This is a non-profit whose goal is simple:
To provide free nutritional supplements and food to those who can't afford it.
In addition, the Foundation will provide unbiased nutritional information, as well as fund medical research and do advocacy.
www.nutrafoundation.com
The website has good, basic information for now, and will be fully operational by May 2011.
AND -- this non-profit will be profitable !!! In other words, it will be run like a for-profit with two differences: 1) all profits will stay within the Foundation, and 2) a non-profit pays very little taxes, if any.
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2 comments:
Prof mark:
This is an interesting take on running a venture. Set it up legally as a non-profit, ensure that it is profitable, but ensure that all noted profits remain in the venture. This is obviously a strategy to grow it with equity (retained earnings) capital, yet without having to pay tax.
In another sense, you could almost state that the benefits of this venture, rather than accruing to the stakeholders (owners as well as users of the products) as well as society (via taxes), accrue solely to stakeholders (owners as well as users of the products). The only thing is that it cannot declare dividends; any growth must be delivered in better products to extant recipients and/or extend to new beneficiaries. It is just that it is not in dollar terms.
It is an interesting model. I hope that it works well for all concerned.
Troy.
Troy -- and others
That's not exactly how it works. ALL non-profits can make a profit -- as much as they want. The best ones make lots of profits. Being a non-profit is not a way out of paying taxes. The charter must be to truly help others. For example, a restaurant is not going to be a non-profit, despite feeding people.
A non-profit basically means 1) all activities must be in the area of the non-profit's charter, 2) pay little or no taxes, 3) must have non-profit status (ie 501c3)
The non-profit can pay expenses, salaries, benefits, etc. etc.
The trend these days is for non-profits to indeed earn money and profits, and not rely solely on donations. Most non-profit college and masters' programs focus heavily on running the non-profit like a for-profit business.
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