How long will my support for the charity that I have chosen continue?
There is no end to the Future Fund or to your donation: as long as savings accounts and the stock market generate returns that are higher than inflation, your investment will continue to yield interest. In fact, each year the interest — and thereby the donations to your charity — will increase!
Huh?! 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:
1. 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 1 euro (keep an eye on our “Future Fund 1 euro action” in the future, where we ask everyone to donate 1 euro to his/her favourite charity)!
2. 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-investment. 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, especially if you chose the stock market investment option (see Table below).
Table 1. Future projection of long-term, total amount support for charity based on a one-time donation of $10 that is saved or invested. Average historical interest between June 1920 and June 2020 was used to make the projections.
|Years||Saving option, interest 100% → charity (in $)||Saving option, Future Fund 50-50 method (in $)||Stock market investment option, interest 100% → charity (in $)||Stock market investment option, Future Fund 50-50 method (in $)|