1. What do charities make money from?
It's only a small part for charities to extract a certain percentage of the expenses from the fund-raising income as daily expenses and employees' salaries. In fact, charitable organizations generally have great financial strength, so they can put these abundant funds into the capital market, such as stocks, securities, futures, real estate and other industries, so as to earn profits. Of course, in principle, the money earned should also be used for charity. One of the most famous is the Bill and Melinda Gates Foundation!
Although the Gates Foundation is a charity, it is also a very profitable foundation. Bill Gates is a person who advocates risk diversification and balanced investment. The Gates Fund mainly invests in some enterprises in the old economy in the United States, and is also known for its "diversity" and "conservatism" in investment. Its usual method is to "absorb while the price is low", that is, to buy some stocks of enterprises whose prices have fallen to a very low level and wait for the stock price to rise to make a profit. Its successively invested companies include Newport News Shipbuilding Company, Alaska Gas Group Company, Sunisal Steel Industry Company, W. Tortel Power Company, Ekos Pharmaceutical Company, Seattle Gene Company, etc.
Among the projects invested by the Gates Foundation, more than $6.43 billion is invested in short-term investment projects, including US government bonds, high-grade commercial paper and short-term discounted bonds. $21 billion is invested in bonds, cash and other projects, such as domestic and international mutual fund investment, high-yield corporate securities and international corporate and government securities. The amount invested in stocks accounted for $5.24 billion, including American and international stocks, as well as private equity investment funds. Among them, 5 billion dollars of safe loan products were deducted.
According to Forbes, according to its annual report, in 23, the foundation received a return of $3.9 billion with a capital of $26.8 billion. This total is more than three times the $1.2 billion from its property transfer. In 21, the average return on investment of Gates Fund was about 18%. Among them, more than half of them come from the benefits of Microsoft capital donated by Gates. Its stock operating cost is less than 1 cent per share. Even when the dividend of the Standard & Poor's 5 stock index drops by 12%, the annual return rate of the Gates Fund can reach 7.8%. These figures show that the focus of this charity seems to be not on charity but on the return on its investment.
At the end of July, the Gates Foundation was granted QFII qualification in China, and it also became the first overseas institution to obtain QFII qualification in the name of the Foundation. Before that, most of the institutions that obtained QFII qualification were some overseas insurance companies or investment banks.
second, how do charities make money?
MLM means that the organizer or operator's developer calculates the remuneration according to the number of its direct or indirect developers or sales performance, or asks the developers to pay a fixed fee, so as to take the qualification equation. Its purpose is to gain non-profits, disrupt the economic order, affect social stability, and determine whether the banks listed in Article 7 of the Regulations on Prohibiting MLM belong to MLM companies: (1) The organizer or operator asks the developers to join the developers according to the number of their direct or indirect developers (the remuneration is calculated according to the number of their direct or indirect developers). (2) The organizer or business operator asks the developer to pay the fee through the developer, or pays the fee in disguised form to join or develop the qualification of its members to seek non-benefits; (3) The organizer or operator asks the developer to develop its members to join the linear relationship, and the sales performance is based on the calculation of the payment line to obtain the obvious characteristics of non-profit pyramid schemes: 1. The price of pyramid schemes is seriously deviated from the actual value of the commodities themselves, and the pyramid schemes have no use value at all. The service items are purely fictitious; Second, the income gained by the participants is not derived from the reasonable profits from selling products or services, and the fees paid for joining
Third, what does the charity rely on to make money?
All charities around the world basically rely on donations to raise money. Take the donor countries as an example. After all, American charities have carried out international charitable acts, that is, only about 4 million of the 1 million donations have reached those in need. China's charities are basically not higher than 1%, and the amount of projects funded in that year is even dispensable, and the proportion of use and the direction of projects. The high expenditure on the construction of the management office leads to it. About 9% is spent on other expenses, and 1% will be paid to those who actually need it only when a good organization announces the actual expenditure of every dime like a listed company. Because the funded projects are opaque, in fact, the proportion of donations used by recipients is too low, which is far lower than the effectiveness of a certain enterprise donating money directly to the disaster area to buy materials. Personally, it is estimated that enterprises spend a lot of money on actual project actions, and all charities should not be higher than 1 friend.
IV. How do public welfare organizations make profits
The way that public welfare organizations can make money is to provide services or invest. But they can't pay dividends, and they can't make money as their ultimate goal. According to the Notice on Issues Related to the Business Activities of Social Organizations, social organizations with legal personality are allowed to carry out business activities that are compatible with the purpose of the establishment of social organizations or conform to the provisions of the state. Paragraph 2 of Article 17 of the Law of the People's Republic of China on Donation to Public Welfare also stipulates: "Public welfare social organizations should strictly abide by the relevant provisions of the state and actively realize the preservation and appreciation of donated property in accordance with the principles of legality, safety and effectiveness."
Legal Basis
Paragraph 2 of Article 17 of the Law of the People's Republic of China on Donation to Public Welfare also stipulates: "Public welfare social organizations should strictly abide by the relevant provisions of the state and actively realize the preservation and appreciation of donated property in accordance with the principles of legality, safety and effectiveness." The Regulations on the Registration and Administration of Social Organizations and the Provisional Regulations on the Registration and Administration of Private Non-enterprise Units explicitly prohibit public welfare social organizations from engaging in profit-making activities. According to these two regulations, social organizations and private non-enterprise units will be severely punished by the registration authority if they engage in profit-making activities. From warning, ordering to correct, stopping activities within a time limit, ordering to replace the directly responsible person in charge, to canceling registration and investigating criminal responsibility. Moreover, the illegal business amount or illegal income of public welfare social organizations will be confiscated and fined for more than 1 time and less than 3 times or less than 3 times and less than 5 times of illegal income.