Hi,

After you get someone to give you $100-$200 what happens next ?

We are creating a Wealth Fund once we reach a certain level TBD The money will be invested. The great part is you will be able to take a preferred rate of return and donate part to charity. Or lets run with the idea someone might actually give up to 50% of the profits to charity.

Quote:

"The great part is you will be able to take a preferred rate of return and donate part to charity."

Who gets the "non preferred rate of return," and how do you justify such a structure under current securities regulations ?

Do you have any experience in this field, and if so why are you hustling $100 dollar clients.

The processing cost alone will be more than $100 per client. For example writing the Prospectus will cost around US$500,000., meaning the investment from the first 5,000 investors will only cover fees from writing the prospectus.

What is the difference with banks, etc and me giving directly to charity?

We create wealth through leverage in trading. My background is trading I have been a professional Trader for myself and others since 1996.

The average Donation is $100-200. The donation is just that. $100-200
We are looking to hedge funds and other money managers to bring large capital to fund this program also.

Each and every donation will be invested in a Hedge fund that trades the Futures/options market. The investments will be tracked from and independent source. We may have to register as a CPO or CTA after we have 15 members. We will following the regulations associated with those Designations. We are looking into creation of a wealth management and private partnership entity also.

If an investor or entity want less risk for the investment then there will be a preferred rate. The other return is then reinvested for the designated charity. Donations are to be sent directly to each organization that we have signed on. Others may have to go through a third party depending on their technology.

Hi,

Thanks for the comments. Your comments are however very hazy. Perhaps you could give us some examples.

a) What do you mean exactly by "preferred rate". The reason I am asking is that giving preferred treatment to some investors; and not to all is a criminal offense in the USA. If you mean something else, please clarify.

B) Quote: "The investments will be tracked from and independent source. "

As you are aware all funds handling discretionary funds must be audited.
Are you offering something extra?

c) Quote:"Each and every donation will be invested in a Hedge fund that trades the Futures/options market."

Why would anybody donate funds to a hedge fund, especially since large investors are; as you explain also "INVESTING" in the same fund, and that these Large Investors, may donate some of their profits to charity and or not donate?

Quote:"We are looking to hedge funds and other money managers to bring large capital to fund this program also." "Or lets run with the idea someone might actually give up to 50% of the profits to charity."

Would you also be so kind as to enlighten us as to the TAX ramifications of such a venture.

For example, in the USA if I were to donate $1,000,000 to a recognized charity today, I would get an off setting Tax deduction in this Tax year.

If I were to place this same $1,000,000 into a Hedge Fund which trades Commodity Futures and options, there would be a strong likelihood
that my profits or losses would be reflected in a future Tax year, and perhaps in a year where I did not need the deduction.

If I were to loose 50% of my $1,000,000 in my trading account, this would be considered a capital loss and not deductible against income. A charitable donation is however deductible against income.

Basically putting money in your fund would have a high likelihood of screwing up my tax planning, as also that of any Hedge fund or Money Manager.

I would prefer to give directly to Charity when it makes good TAX sense.

a) What do you mean exactly by "preferred rate". The reason I am asking is that giving preferred treatment to some investors; and not to all is a criminal offense in the USA. If you mean something else, please clarify.

Response:Anyone can Select a preferred rate of return...

B) Quote: "The investments will be tracked from and independent source. "

Response:They will be audited.

c) Why would anybody donate funds to a hedge fund, especially since large investors are; as you explain also "INVESTING" in the same fund, and that these Large Investors, may donate some of their profits to charity and or not donate?

Response:The idea of this program is to create wealth for others in need. Philanthropy - "philanthropy n. , pl. -pies . The effort or inclination to increase the well-being of humankind, as by charitable aid or donations."

D:Quote:"We are looking to hedge funds and other money managers to bring large capital to fund this program also." "Or lets run with the idea someone might actually give up to 50% of the profits to charity."

Would you also be so kind as to enlighten us as to the TAX ramifications of such a venture. I am not a tax guy - We can have one call you...

For example, in the USA if I were to donate $1,000,000 to a recognized charity today, I would get an off setting Tax deduction in this Tax year.

If I were to place this same $1,000,000 into a Hedge Fund which trades Commodity Futures and options, there would be a strong likelihood
that my profits or losses would be reflected in a future Tax year, and perhaps in a year where I did not need the deduction.

Response:I am flat at the end of the year... No messy taxes that way.

If I were to loose 50% of my $1,000,000 in my trading account, this would be considered a capital loss and not deductible against income. A charitable donation is however deductible against income.

Basically putting money in your fund would have a high likelihood of screwing up my tax planning, as also that of any Hedge fund or Money Manager.

I would prefer to give directly to Charity when it makes good TAX sense.

Response:We appreciate your comments.

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nice... a bit like a ameritrade or zecco but with a 100-200 dollar minimum instead of 2000?

"established an online social networking community" If you are done why in the world do you need help. You all ready have it in place.

We do have the site up... There is a lot of back end development that is needed.

Marketing
Networking
Funding
Linking
Creation of widgets
coding for "Open Social"

Ameritrade and zecco do not have the focus we have and that is Co-create Wealth for others...

Cool idea.

If you've already established this and decided how you want to do it, then why not set this up as a CH business rather than an idea? This section of the site is for those wishing to test and refine their ideas in the light of public commenting and suggestion, and you're clearly not willing to do that.

Maybe a cool idea, but as CharonV says, not practical.