If you give cash in the form of equity to a new born baby and lock that capital away for a long time, when that person receives the capital they will learn the power of compounding.
Wealthy families already do this. What about poor families? They will need somebody wealthy to donate that Birth Certificate capital. Donors should be able to choose from a checklist of 6 items.
- how much they will donate (obviously, like any donation). For example, $100,000.
- how many babies to donate to? If the total donation is $100,000 is that 100 babies getting $1,000 or 10 babies getting $10,000. The maximum per baby is $100,000 and the minimum is $1,000 in developed economies.
- whether they want to donate to named people. To avoid people using this just to donate to friends and family they must self certify that they do not know the people they are donating to. Donating to named people could make it more appealing to donors.
- whether they want to be anonymous or have their donation publicly listed?
- what country they want to donate to. There should be a list of countries to choose from. This will determine the maximums and minimums (eg $1,000 maybe a lot in some countries) and the appropriate tax vehicle.
- what assets they want on the certificate. This is the subject of next week’s post.
Some subjects are too complex for our short attention spans, so we do 4 posts one week apart, each one short enough not to lose your attention but in aggregate doing justice to the complexity of the subject. Stay tuned by subscribing.
if you are interesting donating cash or IP to this impact venture idea, please reach out to me on LinkedIn.
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