Why another donations to charity company?
We’ve seen a lot of organizations donate to charity. We also know the CEOs and executives have some hefty salaries for charitable organzations they manage. Maybe they are worth, maybe not. But that’s not how we work at Qualeto.
But Qualeto is an LLC, you cannot give 100% to charity, only 60% maximum
You are correct that by law, an LLC can only allocate 60% of its profits towards charitable contributions.
However, ther are some clarifications in order:
- For all of us at Qualeto LLC, this isnt our full time occupation, nor our primary source of income. The LLC is a pass-through tax structure
- Qualeto’s other clothing brands are for-profit.
This enables Trebol Blanco to donate 100% of its brand to charity as long as Trebol Blanco sales do not exceed 60% of the profits of Qualeto’s other brands AND the full-time occupational incomes of the Qualeto staff.
But what happens if sales explode?
I will be the happiest person on this planet because we are hopefully making a difference. but it is a valid question and concern. We would:
- Establish a Not-For-profit S Corporation to manage Trebol Blanco brand complete with a board of directors
- We will sell the Trebol Blanco brand to said corporation for the consideration of $1.
- We will donate that $1 to a charitable cause.
And then the Board will get salaries?
Not if we have any say about it.. and we will, we’ll be on the board.
if you have any other questions, please feel free to ask. And, as always, thank you for your support of what we do – in every brand.