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Tuesday, November 17, 2009

Will YOU Invest in a Homeless Persons Future?

11/17/09

Will YOU Invest in Helping the Homeless off the streets, and becoming self reliant instead of allowing them to stay stuck in the typical cyclical, chronic reliance on HAO’s (Homeless Assistance Orgs)?

Yes, I said Invest. The reality is even when you donate to a “Charitable Group” you are investing in them and what they do.

The idea we are proposing is an effort to raise funds to support our valuable community work. It is very basically a form of investing. Where one can "invest" in a Charitable Group like Straight Ahead Outreach and have a portion returned to them over a period of time or one can "gift" their investment. How this works is a person, group, or business invests in our organization with the knowledge they can elect to have 25-100% of their investment returned to them, or simply gift (donate) their investment.

As Straight Ahead Outreach receives investments and or gifts/donations we will use each one of those to repay the previous investments if an investor has requested a portion to be returned. However, the investor needs to be aware there is always a risk that their investment could be lost completely if for instance the charitable group, such as ours is not able to raise enough additional investments or donations to make the return.

While we are not a 501c3, we are a valuable, credible Charitable Group operating as a not for profit homeless assistance group supplying all our services for free. Our choice is to concentrate on the Homeless population we strive to assist, not on red tape or cumbersome processes. We will comply with all normal business rules within the IRS and will voluntarily meet with them at any time to provide information regarding our charitable activities and monetary flow.

When you invest in a 501c3 I understand you receive some tax benefits, and for many this is an attraction. Our assistance group is for investors or the everyday donor who wants to invest in something they believe in with the knowledge they can “gift” their investment, lose their investment, or select to have a percentage of the investment returned - but not make a profit or any other benefit other then the satisfaction of “Doing Good.” Sort of a Pay it Forward if you will.

Example of the Investment Scenario:
In this example we will say, Charitable Group #1 has a monthly operating cost of $4000.00 and receives the following:
Investor #1: Invests $1000.00 - Investor is asking for 25% of his/her investment back or $250.00
Investor #2: Invests $1000.00 - Investor "Gifts" entire investment - Investor does not want any returned. $1000.00 "Gifted"
Investor #3: Invests $500.00 - Investor requests 100% of investment returned over time.
Investor #4: Invests $5000.00 - Investor requests 100% of investment returned over time.

Recap:
Investor #1: $1000.00 - 25% or $250 return requested over time.
Investor #2: $1000.00 – 100% "Gifted" No return desired.
Investor #3: $500.00 - 100% return requested over time.
Investor #4: $5000.00 - 100% return requested over time

Total Investments Received = $7500.00
Total Investments "Gifted" = <$1000.00>
Total Investments to return = $6500.00 Over Time
Monthly Operating Expenses for Charitable Group #1 = <$4000.00>

Charitable Group #1 has Monthly Operating Costs of $4000.00 - The Charitable group in this example needs to maintain a running balance of 3 months worth of operating expenses or in this case $12,000.00. So, they need to raise $12,000.00 before they can begin to return any requested investments. Why only 3 months? We understand this is a short time, but it will keep the group on their toes with fund raising. Yes, it will be more difficult, but without this system they would have nothing. Without you caring Investors, they would have nothing. Once that 3 months nest egg is reached they will then and only then, begin to repay the Investor his/her requested return. As the new investments/gifts come in Charitable Group #1 will then disburse return payments in the original order received beginning with Investor #1 and so on in the below manner.
Over the last 6 months Charitable Group #1 has raised the needed 3 Month Operating Expenses (Nest Egg) of: $12,000.00
They then receive a New Investment of: $2500.00, so they are $2500.00 in excess. Now they can begin the Investment repayments.

Investment repayment:
Charitable Group #1 now begins to return the Investors funds in the following order:
Investor #1: $250.00 – Investment Re-Paid in Full !
Investor #2: $0.00 - Investor "gifted" their investment. No return necessary.
Investor #3: $1000.00 – Investment Re-Paid in Full !
Investor #4: $1250.00 - Balance of $3750.00
Any new investment or monetary gift will be sent to Investor #4 until balance is Paid in Full! Once the balance is paid in full, the process then repeats itself.

Everyone’s money helping to “Do Good” in a global circle. Cool? I think so! Enjoy :-))!

**Over Time definition: Investors who are requesting a percentage of or all of their investment returned must keep in mind that their return may not begin to take place for up to and including 6-12 months. This is why we have explained this is for people who truly want to "help" a Charitable Group or Organization help others in desperate need although that group or organization is not a 501c3 IRS certified non-profit. To help unconditionally - Not for Profit. Not for the tax benefits, but for the beneficiary. In this case the Homeless Population.

Over the past 24 years of assisting the homeless, suicidal and their families, I have come to the conclusion from what I have seen and experienced that the 501c3 process actually clouds and is a deterrent to accomplishing the valuable work to be done in the community. This is why we refrain from becoming a 501c3. We believe it interferes with achieving the end result which in our case is - helping the homeless person off the street permanently and from chronic reliance on HAOs, even us Straight Ahead Outreach – Taking Back Your Life. That is where the Taking Back Your Life part comes in. We want them to have their own lives back. We want them to succeed. Permanently!

***Although we are not a 501c3, we will be in continual voluntary contact with the IRS in an effort to prove and show our charitable activities with the intention of proving our Investors and Donors true intentions of “Doing Good”. Our goal will be to ask the IRS to allow Straight Ahead Outreach-Taking Back Your Life Investors and Donors a tax deduction for those who elect to do so.

If you have any questions or concerns please email or call me anytime.
Thank you,
Lance Greene / Founder
EMAIL: straightaheadlwg@gmail.com
CELL: 865-964-1461

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