giving all my company’s profits away! (Preferably without starving)

[Chris Gleo]

<div class="bbWrapper">hey everyone! <br /> <br /> I’m thinking about starting a c Corp that donates 100% of profits to a charitable foundation. I want to collect a reasonable salary and donate the remainder. My products competitive edge is its charitable spirit, so I want to advertise “100% of profits go to charity” <br /> Here are my questions...<br /> 1. It is legal to record a CEO salary separate from corporate profits right? <br /> 2. Is there a way to avoid double taxation with this type of structure?<br /> 3. I can’t find a charity/foundation that meets my standards and operates within my company’s niche. So, down the road, can I have a close friend or family member create a foundation that my company will finance? <br /> <br /> Basically, i need to keep food on the table, but I have a cause I genuinely want to help with, and I have a great product that just needs a little extra marketing edge... any advise that could help me go from here would be absolutely amazing!<br /> <br /> Sorry if I’m missing something obvious or asking dumb questions... I technically haven’t finished business school yet <img src="/community/imgs/emoticons/em-tongue.png" class="smilie" loading="lazy" alt=":P" title="Stick Out Tongue :P" data-shortname=":P" /></div>

 

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[Kak]

<div class="bbWrapper">As far as a structure is concerned, you pretty much fit the description of a nonprofit entity. I&#039;d look into 501c3s. Nonprofits can give to other nonprofits. You can be the CEO of the nonprofit. Avoiding double taxation in a corporation is as easy as not showing a profit. As long as your deductible giving and your salary add up to more than the corporation took in, the corp made nothing and you&#039;re only taxed on an income level. Though you&#039;ll have to file at corp and individual levels. Needless to say though. Your corporate structure should be a nonprofit.<br /> <br /> To answer your questions quickly:<br /> 1. Yes<br /> 2. Yes<br /> 3. Yes</div>

 

[biophase]

<div class="bbWrapper"><blockquote data-attributes="member: 56113" data-quote="Chris Gleo" data-source="post: 689741" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=689741" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-689741">Chris Gleo said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> hey everyone!<br /> <br /> I’m thinking about starting a c Corp that donates 100% of profits to a charitable foundation. I want to collect a reasonable salary and donate the remainder. My products competitive edge is its charitable spirit, so I want to advertise “100% of profits go to charity”<br /> Here are my questions...<br /> 1. It is legal to record a CEO salary separate from corporate profits right?<br /> 2. Is there a way to avoid double taxation with this type of structure?<br /> 3. I can’t find a charity/foundation that meets my standards and operates within my company’s niche. So, down the road, can I have a close friend or family member create a foundation that my company will finance?<br /> <br /> Basically, i need to keep food on the table, but I have a cause I genuinely want to help with, and I have a great product that just needs a little extra marketing edge... any advise that could help me go from here would be absolutely amazing!<br /> <br /> Sorry if I’m missing something obvious or asking dumb questions... I technically haven’t finished business school yet <img src="/community/imgs/emoticons/em-tongue.png" class="smilie" loading="lazy" alt=":p" title="Stick Out Tongue :p" data-shortname=":p" /> </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> I currently have a company that does something similar to this. My main concerns would be, as CEO you can pay yourself whatever you want and make the company have $0 profit and donate nothing. I&#039;ve seen many companies say 100% profits go to charity but nobody believes it. Even less people will believe you if 100% profits go to your own foundation.<br /> <br /> Does your product tie in with the charity? How can you even start this company if you don&#039;t have a charity in mind to donate your profits too? Where will your profits go if you make money next week?</div>

 

[SquatchMan]

<div class="bbWrapper">Why do you want to be a C-Corp?<br /> <br /> Anyway, 100% of profits going to charity doesn&#039;t sound like a good marketing angle, but maybe I&#039;m too smart to fall for that trick.<br /> <br /> A 1-for-1 type system (like Tom&#039;s) sounds better in my opinion.</div>

 

[Chris Gleo]

<div class="bbWrapper">I would disclose my salary and maybe other expenses... possibly apply for a b Corp certification. I work in the field I want to support (wildlife rehabilitation) and I already have tens of thousands of social media followers that interact with my posts about wildlife. I’m just tired of the companies that pledge 10% to the cause and then keep 90% to fund their lavish lifestyles... I just want to create something that puts the cause first. Your points are very well taken though. I’ll have to brainstorm a few ideas to make sure the consumers trust my motives...</div>

 

[Chris Gleo]

<div class="bbWrapper"><blockquote data-attributes="member: 44734" data-quote="SquatchMan" data-source="post: 689748" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=689748" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-689748">SquatchMan said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> Why do you want to be a C-Corp?<br /> <br /> Anyway, 100% of profits going to charity doesn&#039;t sound like a good marketing angle, but maybe I&#039;m too smart to fall for that trick.<br /> <br /> A 1-for-1 type system (like Tom&#039;s) sounds better in my opinion. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> <br /> I thought a c Corp was the only way to separate CEO salary from corporate profits? I’m thinking I may have to just pledge 90% to charity and keep 10% as my cut though... the “1 for 1” model doesn’t really fit with my product or cause, but I may be able to do something along those lines. I’m actually not trying to “trick” anyone haha. There’s a similar company that pledges 10% and acts like they actually care about the cause but it’s all a marketing stunt to sell more products... I want to create a company that actually cares about the cause first.</div>

 

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[Late Bloomer]

<div class="bbWrapper">I recommend you look up Derek Sivers&#039;s story. He figured he could give away more if he first had a company that made a lot of profits, and then he sold that company for a lot of money. He then gave away all of that except for just enough to live on, including some travel. I think he&#039;d be a great mentor for you if asked him nicely. <a href="https://sivers.org/" target="_blank" class="link link--external" rel="noopener">Derek Sivers</a></div>