2023-05-03 07:57:39
We want to help finance our non-material work through economic activities and projects. This is very common and widespread in non-profit organizations. In addition to the non-material area, many non-profit organizations have commercial businesses in order to use the profits to pay for or support their own work. Like a charity that runs a thrift store to fund humanitarian projects.
Sometimes the business operations are left in the non-profit organization and only delimited there for accounting purposes. Because an economic business operation is fully taxable and is not exempt from sales, corporation and trade tax, even if it runs in a non-profit organization. The special case of special-purpose operation is exempt from corporation tax and trade tax. A large part of the economic business operation is often spun off into a subsidiary in order to make the organizational and tax delimitation clearer.
We chose the second way. With the great success of one of our first books, the graphic report “White Wolves” about the right-wing extremist underground, we also took this step shortly after our founding and founded CORRECTIV – Verlag und Vertriebs für die Gesellschaft UG (limited liability).
In order to set up the subsidiary and to publish books, the mother company granted the subsidiary interest-bearing loans, so that no interest has to be paid to the bank, but these are available for ideal, charitable purposes. In this way we were able to develop our third pillar and continue to expand with our own publishing house in order to strengthen our independence.
Since then, CORRECTIV has regularly published books, graphic reports and other print products on this research or current topics in its own publishing house. This is how innovative formats in journalism are tested. We organize events, hold workshops to learn media skills or provide services such as linking our fact checks to Facebook.
The subsidiary is managed by the managing directors of the parent company, for which they receive no salary from the subsidiary.
Profits from economic activities are transferred to charitable work after they have been taxed, thus promoting the ideal purpose of CORRECTIV.
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