SazzleRah wrote: ↑Fri Mar 19, 2021 3:59 pmNot necessarily... as another poster said they could take 100% of the proceeds saying they’re costs and salary.... it’s only The profit that needs to be split and, as the profit comes after everything else has been deducted, you could literally be left with a penny to pop back in to the cause.sondraK wrote: ↑Fri Mar 19, 2021 3:51 pmThat sounds better than it is here.At least something is going back into itSazzleRah wrote: ↑Fri Mar 19, 2021 1:57 pm
In the UK... 50% of your PROFIT has to go back in to the “cause” or towards mission statement... but you can pay yourself WHATEVER you like. So as an example if you turn over £1m and the staff salaries and “costs” come to £950k then you have £50k remaining... then £25k needs to go back into the cause and the further £25k can be taken out by shareholders (Phil and Alex!!) or kept as retained profit for future ventures. Basically, they could turnover £1m and only need to put £25k back into the cause.
*Not sure if it is the same in the USA? X
Name implies something done at cost, and is often misunderstood as such but it’s actually cleverly worded.
Exactly - they can still be a not for profit, with Phil paying himself a salary using 100% of the donations.