Latest / Beyond Sovereignty / #047 - How These Multi-Billion Dollar Brands Funnel Their Cash

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#047 - How These Multi-Billion Dollar Brands Funnel Their Cash · Beyond Sovereignty

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  BHP has a foundation, so does Cotton On, Ronald McDonald
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  House in Southeast Queensland alone is
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  a multi-million dollar organization in its own right.
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  Finnies, the Salvos, Woolies, JB Hi-Fi, all
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  of them. Most people believe that's the marketing arm, the
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  nice bit on the side. But the reality is that's the
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  structure, the biggest brands in this country hold their
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  money in. It's how they end up in the room when the policies
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  get written. And there are four things you need
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  to see. Over the past 20 years, I've helped hundreds
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  of entrepreneurs set up and run not-for-profit structures
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  legally, but more importantly, compliantly. So in
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  this episode, I'm going to be stepping you through those brands one
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  at a time. on the government's own public register and
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  why the entity that pays no tax is also
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  the entity that gets paid. Okay guys, I'm so
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  excited to show you this. This is the ACNC website. So this is
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  the public register for charities in Australia, the
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  government's website. And we're going to go into every single one
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  of those charities that you really want to know about and you can see exactly
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  how much cashola they are bringing in. Let's go,
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  we've got cotton on here. So if you go into these,
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  these are the federal reports that are on the
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  government website. So you can see here they go through, we've
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  got their profile, we've got their financial documents here, we've got the
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  people that are in them and then we've also got their history. So
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  you can literally go onto the government website and check everything. Now,
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  I'm going to be showing you down here on the right hand side, which is the financial review
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  bits, because that's the juicy great stuff. So as
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  you can see, Cotton On, their charity revenue last year
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  was $18,381,120. And you can see down here, which is like where all the funding comes from. And
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  so they had the majority of theirs is this black which
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  is 92% was from revenue
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  from donations and bequests. So all of that
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  was from donations and requests. And then you've got 7.18% and
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  that's from investments. See, this is why charities have
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  investments because they make such good cashola out of it. And
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  then you can see what their expenses were. They had
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  all of those expenses. And remember, you can only make more
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  if you spend more. So you need to have expenses
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  like these guys. What are they spending their money on? We've got 59% and that
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  is going to grants and donations made for
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  use outside of Australia. They're also doing it, mate. See?
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  The government's doing it, everybody's doing it. Then
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  we've got 18.79% and that's for grants and donations made
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  for in Australia. So they're giving away that
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  to Australian entities as well. And then we've got this blue guy,
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  which is employee expenses. So they get paid their employees.
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  And then we've got the green one, which is all other expenses, which is like company expenses,
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  right? Guys, you are going to be so surprised. This is just one branch
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  of the Ronald McDonald House in East Queensland. Do
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  you want to know how much money they're making? Ready? Let's go. $12,632,000 and
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  just for one Ronald McDonald House. So as
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  you can see here, oh sorry, Ronald McDonald House, South
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  East Queensland Limited. So this is their charity and where
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  are they getting their $12 million from? So
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  they're getting 35% from Revenue from the government,
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  from government grants. Oh, have we not spoken
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  about that previously? I told you. And then we've got 9% of
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  other revenue, which is, what does that even mean?
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  And then we've got 31%, which is from donations and
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  bequests. And then we've got 21% from goods or
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  services. So from them selling their goods. So the charity
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  sells their goods to the people that come and stay there. Isn't that lovely? And
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  then 1.89% come from their investments
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  that they have so probably from the building that they own and other
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  buildings and stocks and shares and human trafficking maybe
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  and then we've got down here their total expenses are 13 million as
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  well so they're spending more they're spending more
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  than they're getting in because then they know that they're able to get more money
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  very smart right next one guys we have got the ladder project
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  now you're like what is the ladder project Well, that's
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  an AFL Players Football Association. So,
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  let's go into the footy club. So, they are earning
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  $2 million, $2,321,000 in this one
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  charity, because believe me, they have got many. So, they are getting 88% of
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  revenue from the government. They are getting 5.17% from donations
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  or bequests. You'd think it'd be more than that, wouldn't you? But no, most of it comes from the gov. And
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  do you know why that is? Because they support Aboriginal and Torres
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  Strait Islander people, so they're able to get a lot of
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  funding from government grants. Then they are able
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  to get rest from goods and services, so they're selling stuff too,
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  that 4% goes from goods and services. And then they've got investments
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  as well. How much do they spend? They spend $2 million. So,
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  they make a good $300,000. Well, they keep a bit of
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  funding in there, and then they're spending it on employee... What?
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  Employee expenses. 71% of it goes to employee expenses.
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  Interesting. Questionable. And then we've
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  got all other expenses. What does that even
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  mean? It's very interesting, isn't it?
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  So yes, you can see what their organisation's doing. Okay, next
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  one. We have got Australia's religion. That's
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  right, Australia has its own special religion. It's called the Salvation Army.
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  The Salvation Army is the religion of Australia. Now
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  let's go into their numbers. $1,204,800 of revenue last
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  year. And
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  this is just for their Salvation Army social
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  work group. That's just one little itty-bitty
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  section, right? So that's what I want you guys to understand, that
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  these entities, these not-for-profits, billions
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  of dollars, how does they get their money? Let's have a
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  look. 52% come from the government. That's right,
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  from government funding and grants. Interesting, you
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  can do it too. Then we've got 12% from donate, only
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  sorry, only 11% from donations. Interesting
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  to note that guys. Then we've got 34% that comes
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  from goods and services, so when you buy their clothes. And then
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  we've got the rest from the investments. Now, what were
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  their expenses? Yes, they did. They spent
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  more than they got in. Interesting, because that is how you make more money.
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  It's a smarter way, right? And most of it goes to, oh,
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  employee expenses. Interesting, very
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  interesting when they have volunteers in the organisation. Who
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  are they paying? Directors. Now, guys, the
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  pattern that I'm recognising, and I wonder if you are too,
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  one of them, is you spend more than you
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  make and you will get more in. That's something
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  that I'm very aware of, that you should be aware of, that our governments
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  do very well. Because people are like, the federal budget, oh
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  my God, they're spending too much. They can only get
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  more money if they spend more. So, federal budgets
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  are a bit of a scammer. Now, the second pattern
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  that I'm recognising through this is also a lot
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  of their funding comes from the government. So they're the ones
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  that are applying. That's what I mean. All of these corporations are
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  the actual people, oh, I'm sorry, are the actual entities
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  that are applying for the grants. And they have been doing it
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  for a very long period of time, so it snowballs. And they're in that stage
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  where they're able to get more and more government funding because the government knows
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  that they're gonna spend that money. And so the government's able to give them
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  more because the more you spend, the more you can receive. They wanna know that you're able
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  to spend the cashola. Spend the cashola and
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  they can give you more. That is some of the amazing things
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  that I am recognising in there. And the third thing I'm recognising is
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  the employee expenses. Interesting when they're
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  not-for-profit organisations where most of their staff are
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  not staff, they're volunteers. So, where is that money going you
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  might ask? Directors. Interesting, because directors can
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  get paid wages. So, if you're a director of your entity, yes,
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  you can get paid wages, just like these organisations do.
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  Interesting. Guys, I just want to show you some social proof. So,
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  let's go into the Sanitarium Wheatbeaks. Here we
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  go, you can see. Sanitarium Wheatbeaks was first registered
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  as Australia's first health company in April 1898. Was
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  established as part of the Seven Day Adventist Church of Australia to promote
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  health foods. There you go. Okay, now
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  the Catholic Church of Sydney. Did you know the
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  Catholic Church of Sydney has its own banking system just for Catholics? I
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  didn't either until I found it. How cool is this?
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  So, only for, can you see there? Can you see there? Only
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  for Catholic entities. 30 years of experience. The
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  Catholic Development Fund was established by the Cardinal. Now, the
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  reason that this is so fascinating is because they have
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  their own governance system, as you can see here, that
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  they use for how they're going to distribute the
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  funds. So they've got their own private bank. Look
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  here, only Catholic entities can be part of the CDF.
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  We promote charitable and educational needs and we do
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  it privately. Holy moly. Yeah,
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  like, oh my God, it's so good. And then there's their board of directors
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  there, like. cash management accounts, fixed
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  term deposits, current accounts. Like,
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  why work with us? We're committed to maximising the
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  benefit of pooling church funds rather than directly depositing
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  within the banking system. Can you see it say there? Ensuring
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  that any surplus are retained to fund the good
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  works of the church rather than being paid to shareholders of banks.
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  Let Create your own banking system. I have three clients that
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  have their own banks. Anyway, okay guys, I have to show you this because
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  I want to show you some of the world's influencers. Now,
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  if you go BHP, so once you have an
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  entity that is corporate level, then you actually
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  are able to, again, like create your own charity and all that.
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  Now, the best thing about BHP, well, not
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  the best, but the best for us to know, is that their board of
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  directors, there's one in every single country around the
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  world, Now, if I was to hallucinate, I
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  would be saying that they have got a different, like
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  obviously they've got different board members in every single country, but the whole point of
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  that is for government influence. So when you have an organisation that
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  has global entities and global governance, then that means that you can
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  influence the government and potentially pay them out. That's
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  just a hallucination that I came up with, but it's just so interesting to know, right?
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  Now, we have got the most interesting ones. You're
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  going to love me for this. So, this was a childcare
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  centre. This is a childcare centre in Australia. They have got three charities,
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  multiple billions. They've only got 600 locations,
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  677 locations, and they've only got seven directors. So,
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  let's have a look at their charities. Good Start Early
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  Learning Centre. I bet you didn't know it was a charity. How cool is this?
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  Look at this guy. $1.6 billion.
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  Where is all of their money coming from? Oh my gosh, look
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  at that, 71% coming from government and
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  then 27% coming from goods and services that
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  they are selling and then a little bit coming from other revenue. How
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  much did they make or spend? Yes, okay, they spent 1.6. So
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  they actually kept a little bit in their kitty. What did they spend it on? Oh,
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  employee expenses, but they've only got 677 shops.
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  So where does that go? Well, when you look at their fine print, it
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  actually goes to their seven directors who all get paid over $1 million every
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  year as being a director on their charity. Interesting, just
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  thought you should know that. But oh, but wait, they have a second charity? Yes,
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  they do. Let's have a look at what their second charity is. So,
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  Good Start Early Years Limited. Oh, this one looks a
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  bit different, doesn't it? Okay, they're only making $37 million
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  in this one. Now, where does the revenue come from? They've got
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  89% coming from goods or services. Oh, So what,
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  some of their shops would be put through as a PTYLTD and then they donate all
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  of their funds into their charity? Potentially. Or maybe
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  their other charity donates into this charity? Yeah. Probably
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  both, yeah, so $2 million is going into other revenue. Okay,
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  I didn't realise if you clicked on that it went like that, that's cool. Wow, yeah,
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  so they've got revenue also coming from the government, which is only 4%, it's
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  only $1 million. Love it, because
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  they're getting funding for children, right? So, then
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  how much money did they spend? They spent $40 million. Interesting.
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  They spent more than they got. Are you seeing the
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  pattern? They spent more than they got so that they could get more
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  funding. Now, where does their money go? Again,
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  this one. Oh, wow. Okay, let's look in the employee expenses. Can
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  Let's round it up because we're talking in the multi-millions. $26,800,000 went
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  to employee expenses. So their directors are
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  Lamborghinis, I don't know, maybe they
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  have their own private planes. I'm going to get one too. You should get one too. It's how we help
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  more people. Now over here, what else? We've got
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  other expenses, $13 million going into all
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  other expenses. admins, private yachts, jets, planes.
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  I don't know where the money is going, but it's going to other places.
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  So guys, what does this show you? What does all of this show you?
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  What is it teaching you? What is it allowing you
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  to see is possible in this sector? Because it's not
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  about not-for-profit and don't make much money and be like
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  not having much revenue. No, it's the complete opposite.
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  It's get banked, support other friends' charities,
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  support yourself, support all the missions that you're interested in, get
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  government funding, get government grants, get corporate grants, get
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  funding. so that you can support more things that you're passionate about
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  and stop playing small, play bigger. If
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  you're a millionaire, become a multi-millionaire, become a billionaire
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  and support more. If you are in service-based industries,
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  create a charity so that you can help more people. So
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  tell me in the comments below, what does this inspire you
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  to want to create? And then also, if you're like,
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  I'm ready, I want to make my billion dollar brand, then go into
• 15:18
  the show notes, click the link in my bio or wherever you
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  are, and then book a call. Let's jump on and
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  nut out your specific strategy. And if you're like, oh, I need more information.
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  I'm just not there yet. That's totally cool. I've got free resources. They
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  are awesome. Go into the notes, click on the free resources, like
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  nerd up like I do and learn more so that you are really