Ewing Kauffman’s Historic Gift of the Kansas City Royals
One of the Most Unusual and Complex Donations Ever Made
The Greater Kansas City Community Foundation is nationally recognized for its expertise in managing complex charitable transactions. One remarkable example, Ewing Kauffman’s donation of the Kansas City Royals to the Community Foundation in the 1990s, is recorded in history books as the only time a major league sports team has ever been gifted to a charity.
Longtime Kansas Citians affectionately remember Ewing Kauffman as Mr. K, a man who loved baseball almost as much as he loved Kansas City. His loyalty to this community ran deep, and he knew Kansas City deserved to be a major league city. In 1969, he gave the Kansas City region an amazing gift, a new baseball team to erase the loss of the Athletics to Oakland after the 1967 season.
Just as his entrepreneurial spirit led him to build Marion Laboratories into an industry leader, Mr. K created a model sports franchise in the Midwest, building a devoted fan base across six states. His passion, foresight, and ability to surround himself with capable individuals quickly transformed the Royals into a winning team and made them a cherished institution in Kansas City.
In the early 1990s, as his health was declining, Mr. K knew he needed a buyer for the Royals, someone who would ensure the team stayed in Kansas City, still one of the smallest cities with an MLB team. After a long search yielded no suitable candidate, he conceived an unprecedented plan.
Mr. K would again give Kansas City the gift of the Royals, but this time he literally gave the Royals to the community. He did this by donating the team to the Greater Kansas City Community Foundation with two important requirements. First, the Community Foundation had to find a buyer who would agree to keep the team in Kansas City, and second, proceeds from the sale would go to local charities.
At first, many questioned whether it was even possible. It was not an easy road, but thanks to some brilliant legal and charitable minds, and a host of supportive local businesses and philanthropists who raised $50 million to purchase nonvoting shares of the team via donor-advised funds, the IRS issued a private letter ruling concerning the transaction, and Mr. K’s vision became reality in 1995.
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Today, Mr. K’s bold and innovative gift remains one of the most unique charitable donations in history. His generosity ensured that countless Kansas City charities benefited significantly for many years, and his thoughtful planning ensured that Major League Baseball continues in Kansas City.