Help balance reinvestment vs payouts logic to design a sustainable Trust - Pty model
Guide on designing a sustainable flow of funds from our Trust-owned Pty to the Trust balancing growth reinvestment with dividends. Deliver plain-English guidance (no legal/tax opinion) for a concise overview for a funder-ready, sustainable model from FY2027.
ADVICE
WRITTEN
WHAT WE NEED YOUR HELP WITH
We need advice on how to structure dividend flows and reinvestments between our nonprofit and for-profit entities because this affects long-term sustainability and governance. Help us make the model funder-ready.
WHERE WE ARE TODAY
The Wot If Trust provides facilities - digital and other resources - in Diepsloot that connect local participants to economic activity.
Collabo ( our for profit arm) is 51% owned by The Wot-if? Trust. It is designed to generate revenue and eventually pay dividends to the Trust, contributing to operational sustainability.
However, we need to figure out how this works in practice. What is the right balance between reinvesting in Collabo’s growth vs transferring profit to Wot-if? as income? We also want to ensure the model holds up to due diligence and is legally sound from a governance perspective.
Collabo (Pty Ltd, 51 % Trust-owned) intended to fund Trust operations via dividends.
Both entities currently non-compliant (Collabo catching up audits; Trust behind on PAYE – will fix once IDC funds land).
Need a clear policy for FY 2027 onward: how much profit Collabo retains vs pays out; audit & reporting mechanics; due-diligence proof.
Will probably only become effective in the 2027 Financial Year (our financial year end is Feb 26)
OUR SPECIFIC QUESTIONS
Dividend Policy: How should we structure dividends between entities, and when should payouts begin?
Reinvestment Rules: What criteria should govern reinvesting profits versus paying dividends (e.g., growth milestones)?
Governance & MOUs: What governance structures or inter-entity MOUs should guide decisions and reporting?
Benchmarks/Case Studies: Any SA/global hybrid models we can learn from?
Risk & Reserves: What compliance/perception risks should we watch for, and what cash-reserve logic (e.g., 3–6 months OPEX) makes sense before dividends?
Please create a one-page explainer and simple cash-flow diagram showing how funds move between the Trust and the 51%-owned Pty.
HOW YOUR HELP WILL IMPACT US
- A sound, funder-friendly governance and sustainability model
- Improved decision-making around profit distribution
- Clear reporting and compliance processes
- Confidence that the model is replicable and ethical
- Better alignment between short-term cashflow and long-term mission
We need advice on how to structure dividend flows and reinvestments between our nonprofit and for-profit entities because this affects long-term sustainability and governance. Help us make the model funder-ready.
The Wot If Trust provides facilities - digital and other resources - in Diepsloot that connect local participants to economic activity.
Collabo ( our for profit arm) is 51% owned by The Wot-if? Trust. It is designed to generate revenue and eventually pay dividends to the Trust, contributing to operational sustainability.
However, we need to figure out how this works in practice. What is the right balance between reinvesting in Collabo’s growth vs transferring profit to Wot-if? as income? We also want to ensure the model holds up to due diligence and is legally sound from a governance perspective.
Collabo (Pty Ltd, 51 % Trust-owned) intended to fund Trust operations via dividends.
Both entities currently non-compliant (Collabo catching up audits; Trust behind on PAYE – will fix once IDC funds land).
Need a clear policy for FY 2027 onward: how much profit Collabo retains vs pays out; audit & reporting mechanics; due-diligence proof.
Will probably only become effective in the 2027 Financial Year (our financial year end is Feb 26)
Collabo ( our for profit arm) is 51% owned by The Wot-if? Trust. It is designed to generate revenue and eventually pay dividends to the Trust, contributing to operational sustainability.
However, we need to figure out how this works in practice. What is the right balance between reinvesting in Collabo’s growth vs transferring profit to Wot-if? as income? We also want to ensure the model holds up to due diligence and is legally sound from a governance perspective.
Collabo (Pty Ltd, 51 % Trust-owned) intended to fund Trust operations via dividends.
Both entities currently non-compliant (Collabo catching up audits; Trust behind on PAYE – will fix once IDC funds land).
Need a clear policy for FY 2027 onward: how much profit Collabo retains vs pays out; audit & reporting mechanics; due-diligence proof.
Will probably only become effective in the 2027 Financial Year (our financial year end is Feb 26)
OUR SPECIFIC QUESTIONS
Dividend Policy: How should we structure dividends between entities, and when should payouts begin?
Reinvestment Rules: What criteria should govern reinvesting profits versus paying dividends (e.g., growth milestones)?
Governance & MOUs: What governance structures or inter-entity MOUs should guide decisions and reporting?
Benchmarks/Case Studies: Any SA/global hybrid models we can learn from?
Risk & Reserves: What compliance/perception risks should we watch for, and what cash-reserve logic (e.g., 3–6 months OPEX) makes sense before dividends?
Please create a one-page explainer and simple cash-flow diagram showing how funds move between the Trust and the 51%-owned Pty.
HOW YOUR HELP WILL IMPACT US
- A sound, funder-friendly governance and sustainability model
- Improved decision-making around profit distribution
- Clear reporting and compliance processes
- Confidence that the model is replicable and ethical
- Better alignment between short-term cashflow and long-term mission
Dividend Policy: How should we structure dividends between entities, and when should payouts begin?
Reinvestment Rules: What criteria should govern reinvesting profits versus paying dividends (e.g., growth milestones)?
Governance & MOUs: What governance structures or inter-entity MOUs should guide decisions and reporting?
Benchmarks/Case Studies: Any SA/global hybrid models we can learn from?
Risk & Reserves: What compliance/perception risks should we watch for, and what cash-reserve logic (e.g., 3–6 months OPEX) makes sense before dividends?
Please create a one-page explainer and simple cash-flow diagram showing how funds move between the Trust and the 51%-owned Pty.
Reinvestment Rules: What criteria should govern reinvesting profits versus paying dividends (e.g., growth milestones)?
Governance & MOUs: What governance structures or inter-entity MOUs should guide decisions and reporting?
Benchmarks/Case Studies: Any SA/global hybrid models we can learn from?
Risk & Reserves: What compliance/perception risks should we watch for, and what cash-reserve logic (e.g., 3–6 months OPEX) makes sense before dividends?
Please create a one-page explainer and simple cash-flow diagram showing how funds move between the Trust and the 51%-owned Pty.
- A sound, funder-friendly governance and sustainability model
- Improved decision-making around profit distribution
- Clear reporting and compliance processes
- Confidence that the model is replicable and ethical
- Better alignment between short-term cashflow and long-term mission
THE RIGHT VOLUNTEER
South-African structuring/tax/compliance experience comfortable sharing informal perspectives only (no formal opinions)
Able to explain regulations in plain English
Ideally familiar with PBO & Section 18A registration
HOW WE WILL CONNECT AND WORK TOGETHER
Engagement at a glance
Format: Asynchronous, written advice
Deliverable: Clear notes/documents we can hand to our designer which will help us do a redesign
Submission: Upload your file directly to the workspace (PDF or Google Doc link both fine)
South-African structuring/tax/compliance experience comfortable sharing informal perspectives only (no formal opinions)
Able to explain regulations in plain English
Ideally familiar with PBO & Section 18A registration
Able to explain regulations in plain English
Ideally familiar with PBO & Section 18A registration
Engagement at a glance
Format: Asynchronous, written advice
Deliverable: Clear notes/documents we can hand to our designer which will help us do a redesign
Submission: Upload your file directly to the workspace (PDF or Google Doc link both fine)
Format: Asynchronous, written advice
Deliverable: Clear notes/documents we can hand to our designer which will help us do a redesign
Submission: Upload your file directly to the workspace (PDF or Google Doc link both fine)
ADDITIONAL RESOURCES
SHARE YOUR EXPERT ANSWER
Tone & format tips- Keep language plain and actionable, avoid jargon where possible.
- Use clear headings, concise explanations, and practical next-step checklists where helpful.
- Use bullet points and numbered steps rather than long paragraphs.
- Include links to any frameworks, templates, or external resources you reference
When ready, upload it to the workspace.
Tone & format tips
- Keep language plain and actionable, avoid jargon where possible.
- Use clear headings, concise explanations, and practical next-step checklists where helpful.
- Use bullet points and numbered steps rather than long paragraphs.
- Include links to any frameworks, templates, or external resources you reference
When ready, upload it to the workspace.