- August 24, 2018 at 5:15 am #220629
I want to give a % of business profits to charity and am wondering how to make this a legal requirement for the company. Should there be an amendment to the articles of association stating that a set % of profit be donated to charity? I want it to be binding to prevent any chance of the proceeds not going to charity, rather than just doing it but without any form of legal precedent enforcing the company to make sure this is continually done.
Thank you.August 24, 2018 at 5:19 am #237845
Dock David TreeceModerator
If you want to ensure that your company will donate a certain portion of its profits to charity, you can create an amendment to your articles of organization. This will memorialize your intent. However, it the amendment will not be perpetually binding – the amendment could be reversed or abandoned in the future by the same process that you use to adopt it.
If you want to ensure that some of your business’s profits go to charity, one way to accomplish this would be to donate some of your shares in the business to the charity of your choice. This would give that charity the same rights as any other shareholder including a right to their share of company profits.
Hope this helps,