System for Publicly Raising Funds from Investors Without a Security

摘要

A business method for a primary nonprofit entity (PNE) to raise capital to finance a money-making project that benefits humanity by publicly raising funds from investors without involving a “security” and hence without invoking the jurisdiction of federal or state securities regulators. In lieu of securities, investors purchase “hearts” from the PNE. Hearts entitle their owner to direct the distribution of a proportionate amount of grant funds paid by the PNE to secondary nonprofit entities (SNEs). When and if the PNE's project is financially successful, it pays investment returns as grants to the SNEs as directed by each heart holder, respectively, in proportion to his or her hearts. The business method additionally includes a means for the PNE to partner with a for-profit entity (FPE) in a manner that integrates the shares of stock issued by the FPE (which are securities) with the hearts issued by the PNE (which are not), so that the amount of grants paid per heart equals the amount of (pre tax) dividends paid per share.