To avoid conflicts of interest, the Charitable Trust requires all portfolio income and realized capital gains be distributed to qualified publicly supported charitable organizations. Jim Cramer does not benefit personally from any portfolio gains or income; however, his personal funds are at risk for any losses related to the portfolio investments.
The Trust structure enables Jim to speak freely to his viewers and subscribers about his investment recommendations and importantly provides an excellent educational tool for subscribers as they can view his current investments, trading history, holding periods, gains and losses, weighting, and diversification. The portfolio of investments and related data is fully transparent to club subscribers.
Each year, accountants at Anchin, Block & Anchin review the trust transactions and confirm the number of charitable donations required by the terms of the trust.