How long will the charity get support because of my one-time donation?
There is no end to the Future Fund or to the financial support the charity gets based on your one-time donation: as long as the stock market generates returns that are higher than inflation, your investment will continue to yield interest.
So my support for the charity continues even after I die…?
Certainly! Even more so, the Future Fund is ideally suited for bequeathing an inheritance to a charity. Currently, with regular bequeaths to a charity, you give a charity the right to use your assets; they may then use the interest on the bequest as a source of income. There are 2 major differences between such regular bequests to charities and bequests through the Future Fund:
- Regular bequests are usually quite large amounts of money. The reason for this is there are costs involved with bequeathing an inheritance to a charity, e.g. for a notary. For those costs to be worthwhile, the bequest needs to be quite large. In contrast, the Future Fund is there for everyone: donating and bequeathing are possible from as little as 5 dollar.
- At the Future Fund 50% of the return goes to your charity each year and 50% goes to increasing the real value of your initial donation – the amount that is invested. In many countries, this is not allowed for bequests to charities; registered charities are often not allowed to invest or otherwise increase their holdings (otherwise, they lose their non-profit tax status). With the Future Fund this IS allowed. As a result, your support for your charity increases every year. And it does so without an end. If the stock market keeps generating the same returns in the future as it has in the past 100 years, this results in some amazing numbers for your donation (see Table below).
Table 1. Future projection of long-term, total amount of support for a charity after a one-time donation of $10 via the Future Fund. Average historical interest between 1871 and 2021 was used to make the projection.
Future projection of long-term, total amount of support for a charity after a one-time donation of $10 via the Future Fund
|wdt_ID||Years||Projection of cumulative amount transferred to a charity after X years|
|9||500||$ 48 million|