[Kal Duams]

Hi guys,
Do you know if a company can give all its profits to humanitarian associations? Is it legal?

And other question, do you know if a company can invest its money with buying immovable property or maufacturing machine from its sales revenues, and not from its profit?

If a company can do this, I think it can give a lot of money for good things without go to the bankrupt.

Thank you if you help.

[ScottGem]

A company can do anything it wants with its net profits.

I used to work for an organization that used the profits from a chain of stores to fund philanthropic projects.

[smoothy]

If it's a privately owned company sure they can, if its owned by investors... they have a greater say in if they can or can' do that.

[joypulv]

Most companies are started by single individuals, who work day and night for years, sleeping at their desk, going without fun, spending nothing on themselves. Most of them want that profit to pay themselves back. Sure, after decades and millions and billions of revenues, they can start giving it away. But often by then they have stock, and that means investors and the required board of directors can say that they can't give all their profits away, as smoothy said.

I'm not sure what you are getting at. The biggest friend of charity is the tax law that gives tax deductions for giving to charities.

Best idea of all: the charity who has a for-profit branch, to raise money to give to the not-for-profit branch.