Mystic Charity Ventures
What We Do
Mystic Charity Ventures (MCV) has funding for innovative ways to advance healthcare. MCV provides an entrepreneur starting a healthcare company a new way to attract investors. Through MCV investors are also donors, receiving a tax-deductible charitable contribution and acquiring an ownership interest in the startup. The attached diagram illustrates how the funds of a “donor/investor” may be deployed:
Here’s How It Works
These separate and independent transactions are executed: One, an entrepreneur applies to MCV for an amount of money required to launch the startup and a non-confidential, written presentation of how the startup’s services or products would advance healthcare and a business plan for the startup. Once qualified, the startup is a candidate for a grant, loan or stock purchase by MCV. Two, a tax-deductible charitable contribution to MCV is made by a “donor/investor” before, after, or concurrent with purchasing stock in the startup. In the illustrative diagram, $200,000 is required to launch the qualified startup. The “donor/investor’s” tax-deductible charitable contribution is $189,000. Three, the “donor/investor” purchases 10% of the startup’s common stock for $20,000. Four, after confirmation that the transactions are structure to qualify as a tax deductible donation and at the sole discretion of the directors of MCV, a portion of the “donor/investor’s” contribution is transferred to the startup, for example, in the form of a grant of $180,000. A $9,000 transaction fee is retained by MCV. In the future, additional tax-deductible charitable contributions may be made by the same or other “donor/investors” if needed as required by the startup’s operations.
About Mystic Charity Ventures
The mission of MCV is to advance healthcare through charity. Charity in the form of grants, loans, and stock purchases of startups based on new ideas for devices and treatments to combat disease and other healthcare challenges.
MCV is a dba of the Mystic Order, a non-sectarian, metaphysical 501(c)(3) organization under the laws of the State of California (Tax ID No. 81-4323094). Currently, its directors are all unpaid volunteers. The purpose of the transaction fee is to grow the fund so additional grants, etc., may be made to worthwhile “healthcare” startups.
The directors decide how to allocate the money in the fund, and take any appropriate action needed before accepting any donations from any “investor/donor.” Of course, each “investor/donor” must have his or her tax advisor confirm that (a) the donation qualifies as a charitable tax deduction, and (b) is advantageous, offering a significant tax savings.
The reality is that most startups fail.
So consequently, initial investors will most likely lose their investment. If the startup is a subchapter S corporation, they may be able to claim tax-deductible losses in the year incurred. But their tax bracket may be much lower than at the time the investment was made. For investors in the higher tax brackets it would be advantageous to claim a charitable tax deduction immediately rather than wait until failure of the startup. MCV provides an incentive to higher tax bracket individuals to make a very risky investment that hopefully will bring more than just monetary rewards. We believe that the initial financial support provided by MCV will aid several 21st Century Healthcare Companies get started and be of great benefit to humankind.
John J. Connors, Chairman of the Board and Co-founder
For more information, contact us.