Support the future of your favorite charity
The gift that keeps on giving
The Future Fund is a charity donation platform that focuses on the future: We make it possible for you to invest in your favorite charity.
This way of giving to charity has two major advantages. It makes your donation:
- Ever-lasting: the charity gets support every year (the interest on your donation), even if you donate only once. This continues year in, year out, without end.
- Ever-growing: the investment generates more interest every year → meaning that more money goes to charity every year.
And, investing can be really safe and give a reliable interest. Read on to see how it works.
How it works
You choose a charity and an amount you want to donate. We invest your donation in the stock market. Then, each year, we transfer interest on the investment to the charity. The amount, and as a consequence the transfers to charity, become a bit bigger each year.
Here below are some examples of the charities that you can support via our website:
The Future Fund in 4 easy steps
You make a one-time donation to a charity via the Future Fund. You choose the charity + the amount.
We invest your donation in an ethical, sustainable and social investment fund.
Every year, your invested donation generates a profit. 50% of the profit is transferred directly to the charity and 50% is used to increase the invested amount. This way, the amount that is transferred to the charity becomes bigger every year.
Impact that grows
Interest rates vary per year, but long-term results are remarkably reliable for stock investments (7.0% interest on average per year). Here below you can see an estimate of how much money will reach the charity over the next 50 years, if you make a one-time donation of $ 10 today, based on that average interest on stocks. More than 3 times your initial donation amount is estimated to end up with the charity in the next 50 years! Over the next 100 years, this is projected to grow to more than 20 times your initial donation.
We ask 10% of the interest on the donations that we invest for donors to fund the Future Fund. This is on purpose a % of the interest, and not of the donation itself. This way, we only get money if the charities get money! Furthermore, we are a non-profit, so when donations via the Future Fund increase in the future, this % will go down. Our long-term goal is 5% or less.
Suppose you invest $ 100 for your favorite charity and that in the first year there is a 10% return (amounting to $10). Then:
- $ 4.50 is transferred to the charity for which you invested the donation
- $ 4.50 is added to the original $ 100. As a result, next year’s interest is made not on $ 100, but on $ 104.50! This way, the charity gets a little bit more support every year.
- $ 1 is transferred to us at the Future Fund to cover our operational costs
The Future Fund Foundation is a non-profit. You can read more about our foundation here.
No, the Future Fund was specifically established to allow everyone to invest for their favorite charities! The minimum donation amount is 5 dollars.
At the Future Fund we believe in using evidence to make the impact of your donations to charity even larger. And evidence we have a lot: we studied more than 150 years of stock market history.
This evidence shows how you can invest safely, namely by:
- investing in many businesses at the same time and
- holding those investments for a long time
By holding to these two rules, we know the interest on the donations will move to the average interest on all stocks combined: 7.0% per year.
All investments are done through an ethical, sustainable and social investment fund. This means that there are no investments in ‘bad sectors’, such as fossil fuels, guns and smoking. Instead, ethical, sustainable and social businesses receive extra support.
The reason for using this 50-50 method is with this method, the charities get a little bit more each year, every year. The method generates an “interest-on-interest” effect (see the Calculation example). This results in your invested donation, and with it the money that is transferred to the charity each year, growing exponentially. So based on your one-time donation, the charity not only gets ever-lasting financial support, but it gets an ever-growing amount!
We publish an annual report and fiscal statement every year. Each donor will also gets a personal dashboard where they can review their donations.
You can do this, too! If you do this, the charity will spend your money directly. The difference with the Future Fund is that with us, your one-time donation results in a stable income for the charity year in, year out. Most charities are not allowed to invest money like this themselves as a source of income (only as a reserve). Also, practically, they generally do not offer the option to label your donation as an investment. That is why the Future Fund exists! We encourage people to do both: support charities now AND support their futures.
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Donate now to your favorite charity and give them a gift that keeps giving: a donation that generates interest for them every year!