01.02 The Hub Proposal V2
This thread is to revisit and clarify the preferred org design known as the Hub Proposal V2.
Madeline FountainTue 1 Dec 2020 9:13PM
REC Pty Ltd could act as a guarantor or a creditor for the new ops entity to begin trading. Ticket revenue cannot be relied upon as post COVID, ticket companies are highly unlikely to release funds pre-event. Quicket, the current vendor has its standard cancellation at 10% (thought his was apparently negotiated down in 2016). Seed capital will need to be negotiated in principle prior to registration and contracts signed immediately upon registration if the new org is to assume control of the event.
Madeline Fountain ·Tue 1 Dec 2020 9:13PM
The Cultural org has purposes beyond the production of the event Burning Seed.
The CO is a registered charity.
The CO owns the trademark Burning Seed.
The Operational Org produces Burning Seed under license.
The license fee is the agreed amount of operating profit from the event.*
*consultation with a tax lawyer is necessary to determine whether this is the most appropriate financial arrangement between the two orgs. If the CO is a registered charity is may be exempt from GST and certainly exempt from income tax. In charging a license fee as the mechanism for funds to be moved into the low risk entity, there is no urgency to gain DGR status for the surplus from ticket revenue to flow back to the CO (in the form of a gift from the ops entity)