Legacy Endowment Bond Explained

The LEGACY-ENDOWMENT BOND is a bond offering issued by the Soto Mission of Aiea, Taiheiji. The “BOND”* is very similar to a 20-year U.S. Treasury Bond that currently pays 1.46% interest as of 12/30/20 (down from 2.18% in 2019). Our “BOND” will also be for 20 years, but will pay a 3% fixed annual interest. After the 20-year period, the “BOND” owners will receive the final interest payment AND the principal investment amount back IN FULL.
*This bond offering is an investment. It is not a donation. All interest received would be fully taxable.

How much is Taiheiji seeking to raise?
The “BOND” goal amount is ONE MILLION DOLLARS.

UPDATE: Although Taiheiji reached its goal of raising $1,000,000 in early October 2021, $189,000 of those purchased bonds were generously donated back to the temple, of which $30,000 is still available for purchase.

What is the bond for?
The “BOND” will be used for a large capital improvement project that includes tearing down the aging Japanese School building and replacing it with the construction of the Soto Mission of Aiea Activity Center—a new multipurpose building.

Why do it?
This will be just the beginning of what will become our current temple generation’s legacy. This project would certainly help make Rev. Shuji’s shared vision and dreams become a reality.

When will it start?
The “BOND” went into effect on January 1, 2022.

How will the temple pay for the interest and principal?
We are very pleased to announce the commitment of the HAWAII KANSHA FOUNDATION. The foundation has pledged to help ensure the success of the LEGACY-ENDOWMENT BOND by donating an annual monetary gift that more than covers the annual interest payments of the “BOND” (with the excess amounts invested into the temple’s Legacy-Endowment Fund account). It has been projected that the total annual excess funds invested into the Legacy-Endowment Fund account over the course of 20 years will be in excess of ONE MILLION DOLLARS.

How will the bond be recorded?
The “BOND” purchases are recorded using the commonly practiced method of proper accounting procedures referred to as “book-entry.” All investments and payments will be recorded into the temple’s accounting records.

How much will it cost?
Each “BOND” is valued at ONE THOUSAND DOLLARS and can only be purchased in one thousand-dollar increments.

Are there any limits?
The minimum amount is ONE THOUSAND DOLLARS. While there is no maximum established, any large purchase should be made only after consulting with a tax advisor. Our goal is to reach the ONE MILLION DOLLARS by sharing the opportunity and the experience with many of our members and supporters—not just a few.

Who can buy?
The “BOND” issue is being offered to anyone who wishes to support Taiheiji. It is not available to the general public.

Who will manage the funds?
Two temple accounts have already been established with AMERIPRISE FINANCIAL SERVICES, INC. The new “LEGACY FUND” account initially holds all funds collected from the “BOND” issue. These funds will then transfer to the new “BUILDING FUND” account to pay for construction expenses. The “LEGACY FUND” will then be used to hold all annual gift payments from the HAWAII KANSHA FOUNDATION and to distribute all interest payments and the final principal payment when due.
With everyone’s support, the “LEGACY FUND” will eventually create the “ENDOWMENT FUND,” to provide sustainability and assure us that the SOTO MISSION OF AIEA, TAIHEIJI will be able to continue its mission in perpetuity.
AMERIPRISE FINANCIAL SERVICES, INC. provides monthly statements to selected temple board members that show transactions and investment performance. The entire board of directors provide oversight within their Fiduciary responsibilities.

How do I participate in the Bond?
Although the twenty-year Bond has already begun, some of the previously purchased bonds were donated back to Taiheiji and are still available. Please contact Rev. Shuji as soon as possible to purchase the remaining bonds available.

How much do I have to purchase?
The minimum bond purchase is one thousand dollars, and is available in one thousand-dollar increments. While there is no maximum amount set, it is highly recommended that you consult with your tax advisor before making a large purchase.

How can payments be made?
Payments can be made in different ways. Other than lump sum, payments can be made in increments that suit your circumstances. Direct payments to a temple account can be arranged and possibly credit card payments may also be arranged.

When will the Bond begin to accrue interest?
The “BOND” began to accrue interest on January 1, 2022.

When will interest payments be received?
The fixed interest rate payments of 3 percent will be sent out by the temple by the end of February following each anniversary period. After the 20-year period, the final interest payment and the return of the principal investment amount IN FULL will be made.

What happens in case of a death prior to the end of the 20-year period?
Each investor will need to fill out an information document upon purchase of the bond which includes Beneficiary Designation. As with all investments of this nature, everyone is reminded to contact the temple immediately to update any beneficiary change or other important information.

How will the Bond be recorded?
The bond purchases will be recorded using the commonly practiced method of proper accounting procedures referred to as “book entry.” All investments and payments will be recorded into the temple’s accounting records. Additionally, everyone will receive a receipt document for the bond purchase. The receipt document will be sent out to bond holders in February 2022.

Can anyone purchase this Bond?
This bond is not available to the general public. It is only available to Taiheiji members and supporters. However, we define supporters as someone who has a shared interest in assuring the continued success and perpetuating the mission of the Soto Mission of Aiea, Taiheiji.

Can I use this as a tax deduction?
No, purchase of the bond is not tax deductible. Furthermore, the interest received should be treated as taxable income. Everyone will be sent an end-of-year interest statement in the form of a 1099-INT as required by the IRS.

Can I convert this Bond into a tax deduction?
Yes, by simply notifying the temple, any or all of the principal amount or interest can be converted into a tax deduction. We will happily provide further information upon request.

Can I purchase a Bond even though the December 2021 deadline has passed?
Yes! Although the offering ended on December 31, 2021, there are still some Bond Coupons available.