How it Benefits Charities?
The FIFE plan essentially does the exact same thing as the charitable loan with one twist. After the Donor transfers the additional tax refund to FIFE they are removed from the loan because their obligation is fulfilled and FIFE is the sole responsible party after the transfer is made and is responsible for in this example paying the yearly interest of 2,500.
Secondarily, FIFE will try to endow the project by additionally paying back the entire 100k principle over time. Our projections and current investment vehicles allow us to do so and our confidence in what were doing is why we are willing to take all of the risk involved in the FIFE Plan.
There is absolutely no risk to the charities that are named as beneficiaries as Fund it Forever is Holding the I bonds that Guarantee it the interest and the payback of the principle amount in this case the 100k.
Furthermore the “named charity” is protected in two ways the first being that it under no condition could be held responsible for paying an excise tax in relation to these donations while Fund it Forever Could. At the same time, they are guaranteed the AFR every year and an eventual payback of the entire principle amount for the loan. So, you know your charity will benefit greatly from your participation.
The FIFE Plan contract includes obligations for Fund it Forever, Farsight Partners and FIFE which ensure that the donors goals are upheld with the upmost priority.