<img src="{filedir_1}Innovation-2.jpg" width="290" height="188" class="floatright" />by Jeff Gott, Legacy Partner

At WaterStone, creating ripples in the Kingdom of God is what we do.

Innovation is in our DNA; it is the way we were conceived. When WaterStone was founded as Christian Community Foundation in 1980 the concept of a community foundation wasn’t new. The innovation was in defining “communityâ€ not geographically but ideologically – a worldwide community of Christians, serving one another. The IRS agreed to the innovation and the first Christian community foundation was birthed. WaterStone created ripples.

In 1988, the Christian Community Foundation affiliated with National Foundation, Inc., ultimately becoming WaterStone. In the landmark court case National Foundation, Inc. v. United States, the IRS accepted and reaffirmed in 2008 that NFI/WaterStone’s processes are the gold standard by which the IRS judges Donor Advised Fund programs. This paved the way for what has become a multi-billion dollar strategic giving vehicle. Yet another ripple that benefits generous givers like you.

<h2>How else does this innovative spirit benefit you today?</h2>
WaterStone has continued to innovate. Our passion is to achieve the giver’s objectives by applying every solution in our toolkit. Sometimes that means making an old tool new again.

For example, the Pooled Income Fund has been around since 1969; yet WaterStone will launch its first, a Charitable Pooled Trust, in 2012. The Pooled Trust is similar to a Charitable Remainder Trust (CRT) or Charitable Gift Annuity (CGA) in that it pays income for life to the giver or chosen income beneficiary. At maturity, the remainder balance is gifted to charity.

A Charitable Pooled Trust combines the traits of a CRT and a mutual fund. Mutual funds are broadly understood: multiple people pool investible funds and the resulting investment returns are prorated among the investors. Similarly, the Pooled Trust brings together tax deductible donations and invests collectively in strategic investments, often unavailable to individuals. WaterStone’s underlying investment options have the potential for great yield and reduced volatility and all Pooled Trust income earned is paid out annually to the income beneficiary.

Given our innovative and entrepreneurial mindset, we’ve been planning the product launch for some time, yet have waited to launch in 2012 to maximize charitable tax benefits. By waiting, the WaterStone Charitable Pooled Trust will provide 2-3 times more current year charitable tax deduction than a CRT or CGA! Will the 2012 WaterStone Charitable Pooled Trust create more ripples? We believe so!!

Please contact us to explore your participation in the 2012 WaterStone Charitable Pooled Trust launch! Let us help you turn ripples into waves of Kingdom impact!

For a print version of the entire fall 2011 Ripple Effect newsletter, <a href="{filedir_1}RippleEffect_Newsletter_2011.pdf">download the pdf</a>.