AU2005100384A4 - Capital guaranteed lottery - Google Patents

Description

I

S&F Ref: 716805

AUSTRALIA

PATENTS ACT 1990 INNOVATION PATENT SPECIFICATION Name and Address of Applicant: Actual Inventor(s): Address for Service: Invention Title: Ian David Watson, of 18 Fairlight Crescent, Fairlight, New South Wales, 2094, Australia Ian David Watson Spruson Ferguson St Martins Tower Level 31 Market Street Sydney NSW 2000 (CCN 3710000177) Capital guaranteed lottery The following statement is a full description of this invention, including the best method of performing it known to me/us:- 5843c -1- CAPITAL GUARANTEED LOTTERY (-i Field of the Invention The present invention relates to lottery systems and, in particular, to a system by Swhich the capital investment of participants in the lottery is guaranteed and may be subsequently redeemed.

00 MBackground Modern world economies abound with various investment opportunities for 0individuals and organisations. These include simple forms such bank deposits where the deposited amount is guaranteed and the amount deposited earns a relatively small interest rate, typically of the range 3 to 5 percent per annum. Such accounts are featured by almost complete flexibility in deposit and withdrawal timings and thus are used to fulfil everyday cash flow needs. Where an individual or organisation has a larger sum of money that may be invested for a longer term, various institutions offer medium term deposits which have somewhat higher rates of interest, such as 4-6 pa., and may also be is capital guaranteed. Some investments, like equity funds, offer higher rates still (eg. 8often with a minimum or fixed term, but which are not capital guaranteed. Stocks and shares ordinarily provide almost unlimited flexibility for purchase and sale, but are not capital guaranteed, and sometimes offer not interest (dividend) return.

Each of the investment options described above have one common problem in that any interest earned, or dividends paid, will most often be subject to government taxation, as is the case in Australia. Further, with share portfolios, any capital growth is also subject to taxation, although a tax deduction may be made if there is a capital loss.

Effectively, governments generally see any form of investment where there is an expectation of income or growth as being subject to taxation.

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-2- O High levels of personal taxation are considered to be one reason why many individuals choose to engage in games of chance or other forms gambling. Such gaming includes lotteries having fixed ticket sales and fixed prizes, lotto and other draw-type Sgames where any number of players may participate and prizes fluctuate based upon the number and type of winners, to direct gambling such as occurs in casinos on gaming table 00 M and with slot machines, and also betting on sporting and other events. Throughout this specification, these forms of expenditure will collectively be referred to as "gambling".

In Australia, any winnings (or income) derived from gambling and the like is not considered "income" for the purposes of taxation, and is therefore exempt from taxation.

One exception to this rule relates to professional gamblers whose primary source of income is derived from games of chance and other gambling. This includes bookmakers.

The significant drawback of gambling is that the capital spent is generally forgone unless there is a win. This is particularly the case in lotteries and other games of chance which are popular amongst the masses and which operate at substantially longer odds, than other gambling such as casino games and sports betting. Nevertheless, any money input to such forms of gambling is generally forgone. For example, if an individual where to gamble, say $20 per week over a twenty year period, the total monies spent would be in excess of $20,000 all of which would be forgone unless some significant wins were obtained along the way. Anecdotal evidence suggests that typical players of lottery and other games of chance only receive a return of perhaps 1-3% of the capital spent unless a significant major prize was won along the way. However, it is the magnitude of some of those prizes that continues to provide the inducement for such expenditure. For example, in Australia it is common place for weekly draws having jackpot values of more than $10 million in total to be available.

[R:\LIBPP\716805]716805.doc:eaa -3- SSuch lotteries and gaming arrangements are typically run by government and are configured to return a significant and, relatively high proportion of the takings from the game as prizes in the game. A small portion of the funds received is used to cover costs Sof operation and another portion may be placed into consolidated government revenue.

Nevertheless, the likelihood of a major win eludes all but a small proportion of most 00 Mplayers and thus expenditure on such games is generally seen as a capital loss over many years.

It is the object of the present disclosure to substantially overcome, or at least ameliorate one or more problems with the above noted arrangements.

Summary In accordance with one aspect of the present disclosure there is provided a system for providing charitable income, the system comprising: a plurality of deposit accounts representing funds deposited by participants accumulated over time; a pool of funds corresponding to the accumulation of the deposit accounts; at least one capital guaranteed investment for the pool of funds and by which interest is periodically earned thereon; at least one prize periodically awarded to a corresponding one of the participants from a first portion of the earned interest; and a periodic distribution of funds from a second portion of the earned interest to at least one charitable beneficiary.

Preferably a third portion of the earned interest is used to cover costs associated with implementation of the system. Desirably oversight and award of prizes is handled by a trusted party distinct from that managing the system. The system is preferably configured such that prizes are awarded based upon proportion of a participant [R:\LIBPP\716805]716805.doc:eaa -4accumulated deposit to the pool of funds. A fourth portion of the earned interest may be retained by an organisation implementing said system.

A range of operation limitations may be imposed in order to ensure operating cost O minimization and maximization of capital guaranteed interest rates. Those limitations may include minium deposit and withdrawal amounts, and a minimum deposit term for 00 funds, particularly those in excess of a predetermined amount. A notice period may be Irequired for redemption in excess of a predetermined amount.

Also disclosed is a computer arrangement arranged for implementing the above noted system and computer program products for performing parts of the system. A method of providing charitable income is also disclosed.

Brief Description of the Drawings Fig. 1 is a schematic block diagram representation of a lottery system according to the present disclosure; Fig. 2 illustrates a simple example of the system of Fig. 1 with four participants; Fig. 3 is another example of the system of Fig. 1 with five participants; Fig. 4 is a pie chart representing the distribution of probabilities to the participants in the arrangement of Fig. 2; Fig. 5 represents a structure of a participant record in the system of Fig. 1; Fig. 6 illustrates one approach for distribution of prizes according to the example of Fig. 2; Fig. 7 represents distribution of prizes according to the arrangement of Fig. 6 but for the example of Fig. 3; and Fig. 8 is a schematic block diagram representation of a computer system upon which the arrangement of Fig. 1 may be implemented.

Detailed Description including Best Mode [R:\LIBPP\71I 6805]7 6805.doc:eaa O Fig. 1 shows a capital guaranteed lottery system 100 in which an organisational management unit 110 facilitates a capital guaranteed lottery using bond funds provided by various participants 102A, 102B 102N in a fashion that provides income to a number Sof beneficiaries 104. The system 100 operates using capital guaranteed investments offered by a third party 106.

00 M3 The participants 102A-100N, whose number may vary, each make bond Sdeposits 130 of funds into a corresponding participant account 112 managed by the organisation 110. Generally bond fund deposits are scaler multiples of a base amount such as $10, $100 or $1000. Each of the participants 102 may deposit monies over a period of time to thus accumulate funds within their respective account. Further, the participants 102 may withdraw 132 funds from their respective participant accounts 112, as such funds may be needed according to personal circumstances. The net effect of this arrangement is that the organisation 110 has on deposit a pool of funds 114 at any one time for all the current participants.

The organisation 110 invests 122 the pooled funds 114 with one or more third party capital guaranteed investments 106. The third party investments 106 may for example be bank deposits earning the aforementioned relatively low rates of interest, or term deposits earning the marginally higher interest, but however subject to statutory bank guarantee. However, because the pool of funds 114 is significant due to the number of participants, the interest rate able to be obtained from the third party investments 106 is generally higher than that which would be available to any one or more of the individual participants 102. The third party investments are desirably commercial operations such as banks and suitable other capital guaranteed investments, and such may include government offered (bond) investments, which operate on competitive commercial terms.

The third party investments 106 return interest 124 to the organisation 110.

[RA\LIBPP\7168051716805.doc:eaa -6- As a consequence of the participants 102 being able to withdraw funds from their corresponding account, funds must also be able to be withdrawn 128 from the third party guaranteed investments 106 so that such may be returned to the individual Sparticipants 102 via the organisation 110.

The net effect of the arrangement of Fig. 1 is that the interest 124 provides 00 Maccumulated returns 116 to the organisation 110. The returns 116 are used in three areas.

A first area is for covering operational and management costs 118 of the organisation 110.

Those costs may include payment of staff (including income taxes), costs for premises (eg. rent), payment for computing support and communications as required in order to manage the various participant accounts 112 and the investment of the pool of funds 114.

A second area is that, as with traditional lotteries, some of the returns 116 are used to provide funds for distribution 120 as prizes 126 to one or more "winning" participants 102. In the system 100, the distribution 120 of prizes is fundamentally based upon the relative proportion of deposits of an individual in the pool of funds 114 as being derived 140 from the participant accounts 112. This is explained later in this specification.

The third area of use of the returns 116 is to provide income to the various beneficiaries 104.

As will be appreciated, the system 100 will, in its most generic implementation be subject to income tax where the beneficiaries 104 are traditional income earners. In Australia, where the top marginal rate of personal income tax is 48%, this can effectively see income for the beneficiaries 104 halved which, for traditional investment arrangements, may effect their commercial viability.

However, in a preferred implementation of the system 100, the beneficiaries 104 are charitable organisations which, under Australian law for example, are exempt from [R:\LIBPP\716805]716805.doc: eaa -7tax upon their income. It follows therefore that using the system 100, individual participants 102 may effectively loan their capital savings to the organisation 110, which Sin turn invests those savings to provide a return which offers tax-free lottery prizes to the participants whilst at the same time offering a tax free income to one or more charitable beneficiaries, all of which is based upon interest earned through capital guaranteed 00 investment of the deposits of the participants.

SThe present inventor has assessed the commercial viability of this approach and considers that once the organisation 110 can offer lottery prizes of a guaranteed AU$1 million per month, such will attract a sufficient number of participants 102 to provide real and significant returns to various charitable beneficiaries. In this regard, the present inventor has determined that its pool of funds 114 was a minimum AU$300 million, and the third party capital guaranteed investments 106 offered a rate of 5% per annum, such would return interest to the value of AU$15 million per annum.

Such interest would therefore be used to offer twelve monthly AU$1 million in prizes to the participants 102 and would incur operational or management costs of approximately AU$1 million. The net effect of this is that the remaining AU$2 million may then be effectively donated to charitable beneficiaries 104.

Such an arrangement has many advantages. Firstly, for the participants 102, the monies they deposit with the organisation 110 are capital guaranteed and may be withdrawn as required, although within operational limitations. In a preferred implementation, a minium notice period (eg. 5 working days) for a withdrawal by any one participant can be required to ensure that marginal rates offered by the third parties 106 are not upset. That minimum notice period may resolve to a minimum deposit period for funds. For example, if a participant 102 has $10,000 which has been on deposit well beyond the minimum period, and then makes another deposit of $2,000, the minimum [R:\LIBPP\7168051716805.doc:caa -8period may only be applied to $2,000 of that participant's account. Alternatively, funds in a participant account 112 may have a fixed minimum term (eg. 6 months) for any one deposited amount, after which a further minimum withdrawal period (eg. 1 month) may Sapply. Numerous variations may be implemented according to the particular structure of the investments 106 and the quantum of the pool 114.

00 Further, since the monies deposited by the participants 102 can accumulate or vary, the probability of that participant winning a prize is directly related to the proportion of their individual deposit in the entire pool of funds 114. Also the quantum of prizes available is dependent upon the interest earned and hence the viability of the system 100 is always assured once the operational costs 118 are covered. Such then assures a steady stream of estimable income to the various beneficiaries 104. This substantially ameliorates one major problem that often plagues charitable organisations in Australia and in other jurisdictions who are traditionally reliant upon donations from individuals which may fluctuate widely depending upon varying circumstances.

Further, whilst in the above example refers to a single monthly prize of $1 million from a pool of funds of $300 million, the system 100 may operate to offer a range of prizes of varying amounts, much like any known lottery game.

To ensure impartiality, the prize funds and distribution 120 may be managed or scrutineered by a further party independent of the organisation 110.

A further attraction of the system 100, particularly for charitable beneficiaries 104, is that in respect of the support offered by the various participants 102, the system 100 operates regardless of whether or not the beneficiaries 104 are charitable organisations or commercial organisations. It is presumed however that participants 102 may be more likely to place funds on deposits with the organisation 110 knowing that the portion of the income from those deposited funds would be going to support a charitable [R:\LIBPP\716805]716805.doc: eaa -9organisation, rather than a commercial organisation. This significantly contrasts traditional commercial investments where the investment broker, via whom investments Sare made, will typically charge some percentage either of the deposit and/or of the return 0as a commission. Further, the level of distribution to the beneficiaries 104 is desirably set ,t 5 to be a fixed percentage of the interest 124 thereby, operating costs 118 aside, ensuring 00 Sprogressively larger prize pools and beneficiary distributions based upon an increase in Sthe pool of funds.

Figs. 2 to 7 illustrate one mechanism by which the lottery prize funds and distribution module 120 of the organisation 110 operates. As shown in the example of Fig. 2, four participants A, B, C, and D each have an account with a corresponding balance, the sum of which is a pool of funds valued at 161. Each of those account balances gives a proportional value corresponding to the level of deposits for that participant. The sum of the proportions is 1. It follows that, in the example of Fig. 2, any prizes to be delivered to the participants A D will be offered according to the probabilities corresponding to the proportion indicated. This is illustrated for example in Fig. 4 by means of a pie chart where it is seen that participant D occupies approximately 40 of the chart whereas each of the other participants A C occupy the remainder. It follows that the chance of any one the participants A D "winning" any prize is equivalent to the pie chart of Fig. 4 being seen as a dart board and a dart being thrown at the board and landing in any one of the four sectors. If the dart lands in that sector, then the corresponding participant is the "winner". The pie chart of Fig. 4 may be linearised as shown in Fig. 6 where each of the participants is seen to have a relative position on the linear chart based upon the proportion values and the pool of funds. It follows therefore that for a single prize distribution in the arrangement of Figs. 2 and 6, a random number generator may be used to output a single number greater than zero and [R:LIBPP\716805]716805.doc:eaa less than or equal to one. That single number may be used to identify a particular one of the participants whose normalized account balance value effectively corresponds to the generated random number. For example, if the generated random number was 0.8, the Sparticipant D would be awarded the prize, whereas if the generated number was 0.25, participant B would be awarded the prize. As readily seen from Fig. 6, the chance of any 00 Mone participant winning the prize is directly proportional to their level of deposit in the fund. With this approach, as seen in Fig. 1, details of the participant accounts 112 may be Sused to provide inputs 140 to the prize fund determination and distribution module 120.

The arrangement of Fig. 2 may represent account balances for a particular calendar month, for example on one day of that month, of the system 100. In a following calendar month the arrangement of Fig. 3 may represent the state of the system 100 where an additional participant E has joined the system and the overall pool of funds has risen in value from 161 to 201. It will be seen in this particular instance, the relative proportion of each of the participants A to D has dropped. Fig. 7 shows a corresponding linearized chart representing the proportions for the month shown in Fig. 3. It is observed that some of the participants A to D have altered their account balance by making further deposits, the net effect of which is that all proportions used for the lottery prize draw in the month of Fig. 3 are different from those of the month of Fig. 2.

Fig. 5 shows an arrangement of an account for an individual participant as such may be used in the system 100. Each participant is afforded an account number by which deposits and withdrawals may be made. An account balance is used to maintain track of those funds currently on deposit for the particular participant. At any one time when a prize is to be awarded, the account balance of the participant is used in comparison with the total pool of funds to determine the proportion of the pool associated with that participant. This is equivalent to the proportions shown in each of Figs. 2 and 3. The [R:\LIBPPVI168OS]7168O5.docaa -11- O record of Fig. 5 also maintains for each proportional value, the relative position of the participant in relation to other participants. For example, with reference to the participant B the relative position in Fig. 6 is between 0.200 and 0.454. For participant B Sin the month of corresponding to Figs. 3 and 7, the relative position is between 0.185 and 0.388.

00 It is noted that no participant may have a proportional value of 0 as such means that they have no chance of winning any prize. By definition, a participant must have an account balance on deposit in order to have an opportunity to win.

The system 100 may be implemented with the aid of a general-purpose computer system 800, such as that shown in Fig. 8 wherein the processes of Figs. 1 to 7 may be implemented as software, such as an application program executing within the computer system 800. In particular, the operation of account management for the participants 102, management of investments with the third parties 106 and determination and distribution of prizes 126, costs 118 and income to beneficiaries 104 are effected by instructions in the software that are carried out by the computer. The instructions may be formed as one or more code modules, each for performing one or more particular tasks. The software may also be divided into two separate parts, in which a first part performs the account management and funds distribution and a second part manages a user interface between the first part and the user of the software. The software may be stored in a computer readable medium, including the storage devices described below, for example. The software is loaded into the computer from the computer readable medium, and then executed by the computer. A computer readable medium having such software or computer program recorded on it is a computer program product. The use of the computer program product in the computer preferably effects an advantageous apparatus for a capital guaranteed lottery.

[R:\LIBPP\716805716805.doc:eaa -12- The computer system 800 is formed by a computer module 801, input devices such as a keyboard 802 and mouse 803, output devices including a printer 815, a display device 814 and loudspeakers 817. A Modulator-Demodulator (Modem) transceiver Sdevice 816 is used by the computer module 801 for communicating to and from a communications network 820, for example connectable via a telephone line 821 or other 00 Sfunctional medium. The modem 816 can be used to obtain access to the Internet, and Iother network systems, such as a Local Area Network (LAN) or a Wide Area Network (WAN), and may be incorporated into the computer module801 in some implementations.

The computer module 801 typically includes at least one processor unit 805, and a memory unit 806, for example formed from semiconductor random access memory (RAM) and read only memory (ROM). The module 801 also includes an number of input/output (1O0) interfaces including an audio-video interface 807 that couples to the video display 814 and loudspeakers 817, an I/O interface 813 for the keyboard 802 and mouse 803 and optionally a joystick (not illustrated), and an interface 808 for the modem816 and printer815. In some implementations, the modem8116 may be incorporated within the computer module 801, for example within the interface 808. A storage device 809 is provided and typically includes a hard disk drive 810 and a floppy disk drive 811. A magnetic tape drive (not illustrated) may also be used. A CD-ROM drive 812 is typically provided as a non-volatile source of data. The components 805 to 813 of the computer module 801, typically communicate via an interconnected bus 804 and in a manner which results in a conventional mode of operation of the computer system 800 known to those in the relevant art. Examples of computers on which the described arrangements can be practised include IBM-PC's and compatibles, Sun Sparcstations or alike computer systems evolved therefrom.

[R:\LIBPP\716805]716805.doc:caa -13- Typically, the application program is resident on the hard disk drive 810 and read and controlled in its execution by the processor 805. Intermediate storage of the program and any data fetched from the network 820 may be accomplished using the semiconductor Smemory 806, possibly in concert with the hard disk drive 810. In some instances, the application program may be supplied to the user encoded on a CD-ROM or floppy disk 00 and read via the corresponding drive 812 or 811, or alternatively may be read by the user Sfrom the network 820 via the modem device 816. Still further, the software can also be Sloaded into the computer system 800 from other computer readable media. The term "computer readable medium" as used herein refers to any storage or transmission medium that participates in providing instructions and/or data to the computer system 800 for execution and/or processing. Examples of storage media include floppy disks, magnetic tape, CD-ROM, a hard disk drive, a ROM or integrated circuit, a magneto-optical disk, or a computer readable card such as a PCMCIA card and the like, whether or not such devices are internal or external of the computer module 801. Examples of transmission media include radio or infra-red transmission channels as well as a network connection to another computer or networked device, and the Internet or Intranets including e-mail transmissions and information recorded on Websites and the like.

With the computer system 800 coupled to the Internet operating as the network 820, individual participants 102 may electronically deposit bond funds into their respective accounts 112 via electronic funds transfer from a private bank account or through credit card debit, much like a traditional Internet shopping transaction. Further, participant accounts 112 may be available for on-line balance inspection, withdrawal availability enquiries, and also for the redemption of funds. Where a trusted third party manages the prize funds determination and distribution 120, such may be implemented by a separate code module running on a further computer accessible via the network 820.

[R:\LIBPP\716805]716805.doc:eaa -14- Implementation of the system 100 may be made using a primary investment institution as having an equitable interest in the organisation 110 to thereby provide the appropriate guarantees to the participants 102 and, where appropriate, to provide a conduit for investment with an array of third party capital guaranteed investments 106.

Also, in a preferred implementation whee the system 100 operates to support charitable beneficiaries 104, all management records including interest earnings 124, costs 118, prizes 126 and distributions to the beneficiaries 104 may be readily published via a World Wide Web site, which may further represent a portal for participants 102 for deposits 130 and withdrawals 132. The prizes 126 typically derive from a prize pool l0 (eg. $1,055,000) and may include a periodic major prize (eg. $1 million) and a range of smaller, consolation prizes (eg. 5x$10,000 and 5x$1000). An alternative is, rather than paying a single major prize (eg. $1 million) and a number of relatively small prizes, a prize structure may involve a reasonable number of "modest" prizes (eg. 21 x $50,000 prizes). This may be more attractive to some participants. The manner of distributing the prize pool may vary depending upon the prize structure and the funds available at the time. Jackpot and other special prizes may also be awarded as desired according to published rules. For example and where appropriate, a special prize of, say, $2 million may be awarded annually to amongst those participants 102 who meet some pre-advised criteria, such as minimum funds on deposit for a minimum period (eg. at least $10,000 over a 12 month period).

Further, whilst the described arrangement, after covering operating costs and prizes, distributes all remaining funds to the beneficiaries 104, an alternative implementation may retain some amount of "profit" for distribution to owners of the organisation 110 as compensation for the substantial liability they incur in being an intermediary in the investment of the funds of the participants 102. Such monies may alternatively be put [R:\LBPP\716805]716805.doc:eaa back into the organisation 110 so that the system 100 may be expanded. Such "retained" income would be subject to income tax in most jurisdictions. It is envisaged by the present inventor, that during a growth period of the system 100, for example up to a stage Sthe pool 114 permits where a monthly $1 million prize to be offered, after the prizes 126 and costs 118 are subtracted, the balance could be split 50:50 between the 00 M beneficiaries 104 and the organisation 110, so as to fund the growth whilst maintaining an Iaccountable stream of charitable donations.

Industrial Applicability It is apparent from the above that the system described above is applicable to the financial and gambling industries.

One example of a similar system is "Premium Bonds" offered by Her Majesty's Treasury (www.nationalsavings.co.uk). Premium Bonds were introduced to provide an incentive for individuals to save, whilst at the same time offering consideration in the form of substantial prizes. Minimum bond purchases of £50 were required, and a maximum holding was set to £30,000. Redemption rates were set within operational limitations. As understood, with the exception of operating costs, the entirety of interest earned was returned as prizes, and all deposits were guaranteed by the British Government.

The presently described arrangements offer a number of advantages over premium Bonds. For example, the system 100 may use commercial third party investments 106 by which interest rates may be negotiated according to deposit levels, thereby permitting maximum return within a capital guaranteed framework. Also, whilst the prize pool will be reduced in comparison, substantial prizes may nevertheless be offered whilst maintaining a significant tax-free income stream to charitable institutions, thereby supporting a communal good whilst maintaining national wealth, and thus better [R:\LIBPP\71680517 1 6805.doc:eaa -16- Spromoting public acceptance. Such arguably may reduce the dependence of charities upon government support. Deposit rates may be varied to accommodate incremental Saccumulation by varying amounts and no maximum holding need be set. Indeed, continual accumulation of funds on deposit is encouraged with the present system 100, to s provide a greater return for the charities, whilst increasing ones own chance of winning a 00 prize. The system 100 may further be implemented by an individual, body corporate or trust organisation, thus relieving government of day-to-day management as in the British case.

Further, in the British case, depositors are individual persons. In the system 100, the participants may be any person such as a natural person, a body corporate, a trust or a partnership, for example. Such for example may permit monies bequeathed to charities to be invested for the future benefit of charities in the system 100. This may be achieved by having any prizes awarded to the bequeathed account 112 to be deposited into that account, thereby perpetuating the "investment" for the return to the beneficiaries 104. In such a case, the organisation 110 will effectively hold the bequeathed account 112 in trust for the beneficiaries 104.

The foregoing describes only some embodiments of the present invention/innovation, and modifications and/or changes can be made thereto without departing from the scope and spirit of the disclosure, the embodiments being illustrative and not restrictive.

(Australia Only) In the context of this specification, the word "comprising" means "including principally but not necessarily solely" or "having" or "including", and not "consisting only of'. Variations of the word "comprising", such as "comprise" and "comprises" have correspondingly varied meanings.

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Claims (5)

1. A system for providing charitable income, said system comprising: Sa plurality of deposit accounts representing funds deposited by participants accumulated over time; 00oO Sa pool of funds corresponding to the accumulation of the deposit accounts; Sat least one capital guaranteed investment for the pool of funds and by which Sinterest is periodically earned thereon; at least one prize periodically awarded to a corresponding one of the participants from a first portion of the earned interest; and a periodic distribution of funds from a second portion of the earned interest to at least one charitable beneficiary.

2. A system according to claim 1 further comprising: using a third portion of the earned interest to cover costs associated with implementation of said system; and wherein oversight and award of prizes is handled by a trusted party distinct from that managing said system.

3. A system according to claim 1 or 2 wherein said at least one prize is awarded based upon proportion of a participant accumulated deposit to the pool of funds

4. As system according to claim 1, 2 or 3 wherein a fourth portion of the earned interest is retained by an organisation implementing said system. [R:\LIBPP\716805]716805.doc:e aa -18-

5. A system for providing an income stream to at least one charitable beneficiary, said system being substantially as described herein with reference to any one of the embodiments as that embodiment is illustrated in the drawings. DATED this NINTH Day of MAY 2005 00 IAN DAVID WATSON Patent Attorneys for the Applicant 0 SPRUSON&FERGUSON [R:\LIBPP\716805]716805.doc: aa