Archewell has made loss of £500k

[Viviennemary]

I don't quite get how those foundations work. But can't be great that It's made a loss of more than half a million pounds. Article about it in the Daily Mail.

It attracts attention because they want it to attract attention, the video, but that brings scrutiny. The balance sheet reduced by roughly 2.5 million to deliver 1.2 million (which could still require further cost), it could have delivered more for the same costs. Remove the one off 10 million, which has hardly reduced there is little there. Realistically unless they fundraise or attract donors there is limited scope, which makes the telegraph report nonsense. If the aim of the foundation is purely for personal donation does it really require the staffing and overhead, there could still be a foundation for what is nothing more than a signposting organisation. Or is it really just a PR exercise and recipients are a side product. I don’t have a problem either way but if it is made into something it isn’t you have to ask why. If the video is not for donors or future fundraising what is it for, it didn’t do the best job at signposting.

Using reserves is normal for foundations. The charity commission in England and Wales do not look kindly to charities holding on to large reserves.
But they do need to spend the donations they already have.

it could have delivered more for the same costs

Could it? Please explain.

I don't understand the rest of your post tbh. There are 5 staff, including them and they take no salary. I see no problem with 3 paid staff.

Realistically unless they fundraise or attract donors there is limited scope,

Is that so? and so what? They have projects and charities they support and raise awareness for. If it ends up just their own money, no issue is there??

I don’t have a problem either way but if it is made into something it isn’t you have to ask why.

How do you mean it's made into something it isn't?

It all seems so complicated, if H&M want to give to charity (great) why don't they just do it like many of us do. Obviously they can do it on a different scale but I don't need to start a foundation to support charities I want to support. Is there a reason they can't just do that?

Surely most of us manage to give to charity without needing staff. My example was my monthly donation to a charity, took me about two minutes to set up the DD and it just runs every month. Buying some stuff for the food bank or toy appeal just involved me putting a few extra things in my trolley and after I paid putting them in the appropriate box.

Couldn't H&M write a cheque or set up a DD?

Because then you pay tax. This saves them money and makes them look good to the public. The gates foundation does great work but also saves one of the richest men in the world money. It's not going to change any time soon, tax breaks are the way government's incentive philanthropy.

But @Iwasafool you are not donating more than 10 years of your salary at once I assume?

You could say the same for the royal foundation, and indeed everything the royal family does charity-wise. They could do away with all staff related to their 'work' and charitable projects and instead write cheques. They don't. I don't want to assume, but I don't think you have the same wealth or goals as they do, and so you wouldn't need staff, no.

All of us can deduct our donations to reduce tax.

JK Rowling is another who has done similar, The Volant Trust is a grant making charity.

Of course gift aid and on self assessment. Def should do it.
Many others set up scholarships, Stormzy I believe funds 2 black pupils at a top uni every year.

What difference does that make? Writing the cheque might take micro seconds to add a few noughts.

Yes that seems a great way to do it. He is supporting them, it is the inbetween thing of setting up a foundation to send them the money I don't get. He could set up a trust so that the funding is there ongoing but what does the foundation bring to the table? If they aren't raising money why not just donate?

There is a limit an individual can 'give away' every year.

Whilst they're sitting in their mega mansion the only thought that will cross Megain and Hapless's minds is that it must be somebody else's fault that money has been lost.

I don't know what the royal foundation does. Is it the same, they put money in and signpost people on where they can donate?

No money has been lost.

Really? Who would restrict what I give away? Or are you thinking of tax if I die, that isn't actually a limit on what I can give away.

Its different in some ways, they have much more staff though and also hire contractors and outside agencies as well.

I replied already, but you aren't allowed to give more than a certain amount away each year. So wealthy people create foundations both so they can donate as much as they wish without tax implications, and so they can raise awareness for their causes.

The government. Its not very much in the Uk, I think from memory, £3,000? The US is more. I think it's a good thing that all of the money wealthy people wish to donate goes to the charities, rather than the government taking potentially 40%.

Are you thinking of Inheritance Tax Gift exemptions?

AFAIK, you can give away as much as you want. If you die within 7 years of making the gift, and you are wealthy, and you have given over the exemption limits, your estate will be subject to Inheritance Tax on the Gift, the value of which will be counted back into the estate as if you still had it, even though it has long been gifted.

I first learnt this from my extremely wealthy cousin, and then I heard Oprah talk about it! You can gift your kids and spouse whatever you wish though, while alive.

I think there are tax implications of donations. I know there are inheritance taxes, I am not up with exactly what all that is though. So your estate has to pay tac on gifts within a period before you die?/ I didn't;t know that!

Those essential private jets don’t pay for themselves you know?

I think I am wrong... it is giving to an individual outside your immediate family. Sorry! The limitations are regarding percentage of your earnings. I think