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the not for profit hedge fund.

This one is pretty counter intuitive and frankly I am unsure of how it would work. Let’s say you can successfully register a hedge fund or private equity firm as a non profit. You take donations that are then invested in approved causes that are expected to produce a return on the investment. Typically, the world of charity is mutually exclusive from the world of hedge fund investments.

In practice, I doubt this sort of structure would be possible. At first I thought, ‘what if there was just a hedge fund out there like a typical Cayman Island domiciled tax haven type that just donates all it’s profit to charity’. It does not exist. I don’t know who would invest for zero return without any tax write off benefit and let’s face it sometimes the most lucrative investments are not the most… friendly.

Overall, I will file this under not one of my best attempts.