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Breaking News US/Australia ll What you REALLY fund when you buy bottled water from charity Thankyou

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A charity which claims to give all of its profits to 'ending poverty' keeps millions in the bank while spending big on staff wages and entertainment  The social enterprise Thankyou, set up in Melbourne in 2008, sells bottled water, personal care and baby care products at premium prices to raise money for charity  It is owned by Thankyou Charitable Trust which receives its profits in quarterly dividends and passes the money on to other charities The website says: 'We commit 100% of Thankyou's profits to ending extreme poverty'  But financial documents seen by newscom

au reveal that over the past four years, Thankyou gave only of 67 per cent of its profits to the charity   The rest it held in the bank to be invested back into the business at a later date – a normal practice of commercial companies  In the 2017/18 financial year it paid out around $698,000 in dividends, only 48 per cent of its near $1 4million profit Share this article Share In the same period, it spent $4 56million on employing its 47 staff including wages, super, payroll tax and other expenses The enterprise also spent $580,000 on 'travel and entertainment' which included flying employees overseas to meet suppliers There was also a hefty $820,000 bill for 'office expenses' for the headquarters on the fourth floor of a building in Collingwood, Melbourne A spokeswoman for the company admitted to newscom that not all of its profits were paid to the charity in dividends and that some were held 'for good financial stewardship' But she insisted that all funds would eventually go to charity  'All funds are ultimately committed to the charitable purposes of Thankyou, which is to help end global poverty,' she told news comau 'If Thankyou entities were to be wound up, anything surplus would go straight through to the Charitable Trust ' She said the high wage bill was justified because it had to compete with big consumer brands – and that it tried to keep travel expenses to a minimum 'All funds are ultimately committed to the charitable purposes of Thankyou, which is to help end global poverty If Thankyou entities were to be wound up, anything surplus would go straight through to the Charitable Trust 'The distribution was lower in 2018 given challenges the business faced when it launched into the New Zealand market whilst managing the existing category expansion and aggressive competitor activity 'She went on to say that profit was held back to 'remain solvent and ensure working capital for things like purchasing inventory and all other standard business costs' 'One of the challenges with our very low retained earnings is we are going against bigger FMCG (fast-moving consumer goods) competitors who have very deep pockets 'This is a challenge we’ve had to manage throughout the Thankyou journey If the business were to ever cease operations everything would go to the Charitable Trust 'Daily Mail has contacted Thankyou for further comment

 

Source: Youtube

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