Re: [libreoffice-marketing] Advice Needed

On Sat, 2010-11-06 at 09:19 +1300, Graham Lauder wrote:
> On Saturday 06 Nov 2010 07:42:48 David Nelson wrote:
> > Hi, :-)
> >
> > <butt>
> > I think it's a pity that TDF isn't planning to work up a revenue
> > stream like paid technical support, in a Canonical style... I would
> > have imagined it could maybe win over more enterprise users, notably,
> > and could help finance the costs of running the project (which
> > voluntary contributions are currently not meeting, apparently). It
> > would be interesting to know why, if someone wanted to take time out
> > to explain... 0.2 cents.
> > </butt>
>
> Simple business, TDF is a non profit.  If it invoices for services it becomes 
> a profit making enterprise 

Not if it demonstrates that all income is used up in operational costs
and it does not therefore make a profit. That might of course be
different in different countries. In the UK not for profits don't get
tax breaks on donations, but charities do. I think charities can still
earn income though as long as they spend it all on their targeted
sector. eg AQA is an exempted charity in England and charges schools for
exam certification it turns over about 200 million dollars a year but
has to spend any profits on education. If a citizen made an donation to
AQA the Tax system would add an extra 20%. So being a charity mainly has
a benefit if people make donations. If they don't, being a not for
profit is just as good.

> which then opens a whole pile of tax issues and 
> other legal compliances in a number of jurisdictions.     
>
> Also to establish a world wide support network would cost money that the 
> foundation doesn't have.  However local enterprises building business off the 
> back of the foundation's products and then contributing a small percentage of 
> profit as a donation is a business model that can grow worldwide

Moodle uses that sort of model. Moodle partners pay a small amount back
to the centre from their earning for the use of the Moodle logo and the
partner title on their web sites. Moodle restricts the number of
partners to ensure there is some real value in being an official
partner.


-- 
Ian
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