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/sci/ - Science & Math

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1080171 No.1080171 [Reply] [Original]

I trust you /sci/ so I'll tell you my plan. Please criticize to the best of your abilities:

I'm starting an organization which will collect donations around the world online. Anyone can donate any amount towards anything they want. Donations are not spent immediately, instead money is collected into high yield accounts. At the end of the year the interest is spent.

Ex.
Breast Cancer has an account worth of $1,000,000 yielding $8,000 interest at the end of the year.

$1,000,000 is saved and carried over, $8,000 is donated to Breast Cancer.

I'm sure I don't need to go into great detail with the general idea here. The hope is that we can better humanity by spending our money on important shit before the government can spend it on dumb shit.

Tell me what I've overlooked, this seems too easy.

Sorry about the picture.

>> No.1080181

Taxes on such a large amount.

>> No.1080186

>>1080181
Please explain, I'm sure there is still a profit to be made.

>> No.1080187

wait...

so you're collecting donations from people, to donate them?

why not just give the 1,000,000 to breast cancer immediately? you know, otherwise, it will take around 100 years for them to get that much money from you.....

>> No.1080204

>>1080187
Patience is the key here. I believe this method will be worth it in the long run.

>> No.1080205

Operational funds and the fact that a direct donation of 1 million dollars would be more beneficial than 8000 trickling in.

>> No.1080212

why not just donate 8,000 and keep 992,000?

>> No.1080219

>>1080204
1,000,000/8000 = 125

It would take 125 YEARS to reach 1,000,000.

Stop being retarded.

>> No.1080224

>>1080204

at the rates you posted it would take 125 years for them to get 1 million though, that sure is a long fucking run...

your grandchildren will be grandparents by then dude.

>> No.1080229

high-yield = high-risk

terrible plan

>> No.1080231

>>1080219
Donations don't stop once we reach $1,000,000 and once cancer is fixed we will still have available funds.

>> No.1080238
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1080238

>>1080204
not if you donate the interest earned every year you fucking idiot

it'd take 125 years to donate $1 million this way you dumb shit

>> No.1080244

the interest you earn on one million is shit op, if you knew anything about finance you would know you need to beat inflation or you'd be effectively losing money, you need about 25-40% returns each year to make it worthwhile.

>> No.1080245

Your forgetting about inflation OP. Inflation > intrest

>> No.1080264

>>1080244
$1,000,000 is a small estimate. The whole point is to always have money to support a something worthwhile.

>> No.1080270
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1080270

Yeah, inflation.

>> No.1080275
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1080275

I think it has been conclusively proven that OP is a goddamn cast iron copper bottomed fucking retard

all in favour of this sentiment say aye

aye

>> No.1080287

>>1080275
Sorry guys, you got me. Is there anyway to make this work?

>> No.1080302

>>1080287
There should be as few middle men in between charitable organizations as possible. I say let the organization itself handle their funds.

>> No.1080307

aye
>>1080287
Nay, tard

>> No.1080333

I vote keep the interest instead. Eventually there will be enough that the interest holds will rival the yearly donations

>> No.1080355

>>1080204
you plan on starting such a big thing and you "believe" it will work this way? Did you do ANY, even simplest calculations? Did you probe the market? do you know how much money can you potentially get?

and sorry, 0,8% interest rate? what the fuck.

and remember, even assuming a pretty standard 5% interest rate, you'd have to run the organization for at least 20 years (or 10, assuming a linear increase in your deposit) to make sure it starts making sense.

>> No.1080367

>>1080355
oh screw me, inflation is a much bigger problem than anything I listed.

>> No.1080370

PROTIP

instead of putting it in a bank account, put it in a hedge fund.

>> No.1080415

I like the idea.

Lets say you could get the big guys to invest here, and do some lawfixing so that this is taxfree. Its called charity.

Lets say you get the big guys to invest some millions. Lets even say Bill Gates put in a million. You end up with 5 millions the first year, and get interest at 25 000 dollar. Then 25 000 dollar is given to charity. And the rest of the money stays in the bank. However, as this looses value due to inflation it has to be invested in different values like stock or property to lower the danger of heavy losses.

I like the idea. It is people like OP that succeed in the world, while the haters here will remain nothing.

>> No.1080446
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1080446

great idea OP, now all you need to do is TAKE A STEP BACK AND LITERALLY FUCK YOUR OWN FACE.

>> No.1080471

Finance major here, although anybody could figure the following out:

Let's say (given your example), you have $1 million and yield $8,000 to be donated. That leaves you with $1 million again at the end of that year. The problem with this is that because of inflation, that money will be less valuable than it was 1 year ago (inflation averages 3%/year).

To compensate, you will need to save an amount of interest to cover the cost of inflation. What if your yield is less than the inflation rate for that year?

Overall I think it's best to donate and spend the money in a more immediate fashion.

I like the idea though OP.

>> No.1080504

>>1080471
What are some alternative methods I can use to protect the funds but also generate a profit? It is people like you who will ultimately breath life into this idea. I know this is possible only because it will benefit mankind as a whole and anyone can agree with that.

>> No.1080510

by the way this is retarded, this is exactly what foundations and charities do. ITS FUCKING COMMON SENSE.

YOUR POST MIGHT AS WELL SAY: I have a great idea guy, im going to get a $1,000,000 loan at 8% and buy trinkets, and then sell it at a 50% markup. At the end of the year I can repay the loan and pricipal and have $420,000 in profit which I can use to run my business indefinitly I AM A GENIUSDERP DERP DERP.

>> No.1080538

>>1080510
See the difference is that I want to help everyone help themselves. Everyone could beat the ever loving fuck out of inflation if we wanted to.

>> No.1080552

>>1080538
Much easier said than done. Ever take an Economics class?

>> No.1080590

>>1080552
No, and I am truly sorry. There are too many things to study and until I figure out what I enjoy I usually just like conversating with people who actually know what the fuck they're talking about.

>> No.1080595

I have a better idea.

You gather funds all year long and put them in an account.

At the end of the year you give all the money it was donated to whatever charity you want, and keep the interest.