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Method of Receipt on Donation and Delivering Fair Market Valuation of Same

Method of Receipt on Donation and Delivering Fair Market Valuation of Same

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Published by Chris Ryan
Empowering Charities in Having Opportunity in Capturing Additional Donations at the Point of Delivery
Empowering Charities in Having Opportunity in Capturing Additional Donations at the Point of Delivery

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Published by: Chris Ryan on Feb 09, 2011
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02/09/2011

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MethodofReceivingStock,Donatingit,andReceivingFairMarketValuationforSame
UnitedStatesPatentApplicationChrisRyanDecember6,2010Charitiestodayduetotheeconomyaresufferingwhathasbeentermed"donorfatigue"andtheneedforcharitiestoincreaseoperationalefficiencyisacriticalcomponentforsurvival.Onewaycharitiescanincreasedonorcontributionsisbyofferingcontributorsadditionalvalueaddedservicestotheirdonorsandpropertythattheydonate.Mostcontributorstoacharitablecausearedoingsoforthetaxdeductionofthepropertycontributed.InlightofthistheIRS,haspassedseveralInternalRevenueCodes(IRe)toestablishproceduresandpolicytothevaluationandacceptanceofcollateral.Thesecodesrequirethecontributortoprocurevaluationopinionsforpropertydonated,whichplacesbothriskandburdenuponthedonor.Thistranslatesintopropertyandassetsnotbeingdonatedtothecharity.Methodofreceivingstock,donatingitandreceivingafairmarketvaluationforsameisasystemwhichgeneratesamultiprongedanalysisofthecontributionscenario.Itconsistsofanalysisof:thestocktobecontributed;thedonation;thecharity;andtheindividualorentitydonatingtheproperty.Lasttheanalysisgeneratesacertificateofdonationforthedonorfromthecharitywithalllegalopinionsandvaluationanalysissupportbehindit.Thisisalldonetocreateasimultaneousturnkeydonationenvironment,forthebenefitoftheCharityleveragingserviceandtiming.
CLAIMS
1.
AmethodinsupportofaCharityhavinginvestorswhopurchasedSingleStockFuturesContract(s)totakedeliveryoftheunderlyingsecurities.2.AmethodshowingandsupportingthevaluationofthesharesinsupportofaCharityhavinginvestorswhopurchasedSingleStockFuturesContract(s)totakedeliveryoftheunderlyingsecurities.3.AmethodofdeliveringtoInvestorswhotakedeliveryofsharesunderlyingSingleStockFuturesContract,thatthesharesareunrestrictedunderrule144.4.AmethodshowingandsupportingthevaluationofdonatedsharesbyanInvestorwhotakesdeliveryofthesharesunderlyingasinglestockfuturescontract.5.AmethodofdeliveringtoInvestorswhotakedeliveryofsharesunderlyingSingleStockFuturesContract,anexpertopinionthatthesharesdonatedtoaparticularCharitywillreceiveacertainpercentageoftaxdeductionfromincometaxes.6.AmethoduponreceiptofpaymentfordeliverytosimultaneouslyissuingthesharestorecipientwhotakesdeliveryofthesharesunderlyingtheSingleStockFuturesContract.7.AmethodinsupportofaCharityofsimultaneouslyissuingareceiptofsharesfromDonor.
 
8.AmethodinsupportofaCharityofsimultaneouslyissuingavaluationopiniontoDonorwhodonatessharesfromthedeliveryofsharesunderlyingtheSingleStockFuturesContract.9.AmethodissupportoftheCharitytoissuetodonoranexpertanalysisandopinionofthecharitiesstandingwiththestateregisteredin,andIRSstatus.10.AmethodissupportoftheCharitytoissuetodonoranexpertanalysisandopinionthattheCharitystructurewillaffordacertainpercentagedeductiontodonor.11.Amethodofexecuting1-10aboveinasimultaneousmanner.
DESCRIPTIONCROSS-REFERENCETORELATEDAPPLICATIONS
[0001]Thepresentapplicationclaimsnopriorityfromanypreviouslyfiledprovisionalapplicationsforthebenefitoftheearlierfilingdatesofwhichisherebyclaimedunder35U.s.c..sctn.119(e),andeachofwhicharefurtherincorporatedbyreference.
FIELDOFINVENTION
[0002]ThisinventionrelatestoaCharitynon-profitmethodofraisingcapitalbyhavingpurchaserswhohaspurchasedfromCharityaSingleStockFuturesContract(SSFe),(representingtherightofpurchasertotakedeliveryofthesharesunderlyingtheSSFCsometimeinthefuture)inpayingtheCharitythefuturecostoftakingdeliveryofthesharesunderlyingtheSSFC.ItisasystemwhichcreatesamechanismwherebytheCharitycanexecutedeliveryofthesharesunderlyingaSingleStockFuturesContract,bygivingthepurchaseranopportunitytocaptureasimultaneousvaluearbitrage,byreceivingthesharesandsimultaneouslydonatingthemtoa501(c)(3).Thevaluecreatedinthisarbitragescenariocanbythisinventionbesimultaneouslydemonstratedandsupportedwiththirdpartyexpertopinions,whichcanleadtotheCharitygivingtheDonoraninstantCertificateofDonationorReceiptofDonation(representingsharesdeliveredanddonatedundertheSSFC)withvaluationofdonationwithsupportdocumentationattached.ThisinstantCertificateofDonation/receiptallowsdonortheoptionoflockinginthevaluecreatedunderthedonationandreceivingthefairmarketvaluationofthestockdonatedunderInternalRevenueCode(IRe)1234(b)thusallowingdonoranoptionoflockinginvalueandmitigatingthemarketriskofsellingacquiredsharesintheopenmarket.
BACKGROUNDOFTHEINVENTION
[0003]Charitiesregisteredundersection501(c)(3)(Charity)areallowedtoissuesharesviaanexemptionfromSecuritiesandExchangeCommissionregistration.OnetypeofsecurityaCharitycanissueisaninstrumentcreatedbytheCommodityModernizationActknownasaSingleStockFutureContract(SSFe).ThiscombinationcreatesanopportunityforaCharitytobetherecipientofdonated/giftedshares(public/non-publiccompanies)andtodistributethemtoprospectivepurchasersviatheissuanceoftheissuespecificSSFC,representingacontracttogivethepurchaser(s)therighttotakedeliveryofthesecuritiesunderlyingtheSSFCinthefuture.ThisSSFCsaleallowsaCharitytoreceiveimmediatepremiumincomewhileaffordingittheabilityofreceivingadditionalincomerepresentingthedeliveryofsaidsharesunderlyingtheSSFCtopurchaserswhodecidetotakedelivery.Inorderforpurchaserstotakedeliveryaclearcommunicationofvalueandreceiptofsamemustbeprovidedina
 
seamlesssimultaneousenvironmentwhichthisinventionsmechanismcreates.Inordertounderstandthebackgroundoftheinvention,currentbusinesspracticesarepresentedbelow,followedbylegalframeworks,structuresandtoolsavailabletoconductbusinesstransactionsunder
u.s.
law.[0004]CurrentBusinessPractices[0005]IRG-IrrevocableRegistrationGuarantee-Ainstrumentofferedbyalawfirm,confirmingtocompanythatitwillhaveacalssofsecuritiesregisteredundersection12(g)ofthe1934Act.[0006]EXSO-exemptsecuritieslegalopinion-otherwiseknownasarule144legalopinionisalegalopinionissuedtoapurchaserofastockthatthesharesacquiredareavailableforexemptionunderCodeofFederalRegulationstitle17.230.144.Rule144-Rule144,promulgatedbytheSECunderthe1933Act,permits,underlimitedcircumstances,thesaleofrestrictedandcontrolledsecuritieswithoutregistration.Inadditiontorestrictionsontheminimumlengthoftimeforwhichsuchsecuritiesmustbeheldandthemaximumvolumepermittedtobesold,theissuermustagreetothesale.Ifcertainrequirementsaremet,Form144mustbefiledwiththeSEC.Often,theissuerrequiresthatalegalopinionbegivenindicatingthattheresalecomplieswiththerule.Theamountofsecuritiessoldduringanysubsequent3-monthperiodgenerallydoesnotexceedanyofthefollowinglimitations:1%ofthestockoutstandingTheavgweeklyreportedvolumeoftradinginthesecuritiesonallnationalsecuritiesexchangesforthepreceding4weeksTheavgweeklyvolumeoftradingofthesecuritiesreportedthroughtheconsolidatedtransactionsreportingsystem(NASDAQ)NoticeofresaleisprovidedtotheSECiftheamountofsecuritiessoldinrelianceonRule144inany3-monthperiodexceeds5,000sharesoriftheyhaveanaggregatesalespriceinexcessof$50,000.Afteroneyear,Rule144(k)allowsforthepermanentremovaloftherestrictionexceptasto'insiders'.Incasesofmergers,buyoutsortakeovers,ownersofsecuritieswhohadpreviouslyfiledForm144andstillwishtosellrestrictedandcontrolledsecuritiesmustrefileForm144oncethemerger,buyoutortakeoverhasbeencompleted.[0007]CMA-CommodityModernizationAct-isUnitedStatesfederallegislationthatclarifiedmostover-the-counterderivatives("OTCderivatives")transactionsbetween"sophisticatedparties"wouldnotberegulatedas"futures"undertheCommodityExchangeAct(CEA)oras"securities"underthefederalsecuritieslaws.Instead,themajordealersofthoseproducts(banksandsecuritiesfirms)wouldcontinuetohavetheirdealingsinOTCderivativessupervisedbytheirfederalregulatorsundergeneral"safetyandsoundness"standards."Functionalregulation"ofderivativesproductsbytheCommodityFuturesTradingCommission(CFTC)wasrejectedforcontinued"entity-basedsupervisionofOTCderivativesdealers.[0008]SRL-ShareholderRepresentationLetter-Aletterfrompurchasersofstockseekingarule144opinion,pertainingtohowtheshareswereacquired,dateandaffiliationtotheissuer.

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