a 501 c 3 Corp. All tax returns have been filed and all donations accounted for. The GMF does not pay Mrs. Gygax a salary for her endless hours of service nor has it loaned her or the Gygax Trust any funds. Unfortunately, on the heals of a press release regarding the "Gygax" trademark, it would seem certain individuals are out to sabotage the efforts of the GMF by engaging in wild speculation and mis-leading statements. This only serves to hurt the memory of E. Gary Gygax."

It also seems that Gail Gygax has agreed to answer some questions about the GMF over at the blog Tenkar's Tavern.

The Gygax Memorial Fund has a website. The fund was started about 6 years ago, shortly after the passing of Gary Gygax. In 2014 a proposal sketch of the statue/plinth was revealed (below). You can also read about it at Lake Geneva News.

 

[Le Noir Faineant]

***Continued from the K&K.***

How the GMF has been using money, specifically, of course is difficult to tell in detail... But here you find their short form tax report from 2013:

http://990s.foundationcenter.org/990_pdf_archive/300/300580070/300580070_201312_990EZ.pdf

Bottom line is, GMF is collecting money, but not using it for anything. They're spending 1.166 $ for all sorts of maintenance stuff, which is a dick move, because they're effectively having no other expenses than anyone else working from home, plus probably minimal maintenance fees for the website. - A dick move, but legal.

The clue for all internet detectives here is the employment of the Curtis husband and wife: They are billed with 1 hour per week, which really means, they come over for a coffee. Yet Gail's sister is employed for all the "soft" sectors of potential memorial fund activity. - Meaning that the problem is not the ugly-ass statue; the problem, in terms of possible money-laundering - because that's the implication that is really made here, let's face it - is with these "soft" sectors.

The big caveat here is that between the GMF and the Gail Gygax Revocable Trust (GT) that presumably holds all Gary-Gygax-related IP, practical business reality will make a distinction between between the GMF and the Gygax Trust indistinguishable. - As in, how Mrs Gygax looks to practically separate her work in "long range planning for educational programs and activities geared towards keeping Gary’s memory and contributions to gaming alive" from promoting her trademarked brand or (future) copyrighted products. - In Engrish, what a lovely way to sell reprints, for example.

Here's some additional info on the GT and how it operates, in principle:

http://www.investopedia.com/terms/r/revocabletrust.asp

http://www.findownersearch.com/owner-the-trustees-of-the-gail-6994150-company-brands.html


...And indeed, the trademarks "Gygax" and "Gygaxian" belong to them:

https://trademarks.justia.com/867/17/gygaxian-86717901.html

https://trademarks.justia.com/858/66/gygax-85866568.html


Not going to write you guys another novel, just saying - after looking closely into this, I tend to share the many negative sentiments expressed in this thread. Let's hope this whole enterprise does not irrevocably damage Mr Gygax' memory.

 

[Le Noir Faineant]

(Pardon the profanity, apparently that is allowed at K&K.)

 

[JohnRTroy]

Bottom line is, GMF is collecting money, but not using it for anything. They're spending 1.166 $ for all sorts of maintenance stuff, which is a dick move, because they're effectively having no other expenses than anyone else working from home, plus probably minimal maintenance fees for the website. - A dick move, but legal.

The clue for all internet detectives here is the employment of the Curtis husband and wife: They are billed with 1 hour per week, which really means, they come over for a coffee. Yet Gail's sister is employed for all the "soft" sectors of potential memorial fund activity. - Meaning that the problem is not the ugly-ass statue; the problem, in terms of possible money-laundering - because that's the implication that is really made here, let's face it - is with these "soft" sectors.

None of the members are being billed any salary at all. According to that tax return, that is time they are spending but they are not being compensated at all, in other words, all three parties are doing that work as volunteer time. So you really can't accuse any of them of getting a salary "for no work". There's no money being transferred there. I strongly suspect that will remain the same for the 2014 and 2015 tax returns as well. Signs of "funny business" would be high salaries for each of the members.

As far as around $1000.00 being a "dick move"--the expenses of any corp of this type are deductible and can and should be calculated. $250 dollars for office supplies? Wow, obvious proof of over-inflated expenses! Meeting costs--Gail's relatives are on the east coast, perhaps its the cost of phone meetings? The web hosting could reasonably cost 25-50 per month, web domains alone can cost a bit to renew each year, etc.

The big caveat here is that between the GMF and the Gail Gygax Revocable Trust (GT) that presumably holds all Gary-Gygax-related IP, practical business reality will make a distinction between between the GMF and the Gygax Trust indistinguishable. - As in, how Mrs Gygax looks to practically separate her work in "long range planning for educational programs and activities geared towards keeping Gary’s memory and contributions to gaming alive" from promoting her trademarked brand or (future) copyrighted products. - In Engrish, what a lovely way to sell reprints, for example.

We have no knowledge of the trust or it's members or beneficiaries--she could be setting this up for Alex, for instance, or she's using a revocable trust to protect things legally in the future, especially since she's had health issues (as the last official memorial site update explains). Or perhaps there's a revocable trust to make sure both areas are clearly kept separate, as opposed to just reporting the IP related stuff as a regular income.

Trusts are better explained here:

https://en.wikipedia.org/wiki/Trust_law

I don't think the existence of a revocable trust in itself is proof of "funny business"

 

[Le Noir Faineant]

My posts are obviously unedited quotes from the discussion at K&K, mind you. But, YES, you're right, I should have been more measured with my contempt. Let me stress that *I* don't think there's any *funny business* going on; I am not questioning the grieving widow's honest intentions. I am questioning her skill, which is a completely different matter. I am also by far not the only one who is doing so.

As to the tax deductions, yeah, it's something you can do; but it's perhaps not something you *should* do, if you're running two companies with rather similar purposes; and less if it's really office material, and phone calls to your sister. Like, you're paying your trip to GenCon out of your own pocket (allegedly), but your pencils, you deduct?!

As to an entanglement of interest between the GMF and the GT, that's not really something we disagree on, I think.


Like I wrote on the K&K over and over, it appears that the Gygax estate in general simply needs better business and PR counseling. Their actions are widely ridiculed, and the press they're getting is abysmal. If they stay this course, the only they're going to do is damage their own brand much further - and with it, the memory of one of the founders of the hobby we all share. Bad times...

 

[billd91]

Not going to write you guys another novel, just saying - after looking closely into this, I tend to share the many negative sentiments expressed in this thread. Let's hope this whole enterprise does not irrevocably damage Mr Gygax' memory.

Considering the small minority of gamers even aware of or caring about the issues involved, I doubt any damage will be significant.

 

[Mark CMG]

Considering the small minority of gamers even aware of or caring about the issues involved, I doubt any damage will be significant.

I think Ralph Graves said something similar about the relationship between Life magazine readers and the Internet.

 

[JediSoth]

Considering the small minority of gamers even aware of or caring about the issues involved, I doubt any damage will be significant.

Plus, Luke and Ernie, and everyone involved with Gary Con, are doing just fine at preserving their father's memory. You couldn't ask for a better memorial to the man who loved games than Gary Con.

 

[tenkar]

I believe that the Trust goes to Gail's sister. I've heard that from multiple sources verbally that are close enough to this to know. I'll try to track down confirmation that is posted online somewhere.

 

[JohnRTroy]

Since people were waiting for this, the memorial fund site has been updated with the tax returns.

http://www.gygaxmemorialfund.org/fund-info/financial-info

http://www.gygaxmemorialfund.org/images/Documents/tax-returns/990ez-2013.pdf
http://www.gygaxmemorialfund.org/images/Documents/tax-returns/990ez-2014.pdf