In support of the Walsh finance lab and the Walsh student investment club, an account has been established within the Walsh College Foundation to accept funds that individuals or corporations wish to donate through the Foundation to the Michigan Alpha Project (MAP). This ongoing project will provide opportunities for Walsh finance students to gain real-world investment experience, and a competitive advantage for job placement upon graduation.
Walsh College and LJPR have indicated two routes of participation in the Michigan Alpha Project, which are outlined below. If you’d like more information, use the contact form on the left or see the respective LJPR and Walsh College contacts below.
Earmarked Donation to the Foundation: Prospective donors can make an outright donation to the Walsh Foundation and earmark it to ‘Michigan Alpha Project’. The contribution is likely fully tax deductible (consult your tax advisor). LJPR will accept marketable securities for the donation (they do not have to be Michigan stocks). The funds will be invested in the Foundation’s MAP account. LJPR does not charge any investment fees on the portfolio for the Walsh Foundation. Donations of any size can be made to the MAP, but $1,000 and above are suggested. While it is the intention of the Foundation to maintain the MAP account, the Foundation reserves the right to withdraw principal and earnings from its MAP account at any time in its sole discretion if it determines such funds are needed to meet its stated objectives. If the MAP ceases to exist, all funds in the Foundation’s MAP account will be transferred to the Foundation’s general fund.
Direct Investment in the MAP: Prospective participants that want to participate and retain the money (and the proceeds) can also participate in the MAP. LJPR has agreed to run ‘parallel portfolios’ of the MAP. Said portfolios can be taxable or nontaxable (e.g. 401(k), IRA, Roth IRAs or foundations or other tax-exempts). LJPR has agreed to run the parallel portfolios for no investment management fees (The custodian will receive a trading fee on trades). Some guidelines:
• An account will be established at Charles Schwab (or TD Ameritrade or Fidelity) in the name of the MAP investor.
• A MAP investor will give a Limited Power of Attorney (LPOA) to LJPR to execute the trades.
• A MAP investor must agree that they are responsible for all taxes, and that they accept the premise of the MAP investment concept as an equity component of a total portfolio, and that such MAP portfolio is geographically and potentially industry concentrated.
• All proceeds (dividends and gains) inure to the MAP investor, who is encouraged to donate all or a portion of the profits to Walsh Foundation.
• MAP participants receive tax deductions only for the amount they actually contribute from the MAP portfolio to the Walsh Foundation. Tax-deferred accounts cannot contribute to the foundation (except in the case of Qualified Charitable Donations from IRAs, if such tax law is extended).