HOW CAN MONEY REGENERATE ITSELF EVERY 8 ± YEARS?
Regeneration is achieved
through the purchase of future dollars at a discount.
Many people invest in Certificates of Deposit (CD's), Savings
Bonds, Real Estate, Structured Settlements, Mortgages, Annuities or similar financial
instruments that, upon maturity, return an amount of money substantially
greater than their cost, (sometimes double their cost or more). Many states offer lotteries that provide for
a large payoff, if paid over time, as opposed to a smaller amount, if taken
when won. These examples demonstrate
how the value of "future dollars" can be greater than their present
value.
“WOL” purchases deeply discounted "future dollars" by buying, government
backed securities, annuities, tax liens, structured settlements or other types
of financial or insurance instruments ("Instruments"), commonly
available in the marketplace.
The Board
has established three important criteria for its purchase of Instruments:
1. They must be issued by governmental
authorities, insurance companies,
or other entities having a strong financial
rating, usually "A", "A+", or
"A++", as rated by
A.M. Best, Co. or a comparable rating service.
2. Upon maturity, the investments must pay at least twice the
amount
invested, and
3. Maturity must
be expected within approximately 6 to 10 years, at which
time the full amount
of the original donation will be restored.
Regeneration may also be achieved through the purchase of appreciating
real estate or other secure investment vehicles.
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WHAT WILL THE FUTURE BRING?
“WOL’s” Board of Directors believes that the financial objectives of its “Perpetual
Fund” can be achieved for the foreseeable future, however, nobody can really
predict what will happen over time. Years
from now, who knows?
“WOL’s” Program of Regeneration is designed to last forever,
and to perpetually expand. It will do
that unless laws change, “WOL’s” future Trustees, for whatever reason, alter the plan, the Instruments (now
abundantly available) become unavailable, the IRS determines that the increase
produced by its Instruments constitutes unrelated business income, the value of
its real estate investments do not meet expectations, or the occurrence of some
other legal, catastrophic or unforeseen event.
But as long as the future value of money remains greater than its
present value, the Board should always be able to purchase "future dollars
at a discount", in one form or another, enabling “WOL’s” program of Perpetual Funding to continue into future
generations.
The purchasing power of
today's dollars are expected to diminish over time, however, the use of that
money in the future will generate new donations at the then current
values.
Historically, the "time
value" of money fluctuates as interest rates rise and fall, therefore, in
the future, the time required for regeneration could become shorter or longer
as interest rates move up and down. At
present, Instruments, such as those described above, are in ample supply.
The
Directors are under a mandate to always protect the Fund’s principal, to
utilize approximately half of its cash on a current basis, the other half for
regeneration purposes, and to perpetually spread “WOL’s” doctrine of "overcoming hatred with love"
throughout the world.
To donate to the “WOL” Perpetual Fund, please click on
:
perpetualfund@luvfoundation.org
WILL THE PERPETUAL FUND’S INCOME BE TAX-EXEMPT?
The donor’s initial
contribution to the Perpetual Fund is clearly tax-deductible.
“WOL” has not yet requested a specific ruling from the IRS
on the tax-exempt nature of the income generated by the “Perpetual Fund” from
its investments. It is unclear whether
or not a specific ruling may be required to establish that such income is not
subject to the Unrelated Business Income Tax (UBIT).
Since all of “WOL’s” income from the “Perpetual Fund” will be derived from money that was donated
for that purpose, IRS rules appear to state that such income would be exempt
from UBIT, however, until a definitive ruling is made, it is also possible that
the IRS could rule otherwise. If the
Perpetual Fund’s income proves to be exempt from taxation, the Fund will
function exactly as set forth herein.
While
an adverse ruling would not defeat the Fund’s ultimate objective, it would
reduce, by the amount of the taxes, the funds available for use by “WOL” each time
regeneration occurs.
AT THE PRESENT TIME, “WOL” CANNOT REPRESENT WITH ABSOLUTE
CERTAINTY THAT THE INCOME IT WILL DERIVE FROM ITS REGENERATING INSTRUMENTS WILL
BE EXEMPT FROM UBIT. ACCORDINGLY, NO
SUCH REPRESENTATION IS MADE.
FUTURE VALUE OF “PERPETUAL FUND” DONATIONS
The cost of fundraising for
the Perpetual Fund occurs only once, but the usable funds those donations
generate over time, greatly expands with replication. Assuming such income is tax-exempt, the chart below shows the
useable funds that a $100,000 donation will produce for “WOL’s” use,
from the moment of donation through its replication 10 times:
If the
donation replicates itself every 6 to 10 years, as expected, the useable funds
from that donation will have become $125,000 within 12 to 20 years, $525,000
within 60 to 100 years, and the same donation will continue to replicate
itself, indefinitely into the future.
COST OF COST OF NET TO
DONATION REPLICATION FUNDRAISING “WOL”
$ 100,000 $ 50,000 $ 25,000 $ 25,000
1. 100,000 50,000 - 0 - 75,000
2. 100,000 50,000 - 0 - 125,000
3. 100,000 50,000 - 0 - 175,000
4. 100,000 50,000 - 0 - 225,000
5. 100,000 50,000 - 0 - 275,000
6. 100,000 50,000 - 0 - 325,000
7. 100,000 50,000 - 0 - 375,000
8. 100,000 50,000 - 0 - 425,000
9. 100,000 50,000 - 0 - 475,000
10. 100,000 50,000 - 0 - 525,000
To submit a donation to the
Perpetual Fund, please click on :
perpetualfund@luvfoundation.org
SUBMIT A REPEATING PROJECT TO “WOL”
Because “WOL” has the ability to regenerate donated money, sometimes a
worthy project can be funded in such a way that the project can be repeated
every 8 ± years, utilizing the same funds.
Should“WOL” elect to
repeat that project every year, it would have to raise double the funds every
year for 8 years. Thereafter, that amount of funds would be perpetually
available for the project every year in the future, without having to raise
another penny.
Projects that fit those
criteria are of special interest, and WOL” is anxious to hear your suggestions. Think of a project that you believe has special merit and submit it for
consideration. Please do not be
disappointed, however, if the Board does not act quickly to accept your
suggestion. Change often comes
slowly.
If you would like to submit
a project, please email us at :
newproject@luvfoundation.org
Once a project is adopted, “WOL” will immediately seek member support for funding. For that reason, “WOL” will approve only such projects that
its Board believes will receive immediate, and long-term, public and member
support.
Volunteers and Paid
Volunteers are needed to solicit
donations of vehicles, boats, airplanes, machines, stocks, bonds, businesses,
or real property, tithes, money, office equipment, furniture, amenities, farm
equipment, drilling equipment, appreciated stocks, bonds, securities, other
objects of value, Perpetual Fund donations, Charitable Gift Annuities,
Remainder Trusts, and to suggest the revisitation of donors’ wills, etc., as
well as other kinds of goods and services. Naturally, if enough money is raised, “WOL” will be in a position
to purchase whatever it needs for cash, and to reciprocate in some way to its
volunteers.
If you would like to provide
your services on a volunteer or paid volunteer basis, or if you would like to
help “WOL” establish its vision in any country in the world, please
email us at the following address :
volunteer@luvfoundation.org
Please include your
qualifications, (a resume would be nice if you have one), the capacity in which
you would like to work, the number of hours you are available per week, and all
of your contact information. Please
include your name, nickname, voice telephone, fax, cell phone, mail address,
email address, etc.
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