Jay Peroni - Faith Based Investing » Charities

How Will Japan’s Crisis Impact the Global Economy?

Jay Peroni — Sun, 27 Mar 2011 22:40:27 +0000

Slowly Rebuilding

The task of rebuilding will soon begin. With the prospects for stabilization on the horizon, many in Japan are now focusing on the long, slow recovery from this triple crisis – earthquake, tsunami, and nuclear meltdown. The World Bank estimates the loss to Japan’s economy at $235 billion; Japan’s economy minister Kaoru Yosano believes the cost of rebuilding could surpass $250 billion.

While Nissan, Honda and Toyota plants are restarting operations, it will likely be several weeks before the nation’s energy and transportation grids are up to speed, which will hinder Japan’s exports and some of our imports (as an example, Japan eats 30% of the pork products we ship overseas).

What will the near-term impact be for the world economy?

While some analysts are quite pessimistic (Morgan Stanley now tracks U.S. first quarter GDP at an estimate of 2.9% rather than the previous 4.5%), others beg to differ. As Moody’s Analytics chief economist Mark Zandi noted over the weekend, “Japan is still important but it’s a much smaller piece of the global economic pie and much less important to the global supply chain than it has been historically.”

According to Moody’s, Japan’s economy contributed virtually nothing to Asia’s growth during 2005-2010. UBS research indicates that China now accounts for more than 20% of the world’s growth, and that American consumers currently have twice the global economic clout of Japan.

Wells Fargo senior economist Mark Vitner forecast only mild impact to America at a March 21 Florida chapter meeting of the Association for Corporate Growth; he commented that U.S. GDP might simply be reduced by .1% in 2Q 2011 and .2% in 3Q 2011. The World Bank sees growth necessarily accelerating in Japan and neighboring East Asia nations in the second half of 2012.

While Moody’s noted increasing downside risks to Japan’s economy in late March, it did not see an immediate reason to adjust the nation’s Aa2 credit rating, citing that the country possessed “the fiscal wherewithal and creditworthiness” to ride out the effect of the disasters. This show of confidence comes even though Japan has a public debt of $10 trillion (twice the size of its economy). Japan’s GDP was -1.3% in 4Q 2010.

The G7 step up: was this enough?

On March 18, the central banks of the Group of Seven leading world economies agreed to an unusual move: they weakened the yen, which had been trading at an all-time high versus the dollar (Y76.25 on March 16). By March 21, the dollar was trading at Y81.02. The move was designed to aid Japanese stocks and ease the pressure on Japan’s manufacturers, so that Japan’s exported goods and services can remain affordable and competitive in the near term.

Beyond the second quarter, what might the future hold?

We have seen a fairly consistent pattern after economically crippling disasters. Following a short-term drop in output resulting from disrupted and destructed factories and transportation networks, there comes a wave of reconstruction that functions like an economic stimulus. This lessens the hit to the world economy as it boosts the home economy. Assuming the nuclear threat is greatly reduced in Japan in the next few weeks, we could see this economic pattern prove true again.

Berkshire Hathaway CEO Warren Buffett sees a “buying opportunity” emerging from the crisis: “It’ll take some time to rebuild, but it will not change the [economic] future of Japan,” he told reporters in South Korea. Buffett said that if he owned Japanese equities, he wouldn’t sell them. Let’s hope the rest of the world shares his optimism.

Holiday Happiness for Soldiers And Their Families

Jay Peroni — Sun, 19 Dec 2010 18:04:24 +0000

Soldier are Heroes!

Soldiers are heros who offer their lives to serve the country and its beliefs. Taken away from their families, they face life threatening dangers on a daily basis. The holidays are particularly lonely as this special time is meant to be spent with family and loved ones. Many Americans believe it’s important to make the soldiers feel loved and appreciated during Christmas, which is why they have founded many charities that help soldiers and their families to have a happy holiday. Below are some charities that work hard to give Christmas to American soldiers and their families.

Operation Christmas Cards for Troops

What’s it about: The Operation Christmas Cards for Troops collects Christmas cards from people all over the world to send to deployed troops during Christmas. This act helps our soldiers feel remembered during a time when they miss their families and friends most.

How you can help: Extend your appreciation and warm wishes to our soldiers by writing and sending them a holiday card. This is a great way to boost their morale and keep them inspired!

Operation Christmas Aloha

What’s it about: Operation Christmas Aloha is a yearly event that offers the members the opportunity to send our soldiers a Christmas gift. The group believes that what they do is small compared to the service that the military does for the country. This is why they find it fitting to support soldiers by sending gifts and packages.

How you can help: Donate small packages and gifts to Oahu Ohana, who will then send these presents to soldiers during the holidays.

Holiday Mail for Heroes

What’s it about: Holiday Mail for Heroes is a charity by Red Cross that sends out holiday mail to soldiers. The soldiers who perform exceptional sacrifices deserve a boost and inspiration, especially during this particular time of year.

How you can help: You can put smiles on the face of each soldier by writing them a letter. Everyone is invited to send holiday cards to the American service members, their families, and veterans all over the world. The Red Cross workers will deliver these holiday greetings to servicemen in their communities.

Christmas Adopt-a-Soldier Program

What’s it about: Adopt-a-Soldier is a program wherein local families in El Paso invite a Fort Bliss soldier to their home for a home-cooked holiday meal. Fort Bliss and El Paso have teamed up to provide each soldier with a host family to make them feel at home during Christmas.

How you can help: If you would like to be a host family for a soldier, you can simply contact the Adopt-a-Soldier program through their website. Soldiers who would like to be adopted can fill out a form and once their information is consolidated, they will receive the contact information for their host family

Soldier’s Secret Santa

What’s it about: The Soldier’s Secret Santa provides gifts for the children of soldiers by
soliciting donations from grateful and compassionate citizens. Soldier’s Secret Santa was founded to fill a need in the 101st Airborne Division, who was in Iraq. In
December, the unit lost a soldier and this was not only affecting the soldiers in the field, but also their families back at Kentucky. Being that it was the holidays, they decided something had to be done to make sure that their families still had something to celebrate. When they asked for donations during the first year, they were able to raise enough money to help five families and eighteen children. Every family received a card telling them about how much the profession of the soldier is respected.

How you can help: You can help by donating through the website of Soldier’s Secret Santa, or by giving your donation directly to their board members. You can also help the organization by offering your services. All donations go to the children of US Soldiers or to their families.

There are many ways to make our soldiers and their families feel appreciated, and one great way is to donate to one of these charities. Soldiers should experience an abundant Christmas, whether they are deployed overseas or at a US base. Whether you are donating gifts or your time by volunteering, your help will go a long way.

Isabella York is a mother who has dedicated herself to helping other families this holiday season. Along with raising her son, she works for Balsam Hill, a purveyor of Artificial Christmas Trees and Christmas Trees.

Helping Your Favorite Church Or Ministry During Tough Economic Times

Jay Peroni — Mon, 13 Sep 2010 01:28:35 +0000

Tough times hurt churches and ministries too!

The downturn has forced many of your favorite churches, ministries, and charities to amend their services and assistance. They need your help.

Your money can make a big difference to the kingdom! Many people, just like you are coming to the rescue of these organizations with life income gifts and gifts of life insurance – financial moves that have perks for donors as well as the ministries of choice.

Gift annuities. A life income gift, also known as a gift annuity, offers a donor some potentially superb benefits. A gift annuity is a simple agreement with a ministry organization, by which you make an irrevocable gift of cash, appreciated securities or real estate. In return, you (and/or one other person you select) receive a fixed annual income that the arts organization is obligated to pay to you.

Usually, some of this income is tax-free. If you make a cash gift, part of the fixed income payments will be taxed as ordinary income and the remainder will be untaxed. If you contribute securities or real estate that you have owned for a year or more, percentages of the income you receive may be taxed as ordinary income or capital gains, while some of it may not be taxed.
You may also claim an income tax deduction in the year you establish the gift annuity – and if you fund your gift with an appreciated asset, you may eliminate a portion of your capital gains tax.
As a gift annuity can be immediate or deferred (i.e., income payments to you can start this year or in a future year), you have potential for enhanced annual income later in life if a gift is funded today with low-yielding assets.

Life insurance. A gift of life insurance is often welcomed by a minsitry organization, as it is self-completing – the funding objective linked to the gift is fulfilled when the donor passes away.

If you make yearly planned gifts to a non-profit group, you can assign a percentage of your annual donation to a life insurance policy, therefore guaranteeing the perpetuation of your gift.

You can actually make life insurance gifts in several different ways. Here are just a few options:

You can gift a life insurance policy you now own to a ministry group, donate a new policy you buy, or even have the organization purchase a policy on your life and pay the annual premiums (some states don’t permit this last option). You may claim an income tax deduction in the year you do this.
You can name a ministry organization as the primary beneficiary of your policy. While that move won’t bring you an income tax deduction this year, it will bring you a federal estate tax deduction for the full amount of the proceeds payable to the ministry or charitable organization.
You could assign policy dividends to a ministry organization. This creates a deduction as dividends are paid. You also have the chance to amplify the magnitude of your contribution: the dividends could buy a new policy, with the ministry group as irrevocable owner and beneficiary.
Have you accumulated a great deal of assets in a deferred compensation plan or a supplemental retirement plan (SERP)? If so, you face the chance that your heirs might only receive about a quarter of that wealth after income and estate taxes. Some executives and business owners in this situation have exchanged a SERP or deferred comp plan for a split-dollar life insurance policy, which has let them legally avoid the above-mentioned income and estate taxes and direct substantial wealth to the charitable organization of their choice.

Four things to remember with life insurance gifts. One, if you want to receive an income tax deduction in the year you make the gift, the gift has to be irrevocable – you must surrender ownership of the policy. Two, if you make an irrevocable life insurance gift within three years of your death, the amount of the gift will be included in your gross estate. Three, there is a ceiling on the annual charitable deduction you can take – 30% of adjusted gross income (AGI) for gifts to private non-profit organizations, and 50% if the non-profit happens to be a public organization. Four, remember that you can carry excess deductions on charitable gifts forward for up to five tax years.

With fall being an ideal time to revisit your tax strategy, you might want to look into these useful ways of gifting to great organizations.

Charity Spotlight: Choices Medical Clinic

Jay Peroni — Tue, 06 Apr 2010 14:05:33 +0000

In the ongoing struggle to save the unborn, we often times lose sight of the mothers who are pondering this most horrific choice. Many of these girls and women do not realize that there truly is a “choice” other than abortion. They don’t know that there are options out there for prenatal care as well as counseling services.

Choices Medical Clinic is located across the street from the late Dr. George Tiller’s abortion clinic where partial-birth abortions were once performed. Many women who originally sought to have an abortion, have ended up at Choices and have opted for life for their babies and many have given their lives to Christ because of the loving witness of the workers there.

Choices Medical Clinic offers women who are faced with an unplanned or unwanted pregnancy the choice of life for their babies as well as prenatal care and an opportunity to hear the Good News of Salvation through Christ Jesus. Mothers can receive free prenatal care provided by a physician, pregnancy testing and ultrasound examinations. Often times, it is these ultrasounds that are the deciding factor in a woman’s decision to keep her baby.

The volunteers who work at Choices Medical Clinic are Christians. As they talk with the women who come through the doors, they share with them the love of Christ and offer spiritual and emotional assistance as well as the physical assistance. It is this all encompassing mission of Choices Medical Clinic which makes it such a wonderful option. A perinatal hospice program is also offered to women who have been told their unborn babies will either die during birth or shortly thereafter. This is such a blessing to those women who have been urged to have an abortion rather than carry their babies to term.

So in our continued efforts to stamp out abortion, let us not forget the mothers. Let us be there to care for their physical, spiritual and emotional needs. In this way, we can save one life at a time. Please visit their website at http://www.choicesmc.org/index.php.

Charity Spotlight: Food for the Poor

Jay Peroni — Mon, 22 Mar 2010 14:08:38 +0000

I would like to share information about a charity that is near and dear to my heart: Food for the Poor. We have been faithfully giving to this wonderful organization for a few years now. I can’t begin to describe how it has touched my heart and filled me with such a sense of urgency in assisting the poor and needy.

Food for the Poor is a ministry that was established in 1982 to assist the impoverished people in 17 countries in Latin America and the Caribbean. This ministry strives to reflect God’s unconditional love with every person it serves. A Christian organization, it believes that our living Lord can best be served by assisting those in greatest need. In fact, the scripture that is at the core of the ministry is Matthew 25:31-46.

Despite the fact that Food for the Poor is the number one international relief and development charity in the United States, the wonderful people associated with it take the time to call their contributors and thank them personally as well as take the time to listen to prayer requests and pray with them. I’ve talked with a representative at least twice and each time it has been a heart-warming experience. I truly feel the love of Christ and the sincerity in these people. Prayer is an integral part of their ministry and they believe passionately that it is an indispensable part of it.

Food for the Poor operates by raising funds and providing direct relief assistance to the poor, usually purchasing specifically requested materials and distributing them through churches and other charitable organizations local to the areas being served. This amazing ministry feeds 2 million poor every day. The services provided include food, housing, health care, education, clean water projects and emergency relief.

More than 97% of all donations received go directly to programs that help the poor. And what’s wonderful is that Food for the Poor offers many ways you can contribute. You can just make a general donation or become a monthly donor. You can even specify what program whether it be food, education, housing or medical that you want your donation to go to. A personal favorite of mine is their Gift Catalog. This is a very personal way for you to involve your children in selecting “gifts” for those in needs. This can be a dozen chicks, a goat for a family, piglets, educational supplies and so much more. In addition, you can make a contribution in someone’s name.

If you are looking for a charity to contribute to, I ask you to prayerfully consider Food for the Poor. I believe this organization is one that truly seeks to build God’s Kingdom by humbly serving those most in need. You may find out more about them by visiting http://www.foodforthepoor.org.

Andrea Schumann
Assistant to Jay Peroni