Cooperative Funeral Fund

Cooperative Funeral Fund, Inc. has created a program for the funeral service industry to facilitate the creation, investment, tax compliance and payout of Preneed Funeral Trusts. The objective of this program is to provide maximum security of principal and to out-pace inflation (or the rising costs of funerals). Since the funds of an individual escrow account exist on average five years prior to being withdrawn, the investment philosophy is one of passive management. Financial instruments are bought and held for long duration, not actively traded. As Investment Advisor, Cooperative Funeral Fund, Inc., directs the investment of the Funds in accordance with the Funeral Service Contracts which restricts the portfolio to Government Securities, Corporate Bonds (A or Better rated), Money Market Funds, Certificates of Deposit and Insurance Annuity Products: "Fixed Income Investments". The ability to market the services of Cooperative Funeral Fund, Inc. lies not only in the appreciation of principal, but also in the other services the company offers: Cooperative Funeral Fund, Inc. prepares and files all forms required by the IRS. To ensure that all work is performed correctly, the Company has retained an independent accounting firm to oversee all aspects of the Company's tax work. Because we handle the tax work for irrevocable trust accounts, Cooperative Funeral Fund, Inc. is able to protect the funeral director and his client funds from attachment by the Department of Social Services, when the client has applied for financial assistance under Title 19 of the Social Security Act. Cooperative Funeral Fund, Inc. provides the Escrow Agents and the funeral directors with detailed monthly reports showing beginning balance, all interest allocation, expenses and fees, additional deposits, withdrawals, and ending balance for each individual escrow account, for each funeral director, and to the Escrow Agents for the fund in totality. Monthly statements and up-to-the-minute trust balances are also made available to our member funeral homes through www.CFFHomes.com. Periodically the escrow account is reviewed by an independent Certified Public Accountant. Upon request, a participant funeral director will receive a copy of that report. Cooperative Funeral Fund, Inc. charges an annual fee of 1.15% of the escrow account balance (this may vary depending on state laws). We do not charge a fee to set up a new trust, apply payments or pay claims or withdrawals. The company does not make any commissions from any investments purchased for the fund, nor do we receive any gratuities from any of the brokers or dealers used by the Escrow Agents.