It says 75% of the net income. How is the other 25% used?
- This is a common question asked of not-for-profit and charity organisations to determine what their administration costs are as a portion of their income before making a decision to donate. Camino for Good however, is a For Profit Benefit Corporation selling a product (namely the Virtual Camino App).
- Like any business selling a product, Camino for Good has to make sales in order to cover its fixed and variable costs. If we only made one $60 USD sale in a month then we would be running at a loss so no portion of the fee would go to help albergues. It is the volume of sales that determine how much in relief funds we can give to albergues.
- Purchase of the Virtual Camino App comes with a neck gaiter and patch delivered to anywhere in the world. Cost of manufacture and delivery is part of the $60 USD fee and varies with each country.
- As a business, we are required to pay expenses by their due date in order to keep operating. Our major operating expenses are internet hosting fees, internet support tool subscriptions and support and development costs. All of these expenses increase with sales volume.
- Generating sufficient sales in order to meet operating expenses and have money left over for albergues is only possible with strong marketing and advertising campaigns both of which have their own costs.
- Camino for Good has been working hard to keep expenses low during this time with the partners contributing many thousands of hours at no labour cost to maximise funds available for albergues.
- People are surprised that Camino for Good is committing 75% of our net profit when other similar companies are contributing in the order of 10% or less. Other businesses stating that they are committing 10% do not generate this same question as it is understood, as a normal business principal, how the remaining 90% is used.
- In the Camino for Good business plan, 25% of net income is held in capital reserve for future product development (more Camino routes! and improved app features) and return on investment for the founders.
- On our site, we do make provision for people to donate without purchasing the app. We treat donations differently to purchases and pledge 90% of the amount donated to go into the albergue relief fund without being counted as part of our gross income.
Information about who we have helped can be found HERE
Information about our company can be found HERE
Information about our founders can be found HERE
- An advantage of being a for profit company is that it allows Camino for Good to donate our proceeds to the for profit and private albergues in Spain. As a non profit we would not have the freedom to do this.
- As a social enterprise, using a 'Profit for Purpose' business model, the Virtual App as our business and supporting the Albergues as our mission.