What Does 100 Percent Of Proceeds Mean

ELI5: When a grouping says "100% of proceeds" are going to a clemency grouping, does that mean they are taking a loss on every auction or are they breaking even?

For example, I purchase a T-shirt where 100% of proceeds are going to charity. The shirt costs $20. Does the charity get $20 or practice they get whatsoever the net turn a profit is afterward production costs are deducted?

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level i

It can mean either gross proceeds or net proceeds, but more often than not it's going to refer to cyberspace proceeds.

level 1

Essentially information technology relates to whatsoever profits after the cost of goods and whatever staffing costs are taken into account.

For example a t-shirt retails for £15, the materials cost £5 and the cost to make and distribute it cost £2, which means £8 would exist the 'proceeds' in this case.

level 2

Profits and proceeds are unlike things. Proceeds is your revenue; if 100% of proceeds of selling a shirt become to a certain clemency then all the money collected become towards the charity.

level 1

Technically that is not specified so it can be either or. However most probable they volition only pay the net profits from the sale to the charity as the expenses involved in the design, production and shipping of products such as T-shirts is quite big compared to the income on them. Nonetheless in other cases, for instance concerts, the costs are ordinarily low as the equipment are already paid for by other concerts and would take been unused if not for the clemency concert and anybody working on the charity concert is usually working for gratis. In this case the internet profits are a large office of the gross profit and information technology would exist hard to defend someone getting paid for holding a charity concert.

level 1

Net profit subsequently breakeven, direction fees, and marketing fees. Source- worked as a salesman for one of the biggest not-profits.

Although some differ only thats the general trend I see.

Existent question is management and marketing fees. Pm for more info.

level 1

No, they are not taking a loss. They are taking a tax-deductible loss. They are looking at things that will improve their public image. Selling something you have or can make at depression cost and turning the proceeds over to a charity allows you to consider your costs as a donation to the charity. Since the clemency gets profits + costs = all the revenue, they are super happy. The concern gets a nice deduction, peradventure on appurtenances that they were going to take a hard time selling otherwise, and y'all retrieve they are a great visitor. It's a win-win-win!

What Does 100 Percent Of Proceeds Mean,

Source: https://www.reddit.com/r/explainlikeimfive/comments/fw4z7j/eli5_when_a_group_says_100_of_proceeds_are_going/

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