Private Placement and Humanitarian Projects for the Smaller Contributor

Private Placement Program (PPPs) sometimes called High Yield Investment Programs (HYIP) until recently have been reserved for the very wealthy and institutions. For many years the amount of cash required to enter one of these programs was $100 million dollars. The investors in these programs accumulated great wealth and most of them created tax free foundation or trusts to fund humanitarian projects such as education scholarships, housing, environmental protection, animal rescue and victims of domestic abuse. These charitable activities help fill the void left by government’s inability to fund or provide services to those in need.

One problem is that these wealthy foundations generally use some other service organization to funnel their wealth into the communities and often globally to far ends of the earth and out of the local community. Giving away money is big business and is monitored by the government. If you give money away the government wants to know about it because that money could have been taxes in the general fund.

A major issue is how do you provide support to your local community’s humanitarian needs like, the homeless, battered women, drug rehabilitation, special education and training for jobs and a host of other worthwhile activities.

As a small donor my $100 dollars is seen as a waste because it isn’t going to do much good. This creates a public mindset not to contribute at all. If I contribute to a global program I suspect that the money is probably going to be wasted to a large extent. The media is constantly reporting the theft of medical supplies, food, equipment and money meant for people in distress by those managing the process. Let’s face it, corruption is everywhere so why should I be a victim to fraudsters.

If I want to make an impact in my own community I can only do that if I am close enough to meet the managers face to face and demand accountability. However, first I must have sufficient resources to commit to the charitable activity to have any say so over how that money is used. One hundred dollars or even a thousand dollars will not buy you much credibility when it comes to the magnitude of the humanitarian problems in our communities.

Well for those of you who want to create a difference let me suggest the following. You may not have the cash required that you can contribute to make a difference in a community concern but that doesn’t mean you have to give up. There are many more people in your community that would donate to a humanitarian project if they knew the money would be used locally. 

So how do we go about making a difference in our local communities?

Leveraged funds is the answer. Recent events have changed the Private Placement arena. As of January 1, 2017 3rd party trades are not allowed; the trade platform must be the beneficiary of the asset. And very importantly the US Fed has approved some trade programs that are based in the USA. To enter a Fed program the trader must be a Federally Registered Trader and the Platform must be registered as well. And, most important the minimum limit for enter into these programs has been lowered to $1,000,000.

If you want to make a difference in your local community and you either have a million dollars to invest (and not lose) or a group of individuals who raise a million dollars then you can make a difference.

These programs allow you to start will $1,000,000 and will pay 50% or greater for ten (10) weeks and the total amount will be placed in a second trade that will pay a net return of 30% a week for 40-weeks. Small investors cannot risk losing their principal.

The Fed programs provide a guarantee via contract and the one we use covers the investor with an insurance program. Not only do you get the returns you keep you initial investment. Since these returns are taxable you would be responsible for those taxes, however if a significant amount of that money is being directed to a local charitable organization the tax burden would be less. You would need to discuss your personal situation with your tax adviser before making any commitment to this program. However, you can always consider the organizational issue before you make the investment to maximize the contribution to the charitable organization and minimize tax exposure.

If you could contribute $3,000,000 to an organization like “Wounded Warriors” taking no risk in losing your $1,000,000 investment and grew that investment into two million – WOULD YOU DO THAT? 

For more ideas please contact me at my direct email.

James (Jim) Sheridan National Capital Group, LLC [email protected]