In the first blog of this series – What is Social Secharity? – we introduced the innovative concept of Social Secharity: a purpose-driven financial strategy rooted in Section 664 of the Internal Revenue Code. The Theory offers individuals a voluntary, tax-advantaged path to lifetime income, community impact, and long-term legacy. Now we go one step further and unpack the simple but powerful formula at its core:

664 = E²

This equation may look like math, but it represents something much deeper: a new model for how Americans can secure their future while contributing to the greater good.

What Does 664 = E² Mean?

The formula was developed by Professor Lesley Winston, founder and Chairman of the Endow America Network Foundation (EANF), a national community foundation 501(c)(3) under the Internal Revenue Code of the United States. According to Professor Les, this equation reflects a dual-purpose financial strategy based on existing law.

• 664 refers to Section 664 of the Internal Revenue Code, passed through the Tax Reform Act of 1969, which created legal structures like Charitable Remainder Trusts (CRTs). These tools allow individuals to convert appreciated assets into lifetime income while deferring taxes and ultimately supporting charitable causes.

• E² stands for Two Endowments: the first endowment is for the individual, and the second is for society.

As Professor Les explains on the Endowment Vision Series at the Discovery 664 Academy Video Podcast on Spotify:

“You’re creating income and wealth for yourself, but you’re also
funding what you care about. That’s where the power is.”

This is what makes Social Secharity different from government-controlled systems: it produces wealth and purpose at the same time.

Why Social Secharity not Social Security?

According to Professor Winston, America is facing a growing financial crisis. The U.S. national debt now exceeds $35.8 trillion, and recent reports from the Congressional Budget Office and Social Security Administration confirm that Social Security will deplete its reserves by 2034. The system is simply not designed for modern retirement needs.

“Social Security was a good idea in 1934,” Winston says.
“But it’s outdated now. You pay in your whole life, and when you die, it all disappears.”
(Professor Les on the Endowment Vision Series 2.0 at the Discovery 664 Academy Podcast)

Social Secharity offers a different path:

• It is voluntary (not mandatory)

• It is self-directed (not government-administered)

• It is tax-advantage (with tax saving benefits)

• And most importantly,it leaves a legacy (not a void)

Instead of relying on a shrinking safety net, individuals can use Section 664 to create their own income stream during life, and endow the causes they care about after.

Replacing Entitlement with Empowerment

In his podcast, Professor Winston outlines three core reasons why Social Secharity is gaining momentum:

1. 1. Tax Efficiency

Social Secharity strategies reduce income taxes, defer capital gains taxes, and minimize estate taxes.

“Imagine selling stocks or real estate without triggering massive tax bills.
That’s what Charitable Remainder Trusts, Pooled Income Funds, and Charitable Gift Annuities
allow you to do,” Winston explains.

1. 1. Income Security

Unlike Social Security, which offers limited and inflexible payouts, Social Secharity enables individuals to design their own income streams, tailored to their goals, timelines, and values.

1. 1. Generational Legacy

Social Security ends when you die. Social Secharity continues. The remaining funds in your trust go to charities, nonprofits, or educational institutions of your choice, sustaining your values and building community wealth.

An Equation for the Future

664 = E² isn’t just a theory. It’s a functioning framework already available in the tax code. But to see its full potential, more Americans need to learn how to apply it. That’s the purpose of the 664 Ambassador Course: offered through Discovery 664 Academy.

The course is designed to teach individuals how to use these legal strategies ethically, efficiently, and for the betterment of themselves and their communities.

Social Secharity doesn’t just challenge the status quo, it replaces it with something enduring and empowering.

So, the real question is:

Would you rather pay into a system you can’t control, or build an endowment that empowers your future and leaves a legacy?

In the next blog in this series about the Theory of Social Secharity, we’ll explore

Why 664 Is the Future of Financial Education