PureGive.Org

puregive

GENERAL INFORMATION ON FRONT PAGE

According to the US Census Bureau, nearly half (48.5%) of the US population live in households that receive some type of government benefit. This is up from 30% in 1983. (WSJ Oct. 5, 2011)

Government benefit programs are unsustainable and usually only serve to exacerbate the problem. The Dept. of Agriculture reports that 1 in 7 (over 44 million) Americans receive food stamps every month (WSJ Feb. 2, 2011). Government programs like food stamps don’t work because they fail to address the root cause of the problem. To be successful, those receiving benefits must be held accountable and given incentive and direction to improve and make lasting changes. Private charities that do exist are often burdened with overhead and designed to enrich bureaucrats while leaving little for their true purpose. PureGive seeks to provide in a better way!

PureGive is a distributed social network of people helping people. The PureGive mission is to commit all contributed resources to help others improve their lives and ultimately become self-reliant and successful. The PureGive model is based on the following four principles:

1. FULL COMMITMENT OF RESOURCES: 100% of donated resources are distributed to Beneficiaries associated with that cause designated by the Donor. This is made possible by the Puregive technology, branded merchandise sales and its volunteer network.

2. DECENTRALIZED ALLOCATION OF RESOURCES: A volunteer network of religious, civil and other community leaders (Sponsors) are empowered with access to financial and non-financial resources allowing the decentralized distribution of benefits. Rather than one centralized body making impersonal distribution decisions (government model), Sponsors develop personal relationships with Beneficiaries and are best positioned to make meaningful and lasting changes in their lives.

3. BENEFICIARY ACCOUNTABILITY: Beneficiaries work with Sponsors to make and keep personal goals required to receive benefits, leading them toward self-reliance and success.

4. DONOR INFLUENCE: Sponsors control the distribution and Bankers control the investment of contributed funds; however, Donors influence how their donations are handled through “preferences” and “Personal Charity Funds.”

PureGive creates a network of Donors, Sponsors and Beneficiaries who all play an important role in the PureGive cycle of success. Those with means (Donors) are able to direct their excess to help those in need (Beneficiaries) in the most efficient and effective manner possible. Beneficiaries are held accountable and are required to report to community leaders (Sponsors) who are best positioned to provide both the financial help and mentoring needed to turn their lives and become self reliant and successful in life. Our goal is to help Beneficiaries become Donors and Sponsors one day.

FULL COMMITMENT OF RESOURCES

PureGive fosters a corruption-free culture of giving with pure intent. Made possible by a volunteer network of Sponsors who oversee the distribution of financial and non-financial resources to Beneficiaries. Sponsors give of their time and talents while receiving no monetary compensation for their work. Further, PureGive managers and directors also receive no personal monetary compensation. Accounting for administrative costs is fully transparent and posted on the PureGive.com website. PureGive Donors are confident that every penny contributed goes to that very purpose for which it is intended. No other charity, religious institution, school or club can make this claim.

PureGive administrative costs are self-funded by sales of branded merchandise and contributions designated to support administrative costs. If the Donor chooses not to contribute to administrative costs, 100% of the donation goes to that purpose designated by the Donor. If the Donor chooses to contribute to the administrative costs, only that portion designated by the Donor will be used for administrative costs and 100% of the remaining contribution will be used for that purpose for which the donation is intended.

DECENTRALIZED ALLOCATION OF RESOURCES

As in traditional charity models, Donors give and Beneficiaries receive. However, the PureGive cycle of success is a better model, made possible by a network of volunteer intermediaries called Sponsors. Sponsors allow for decentralized decision making where a more informed and effective hand of assistance can be extended to the Beneficiary. Sponsors distribute the funds. But Sponsors are also qualified and mandated to provide counsel and direction to Beneficiaries. Sponsors are charged to make judgments as to the worthiness of the Beneficiary before funds are distributed. Beneficiaries are held accountable and are required to meet Sponsor determined criteria to ensure that benefits are temporary in nature and not used to sustain long-term lifestyles. Most Beneficiaries are required to make lifestyle changes before receiving funds. Sponsors help Beneficiaries make meaningful and lasting changes in their lives.

Sponsors are community leaders including religious clergy, elected officials, judges, leaders of other charitable organizations and other community leaders who meet the necessary qualifications. Donors have the option to designate a specific Sponsor for the distribution of funds donated or opt to allow PureGive to allocate funds to Sponsors according to needs. Sponsors are intermediaries in the sense that they connect Beneficiaries with Donors and visa versa. While assisting in the financial needs of the Beneficiary, Sponsors are in a unique position to make lasting changes in the life of the Beneficiary by encouraging and directing the Beneficiary towards a path of independence and success.

BENEFICIARY ACCOUNTABILITY

An emphasis is placed on helping others help themselves. Sponsors are charged to make judgments as to the worthiness of the Beneficiary and ensure that Beneficiaries are not using donated funds to enhance or sustain lifestyles. Sponsors only distribute funds and resources to correct short-term problems and to put the Beneficiary on a path to financial independence and success.

Beneficiaries are required to give back to their community. Community service opportunities are recommended to the Beneficiary by the Sponsor. Sponsors are able to identify community service opportunities or reference the PureGive website where community service opportunity requests are posted by people and other organizations in need. After the Beneficiary completes the assigned service, the Beneficiary is required to return and report to the Sponsor. At this time, the Sponsor has a unique opportunity for positive reinforcement and to provide further direction to the Beneficiary.

DONOR RESPECT

PureGive recognizes the tremendous sacrifice made by Donors and places a high level of importance on donated funds. PureGive does everything legally possible to allow Donors to call the shots when it comes to how those funds are handled. All Donors have the opportunity to select preferences for the distribution and investment of their donated funds. Preferences are set by the Donor and can be attached to specific donations or all donations made by the Donor.

Qualifying Donors have the opportunity to create a Personal Charity Fund (PCF). A PCF provides each Donor with their own web page where preferences can be set and the selection of Sponsors and allocation of funds to Sponsors can be made. The web page also includes a full accounting of the Donor’s funds contributions, disbursements and balances. Under a PCF, a Donor makes an irrevocable contribution to PureGive, and, in turn, receives an immediate tax deduction; however, the PCF is able to carry a balance of contributed funds that can be tracked by the Donor and allocated to Beneficiaries by Sponsors as needs arise. The investments of the PCF are controlled by a PureGive Banker; however, the Donor has the option to select a Banker from the PureGive family of Bankers and both make recommendations and provide advice concerning the fund’s investments. The distributions of the PCF are controlled by a PureGive Sponsor; however, the Donor works with the selected Sponsor from the PureGive family of Sponsors and makes recommendations and provides advice concerning the fund’s distributions.

OPERATING POLICIES AND PROCEDURES

Disbursements are controlled by PureGive qualified Sponsors to whom funds have been allocated by Donors. Sponsors make disbursements by either cutting checks from the PureGive website or charging payments to a PureGive debit card issued to the Sponsor. Checks cut from the PureGive website are signed by the Sponsor manually and co-signed by the CEO of PureGive electronically. Check requests are submitted to PureGive and approved and co-signed within 24 hours unless a rush request is made and checks can be co-signed within one hour of the request. PureGive check stock is pre-numbered and issued to the Sponsor. Approvals are automatic for disbursements that fall under the Sponsor’s materiality threshold to a payee on the approved list for that Sponsor. Sponsors have access to real time account balances on a personalized web application.

Sponsors are ranked based on individual credentials, references, and longevity and success within the PureGive network. Sponsor levels from the highest rank possible (Bristlecone) to the entry level (Joshua) are named as follows: Bristlecone, Foxtail (Bristlecone in training), Ponderosa, Fir, Pinion and Joshua. The hierarchy of Sponsor levels is used to determine audit requirements and materiality thresholds for Sponsors. Applications for Sponsor advancements are submitted by Sponsors and reviewed and approved by unanimous board approval.

Beneficiaries who are denied benefits from a Sponsor are permitted to apply for benefits from another Puregive Sponsor with a superior Puregive rank. Before distributing benefits, the superior Sponsor must also review the benefits history of the Beneficiary and sign-off on the denial of claim submitted by the subordinate Sponsor who denied the original claim for benefits.

Approved payees include hospitals, schools, churches, banks, mortgage companies, landlords, food and drug stores, emergency supply companies, utilities, etc. Also included as approved payees are other 501(c)(3) corporations such as theatre companies, clubs, charities, and other qualifying organizations. Approved 501(c)(3) organizations are carefully scrutinized to confirm they have the same fundamental principles of pure giving that exist at PureGive. Individuals are never approved as payees (the rare exception is when a landlord is approved who is an individual and submits adequate documentation).

Sponsors are relieved of the opportunity to continue to serve as a Sponsor immediately if they or a member of their family becomes a PureGive Beneficiary. Sponsors are not permitted to distribute funds to themselves or any member of their immediate or extended family. Sponsors are permitted to recommend family members to other Sponsors. Donors can also be Sponsors but Donors are prohibited from sponsoring the distribution of their own donations.

Donors are able to make donations online by credit card or by check directly to PureGive. A donor form or web application is used by the Donor to designate a Sponsor and distribution preferences at the time the donation is submitted. Donors can log on to a personalized web application which includes a detail of past donations and distributions, current account balances and detailed preference options for both distributions and investments. PureGive also partners with employers to allow employees to make regularly scheduled donations that are deducted pre-tax from the employee’s paycheck.

FOOD COOPERATIVE

The PureGive Food Cooperative (“Co-op”) provides Beneficiaries with fresh, quality food at substantial savings. The Co-op allows PureGive Beneficiaries to purchase food at a low cost by increasing the purchasing power and eliminating the middleman’s profits. The prices of the food range from 30 to 50 percent lower than what you would find at the grocery store. The Co-op has three different programs to get the food to Beneficiaries: 1) Monthly Pickup, Beneficiaries send in orders and payments through the mail, 2) Monday Market, warehouse sales at a discount to ensure that unused food over the weekend does not go to waste, and 3) Mobile Market, takes food to some of the neediest Beneficiaries. The Co-op is entirely run by Beneficiaries.

TAX COMPLIANCE

PureGive is a qualified tax-exempt organization under section 501(c)(3) of the Internal Revenue Code. PureGive is organized and operates exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings inure to any private shareholder or individual. Under the provisions of section 501(c)(3), PureGive is eligible to receive tax-deductible contributions in accordance with Code section 170. A Donor can earmark a charitable contribution for a particular purpose and claim a deduction if the restrictions are consistent with the charity’s tax-exempt purpose, and the restrictions do not prevent the charity from freely utilizing the transferred assets [(Reg. Sec. 1.507-2(a)(8)(i)]. Restrictions proposed by the Donor cannot create a conduit to direct the gift to be channeled to a particular person [Estate of Hubert v. Comm’r, TC Memo. 1993-482]. Under the PureGive concept, the Sponsor and Banker have control over the funds and the Donor is only allowed to have influence on how the funds are invested and distributed.