RealTalkAJ

I’ll be answering why Rolex is a nonprofit.

Why Rolex is nonprofit

Rolex is nonprofit because the Hans Foundation’s recognized by the Swiss government and seen as a charity.

Is Rolex a non profit

I’ll be honest in admitting I didn’t know the answer to this at first.

Apparently there’s other folk that don’t agree on a single definitive answer.

According to The Watch Club by SwissWatchExpo it’s owned by a non-profit organization.

The organization that owns Rolex is called The Hans Wilsdorf Foundatuon.

And one of the most interesting rumors I came across is that Rolex could go on operating for years without making any revenue at all.

If we look at this response from a Quora user with the answer to a similar question we’ll see they had this to say about the company.

A majority of their response was based off Wikipedia but there were some good points nonetheless.

Here they are.

My favorite points:

• The company has a history that dates back to the early 1900s with a story of relocation from Switzerland to England
• It took Hans Wilsdorf’s wife’s death to create the Hans Wilsdorf Foundation using all of his Rolex shares to fund it.
• Ever since Wilsdorf died in 1960 the Hans Wilsdorf Foundation owned and operated Rolex
• The Hans Wilsdorf foundation is registered as a charity so that exempts Rolex from needing to pay income taxes

1905 isn’t that far away from modern history although it’s seen a whole generation of life pass through its existence.

It tells me in application to business that relocation is a scenario some of the most reputable brands might have to face.

But then again we’re dealing with a multi-billion dollar company so I’m sure there’s nuances that’s beyond most businesses.

It’s interesting stuff talking about a consistently top 5 luxury watch brand.

I put a big emphasis on consistent too by the way.

And feel free to leave a comment on what you think about the company Rolex in general.

Why do you think that there’s still a debate on if the company’s non-profit?

Is there more to it or it’s cut and dry?

I look forward to your response!

Why rolex donates 90% of profits

Under the guidance inherited by ownership from the Hans Wilsdorf Foundation, they followed suit.

This simple fact actually places Rolex in a non-profit category.

Despite the response that I came across on a similar question via Quora I have to disagree.

There’s a chance that sense it’s been 7 years since they responded, I’ll give them the benefit of the doubt with maybe having their opinion get dated.

Since then though, their moves and overall success as a company ‘s improved from 7 years ago.

One of the biggest changes could be attributed to new tax incentives that business have been provided since 2016.

Taxes

It’s the main reason why most major corporations choose to do charitable deeds.

Of course that opinionated but there’s plenty of clear benefits that you could see a successful business receives for following these tax incentives.

A 90% charitable donation is plenty of incentive when it’s to receive tax benefits.

“What type of donating gets done” you may ask and you could answer it by finding one charity that you support.

Chances are they donated money to them.

When you also add in the fact that they actively campaign for the justice of various social issues, they qualify as a non-profit.

There’s been criticism placed on the company for failing to share the all of the moments of charity they’ve provided but it’s hard for me to buy.

Unless Rolex (the company) itself is more powerful than the government I always place favor to the IRS on doing what’s necessary to get their money.

It can actually be a win-win situation with the right communication and attention placed amongst the profitable companies and government.

Nonprofit FAQs

How do non profits make money?

Nonprofits make their money from donations, grants and memberships.

It’s the ultimate work of networking and communication skills when you break it down.

These funds get secured commonly from generous investors that usually have a vision that’s in alignment with the company.

The team has to have a strong mission when seeking philanthropists that’ll support their cause.

It would most likely take another post that dives deeper into what makes a strong mission statement but to keep it simple it’s compelling.

Can you become a millionaire from a nonprofit?

Nonprofit owners actually make well over millions of dollars when running a successful operation.

The members that work on behalf of the nonprofit get benefits that cover what most fortune 500s would offer for their workers.

It’s ridiculous to think you’ll be rich doing nonprofits but they can generate plenty of money.

Their structure’s designed to where it properly compensates everyone on payroll and the only time they pay the CEOs are when the company’s making an excessive amount of money that needs their attention.

By that point you’re most likely making close to that amount already.

Why do rich people have non profit organizations?

Rich people start nonprofit organizations for numerous reasons.

One of the most common is to reach a certain social status.

Most are looking to become philanthropists.

Philanthropy falls along the industry of setting out to achieve a mission usually in hopes of making the world a better place for whoever they serve.

It’s a worthy goal in seeing the impact they have on humanity as a whole.

But to be specific, they’re simply trying to save money on taxes.

It’s a basic lesson taught with the beginning courses on finances.

Because there’s tax breaks and incentives to make one it would only make sense to do so.

Final Thoughts

Finding out that Rolex is a nonprofit was actually a surprise to me at first, but these questions enlightened some legalities for myself.

Of course, I’ve learned about taxes all throughout my structured class days but building a nonprofit is another beast.