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This entity will likely be from the direct growth and expansion of the original incorporated entity. The standard principles of incorporation are fairly well known and do not change any at all within the incorporated structure of the community developments. Corporate entities are built and operated under an incorporated banner, allowing for the reduction of tax liabilities through sales and purchases conducted ultimately, all under the same incorporated banner or umbrella. Thus, where one corporate entity under the incorporation shows a marked gain through sales, another can show a net loss through purchases. Given the vast number of corporate interests that will ultimately be required to provide for sustainable growth and even sociological development, the incorporated format for business is the best and most logical and reasonable choice for conducting operations at such a scale.

There will quite literally need to be hundreds of corporate entities all working together for the benefit of each other and for the benefit of the community as a whole. Some of the corporate entities will grow, by necessity, even to the extent that they will propagate global trade between Community Developments and even outside the parameters of the foundation and its communities. Corporate entities will provide job opportunities for the citizens, real-world educational grounds for the students and a host of other benefits including countless goods and services for consumption by the community.

Many of the restaurants and stores will directly benefit from the food forests and other non-corporate structures as well, again throwing books off balance in unrelated industries but allowing for a viable economic balancing act when conducted under the standard principles of incorporation. If there is any major foreseeable challenge, it is likely at the expense of the comptrollers and accountants tasked with tracking all of the sundry books associated with such a conglomeration.

The incorporated parent, the Private Hedge Fund and the foundation will all need a team of Comptrollers working in close cooperation and together to coordinate all of the associated accounting. Each of the larger corporate entities will also require a comptroller and a team of accountants as well. Taxes will be paid by all of the corporate entities based on Generally Accepted Accounting Practices or GAAP, with such funds as a to be reinvested in the community accounted for in the same way that dividends are at present … though a direct cash payment of dividends to members of the community does not seem as if it will be a legal option.

The International Center for Not For Profit Law (ICNL) and most state and national governments make it illegal for a Not-For-Profit Foundation or Organization to pay out cash dividends. However, there is nothing preventing such an organization from strategically investing those funds and utilizing the proceeds for social benefits to those that are in a voluntary association within the scope of operations of the foundation or organizationi. The Adaptive nature of the parent Foundation and the subsidiaries thereof will allow for complete compliance within any and all legal jurisdictions wherein the community developments will be constructed.

i Philippine Law also makes it unlawful for anything less than seventy percent of all donations to be used for anything other than their intended purposes. While some of the larger NGOs have managed to get around this “legal technicality” and continue to use vast sums (upwards of seventy to ninety percent of all donations) for “administrative fees” and “fundraising costs”, this will not be the practice of the FBO. However, a separate foundation will also be established by the Private Hedge Fund in order to “donate” through philanthropic donations, for the costs of education, medical and healthcare, police and fire protection and other social services and utilities and necessities of the residents of the Community Developments.

 

Return to the Table of Contents for Whole System Sustainable Development

 

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