Quote:
Originally Posted by Tony-GB
Is it true Rolex only makes a moderate annual profit? It's bulk of profit going to charity?
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No, that is not exactly true.
Rolex is a Foundation Trust. As such the exact details are private and need not be disclosed (and they are not) whereas a Charity does disclose because of their non-tax status.
Foundations are set up with certain provisions that must be met to maintain their status with tax deferments, or tax write-offs (different countries have different requirements). Some of those things in the Foundation requirements are thought to be.
. Supporting Charities and Charity work
. Supporting Horological advancement and technology.
. Supporting inernational sports.. Golf, Racing, Tennis, etc.
Once a Foundation meets it's obligations, the "profit" is turned back into the main foundation to increase it's worth, or to increase it's spending on those obligations.
The Foundation can pay the administrators and employees of the foundation whatever wage or salary they vote to pay themselves