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New Song Funding Exchange |
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Investments for Life Transformation in Africa & Elsewhere |
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Two Ways to Invest |
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NSFE projects are broken into two types of “notes.” >> A-Notes are for conscientious investors that want to see their money put towards life transformation projects but are also seeking a return on the monies they invest, similar to traditional investing. A-Notes hold the promise of healthy returns as well as the joy of knowing the investment changed lives. Investors seeking a return should purchase A-Notes, and gains are taxable. >> B-Notes are for people interested in investing in these kinds of projects but are not seeking a return. B-Notes are tax deductible. Thus, B-Share “investor-donors” get a tax benefit and the joy in knowing the proceeds realized from B-Notes will get reinvested in future projects for 3 years— what we call rollover funding. For example, a $25,000 B-Note investment-donation can mean nearly $60,000 in total project investments over the course of 3 years. Q: How many A-Notes are there versus B-Notes for each project? >> Each project will be different but NSFE is targeting an 80:20 ratio— for example a $10,000 project would have $8,000 in A-Notes available for investors and $2,000 in B-Notes available to investor-donors. Q: How does NSFE cover its expenses? >> NSFE’s goal is to keep its operating costs separate from the lending/investing process. Therefore, NSFE will not take money from proceeds from A-Notes, will not charge broker fees, and will not charge higher rates of return to the projects as is common among other social investing organizations. Instead, proceeds from B-Shares will help keep NSFE funded but only after the B-share donations have been re-invested for three years. NSFE has secured some seed money and is actively seeking grants, donations, and church support. >> If you are interested in supporting NSFE’s operating expenses please contact Carl Siebels: carl.siebels@gmail.com . Please know that most of NSFE’s operating expenses to date are related to supporting Joe McKee, Dave Toms, and NSFE’s field operations in Africa. NSFE’s annual operating budget is projected at $180,000.* * According to a 2007 study by the Center for Global Philanthropy, cost for a single field consultant hired by the US government in Africa averaged $300,000 in annual expenses.
NOTE: NSFE projects are high-risk and typically unsecured projects that are geared toward making a difference in emerging markets. Investing in emerging markets carries special risks and the return of the initial investment or any potential interest cannot be guaranteed by NSFE, its partners or staff. If you have any concerns, please consult an investment professional you trust and have them contact us. |
