Harry and Meghan doing alright in the US, continuing their universal service

[notanotheroneagain]

Have heard a few comments from panellists and commenters thinking that Harry somehow wants to come back to the UK?

I highly doubt this. I think they are doing more than ok in the US.

A pity a positive thread has been deleted regarding the podcasts, maybe the positive conversation can continue here?

In particularly I wanted to highlight the announcement that they will be recipients for the Robert J Kennedy Human Rights award.

“When The Duke and Duchess accepted our award laureate invitation back in March, we were thrilled. The couple has always stood out for their willingness to speak up and change the narrative on racial justice and mental health around the world,” Kerry Kennedy, president of Robert F. Kennedy Human Rights, and Robert F. Kennedy's daughter, said in a statement shared today. “They embody the type of moral courage that my father once called the ‘one essential, vital quality for those who seek to change a world that yields most painfully to change.’”

Can I ask if you are only interested in this because of H&M having a charity registered in Delaware or if there is a reason beyond that?

There are different kinds of non-profits but all governed by the IRS first and foremost. Registering in a specific state has tax benefits with a for profit business but doesn't change their federal treatment.

www.councilofnonprofits.org/tools-resources/public-disclosure-requirements-nonprofits#:~:text=Tax%2Dexempt%20nonprofits%20are%20required,their%20application%20for%20tax%2Dexemption.

By the way, almost every company I’ve ever worked in the past 25 years for was registered in Delaware. Only the one very small one was not It’s not considered shady here.

It’s not particularly about privacy, in fact, I’ve never heard anything about that. Usually it’s about state taxes and ease of doing business.

www.delawareinc.com/before-forming-your-company/benefits-of-incorporating-in-delaware

Also, nearly ever state regulates non-profits fundraising in their state who raise over a particular threshold.

So where you register is not the only consideration. In my state, if you fund raise here in any form, you must also file specific financials. That doesn’t mean that you, uninterested member of the public gets to rifle through the filing cabinets, but it does mean they are being held accountable.

This is a good tool for checking out charities. Since Archewell is a 501(c)(3) in good standing. I don’t think they are registered in Delaware based on this. They have no rating because they aren’t that big.
www.charitynavigator.org/ein/852213963

Hanna the website itself suggests it is particularly about privacy.
It boasts that privacy is one of the particular perks of incorporating in Delaware.

"Since Archewell is a 501(c)(3) in good standing. I don’t think they are registered in Delaware based on this."

You might not think so Hanna but they are. Companies can be based in one state but registered in another.

I'm turning into your unpaid, unofficial fact-checker, and right now there's no rest for the wicked

Agreed, I checked elsewhere and see that Wikipedia says that’s where they are registered. Good enough for me.

Anyway, it’s quite common. I sat on the board of a small local charity with a national affiliation and international presence and our branch was also registered in DE.

I guess but not in my experience nor have I ever heard that provided as the reason.

It wouldn’t make sense for that to be a reason for so many public companies, with a massive burden of publishing extensive financials, to register there.

www.americanbar.org/groups/business_law/publications/blt/2016/11/01_leitner/

The reasons given here were always my understanding. Again, being registered in a particular state doesn’t change your federal responsibilities nor give you license to fund raise in every state without registering to do so.

Well, I’m basic so I liked it. 😂

I guess I’m basic too because I loved it 🤣

I’m also proud of myself knowing what “basic” means at my advanced age. 🤣

Can I ask if you are only interested in this because of H&M having a charity registered in Delaware or if there is a reason beyond that?

I don't know why it matters but I heard about it because of Archewell. But it got me interested in how states operate to attract business, presumably because it's a state earner. It's not just Delaware, there are other states which are trying to get attract business to register there. Florida took my eye as well. There are lots of positives, not least how easy Delaware makes it.

I appreciate that you think it's just what people do but no one registers across the country if there's no benefit to them! You'd register in your local town. People register their company there for different reasons, I guess, and privacy is one.

I heard for non-profits, in Delaware up to 95% of the charity's money can be spent on expenses, whereas in California only 60% can be spent on expenses. In the UK we don't have set limits - it depends on the charity - but on average it's about 25%. The charity commission says of a charity were spending over half it's income on admin costs, it would need a very good reason. I believe very few charities are audited nationally which leaves the system open to abuse. Further, it seems in Delaware that the oversight of charities is done by the state attorney general but is inadequate and entirely complaint driven.

I'm not sure by response of filing specific financials means you have to make it public. In the UK, all charities must write a trustees report, including financials, which is available to the public on request. Having worked for a charity previously, I believe that's only right to keep public confidence.

To return to Archewell, I guess we'll have to wait for the next form 990 submission. Although I'm still uncertain if the state or the non profit makes it public.

Marsha can I ask how you know this?

I appreciate that you think it's just what people do but no one registers across the country if there's no benefit to them! You'd register in your local town. People register their company there for different reasons, I guess, and privacy is one

Just because you haven't heard of that being a reason doesn't make it true.

Privacy has always been a main reason why companies registered in Delaware. That's a well-known fact and I'm surprised someone with your claimed expertise and experience is claiming otherwise.

Thanks for the insight on how Delaware treated charities.
On the corporate side, Delaware has huge advantages on confidentiality, ultimate ownership and reporting, so that a huge number of PE funds and hedge funds wanting to orating in the US incorporate themselves there. So not surprising they are using Delaware, as advised by their tax and corporate advisors.

A great part of the "ease of doing business" with Delaware is that a lot can remain confidential

We will never get the chance to know how much in paid editorial they spend a year 😅 but, you can spend up to 95% of expenses 💪

Delaware is the place where the majority of US entities are registered for a number of reasons - it in in effect an on-shore tax haven. There is no corporation tax payable in the state, the owners of the entity don’t need to be publicly disclosed, Not for profits have a very low donation threshold, and also the Delaware law courts don’t use jury trials for corporate trials - a massive advantage when managing legal risks.

Delaware has essentially positioned itself as the Luxembourg of the USA - loads of EU enterprises are incorporated in Luxembourg to take advantage of similar benefits. People get sniffy about it (Amazon’s European HQ are there for example, meaning they didn’t pay tax in other EU countries) but it is perfectly legal.

People get sniffy about it (...) but it is perfectly legal.

I don't think anyone thinks that they've done anything illegal. Other states offer similar because it's a good earner. It just seems strange that people think that people would register their business a couple of thousand miles away from where they live and not think they'd do it because there are a variety advantages for them.

It may seem strange to someone who does not live in the US but not so much if you live here and notice it constantly.

Of course there are advantages, though. Who has said otherwise?

But I get the impression you think it’s underhanded and my only point is there is nothing suspicious about it.

Anyone anywhere who has had anything to do with the capital markets know that people register in Delaware for 3 (2 related) reasons: low taxes, privacy and low reporting/light touch regulation. The capital markets in the whole don’t care so much about privacy. But you can bet 95% of the income of any Delaware registered charitable organisation that they do.

Separately, gotta point out the irony of you thinking your truth is THE truth because of who you’re married to, on a Harry and Meghan thread 🤣

I know because of having worked for and with at a bunch of US companies registered in Delaware. Also because I was on the board of a charity registered there. I checked my understanding with someone practicing law because I’m not a lawyer.

And you “know” because you live in UK and have internet access? And you care because, why?

Of course Harry and Meghan chose to register in Delaware for tax and privacy reasons 🙄. Why on earth wouldn’t they? They are absolutely not the only ones, and there’s nothing illegal about it. And as non-working members of the RF, they’re not required to maintain moral probity as well as legal probity.

The added hypocrisy (which, incidentally, is but a drop in the ocean compared to William and Charles and all who went before and will come after, with their Duchies and totally
opaque personal and ‘business’ arrangements) is that they preach moral superiority but don’t practice it. M&H less so and less sophisticatedly so than the RF but they’re far more sanctimonious about themselves. In reality they’re just in with the wealthy hoi polloi in the US, literally nothing separating them from any wealthy family that sets up a charity in the name of a loved family member except they have a higher profile. There’s so much hot air and smoke and mirrors with these two, they’re absolutely like the wizard of oz. Having a family ‘foundation’ is a minimum entry requirement for certain social scenes and Archewell is really donkey feed compared to some foundations out there which are immensely well funded, fly totally under the radar and actually do stuff (or not, sometimes). Incidentally, allll these people are fiscally Republican, even the bluest of die-hard Democrats. To listen to them you’d think H&M are at the AOC end of Dem politics. They’re so not. They like to play socially liberal but by their actions they’re Republican to the core.