Investors need places to put their cash assets for a multitude of reasons, including tax offset and avoidance. Of course, the other aspect of investing is to make a profit. Alternatively, conscientious investors have become increasingly frustrated with corporate irresponsibility. Maybe some investors are realists and understand that how they invest may and will come back to bite them. Investment in a dirty industry or a product that fails to consider carbon offsetting is an investor problem, too.
How can smart investors "invest" in Green Investments while still holding onto the principal of the cash value of the investment? Green Street projects are ideas and concepts that mitigate the consequences or offset climate change. See more about Green Investment Street as an alternative here. You are an inventor, for example. You have a Green concept that can help mitigate climate change or assists in the mitigation of the impacts of climate change. What business form do you adopt? How do you entice private money to come to you? You can take your idea and build it around the private Trust strategy discussed in another Tribal Consultants blog post
We feel convinced because we are told that to gain funding for a start-up concept, we must incorporate (for profit) or ask the Internal Revenue Service for 501 c3 status to receive grants or donations. While those certainly are options, it turns out a start-up can begin as a private trust and leverage the basic motivations of investors and why INVESTORS invest to obtain their liquid working capital.
An alternate option is within your Trust itself. All trusts have what is called a RESIDUARY. The residuary of a trust is essentially what is left over. There are separate mechanisms available for funding the residuary of a trust which can be built into the Trust document. By doing so, you utilize and create value in the residuary as a basis to entice investors to invest in your private Trust and business. When the Trust document adopts these mechanisms and has several income streams that can lead to funding the residuary, the more secure the streams are in actual funding the residuary acts as leverage and can create the basis for creating your Trust's unique cryptocurrency. Helen has kicked around the idea of leveraging the residual of an irrevocable trust for developing a cryptocurrency and is a viable option in many cases. It is suggested to adopt the 214 alpha private blockchain
A unique cryptocurrency can be a basis also to the degree your business or concept actually offsets carbon to participate in the growing carbon trading (cap and trade) systems that are likely to become the dominant mechanism to address climate change. Helen personally doesn't agree with the cap and trade system for the following reasons here To meet the required reductions in total greenhouse gas emissions to overt total climate collapse will require stricter reductions than cap and trade systems can provide due to a lack of knowledge inherent to trace, track and reduce all emission sources and lack of honesty particularly in a reporting based system. Nevertheless, here lies the importance of Green Street projects that can either reduce greenhouse gases or mitigate greenhouse gas impacts from adoption of a best science and technological improvement perspective. Try investing SMARTER in SMART projects and services.
Cryptocurrency from a Green service and product that quantitatively and/or qualitatively is the basis of the value of the cryptocurrency (not like the investor bubble effect that causes the boom and bust cycle notoriously felt in 1929 and 2007, or NFTs deflation generally. "A realistic use case of cryptocurrencies, Novogratz said, could be tokenized securities: they will still be traded as securities but with enhanced security thanks to a blockchain infrastructure [citation available]." Your private Trust offers another aspect within Trust law that allows the issuance of BENEFICIAL SHARES of the Trust's residuary (already established as having actual income streams and funding mechanisms in place).
What is a beneficial share of the trust? It is a form of security that is used to bootstrap an otherwise viable business. Helen suggests a 1:1 (for every dollar invested, the party
gets exactly 1 unit) as the residuary allows. Alternatively, your Trust can issue a certificate to the investor redeemable for services from a trust-owned business. This allows cash-infused investors to avoid reporting the cash in their portfolio for the investor's tax reporting purposes while still mobilizing and working cash sitting around. This is an enticing opportunity given the current limitations in the economy due to Covid-19, or generally a lack of real Green investment opportunities available at-large. The Trust becomes the beneficiary for an interest-free “loan” (albeit IRS says there is the possibility of interest applying even if the terms of the contract between the Trust and an investor indicate no interest will apply). The good news is the cash reverts to the investor. Who benefits? The Green Start-Up and the investor both win. Mother Earth wins when we all do more to mitigate human consumption practices and eliminate or reduce all forms of pollution. If you are a business owner of a GREEN concept - established or not or is a conscientious INVESTOR then you can Learn more here
Cutting edge? Yes. Known but general knowledge available only to the rich and famous. Do it smarter.
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