PORTCULLIS LIMITED
A non-stock, non-profit, non-governmental, exempt corporation

Q: I've always wanted to know how a non-profit corporation or registered charity can make a profit, as seems to be the case with your organisation. What do you say?

A: We say that the term non-profit is confusing, for unlike most non-profits, Portcullis can take in more money than it costs to operate Fort George. It is acceptable, lawful and even desirable for a non-profit organisation or registered charity to have funds in reserve at the end of each fiscal year. Given that no private organisation or business can operate effectively at a deficit, most successful and responsible non-profit groups find ways to generate an annual surplus and build a reserve fund to insulate their organisations from unpredictable or unpleasant changes, such as the withdrawal of a government contract or the failure of a potential donor to fulfil a pledge. A properly operated not-for-profit with a healthy reserve fund not only has the flexibility to develop new programs, it can also respond to sudden opportunities or emergencies. What distinguishes non-profit organisations from companies operated for profit is not the ability to make a profit, but what happens to those profits. A for-profit group which generates net revenue can choose to distribute those profits to owners, investors, shareholders and/or executives. Not-for-profit organisations on the other hand, have no owners, stockholders or investors, being initially dependent on the generosity of the public. Most non-profit groups in the United States are also forbidden from distributing their net revenue to corporate officers or directors and are thus non-profit-distributing in that they do not exist to earn money for private benefit, but for the public purpose that they serve.

Q: You said that the government of Grenada had approached a number of organisations for loans or grants to fund the entire Fort George project. How much is the effort going to cost?

A: The current estimate from debushing to opening day, including staff training, is US$ 1.35 million. We have already considered the fact that there may be additional costs which are inherent in the rehabilitation of historic structures. As an aside, Portcullis Ltd. cannot borrow from international organisations, as most only assist sovereign nations. Portcullis can, on the other hand, act as the implementing agency or operating NGO for the Fort George Project in cooperation with the government of Grenada and international lending institutions.

Q: You ask that we send our cheques to a post office box. Is this safe?

A: It is because it is safe that we use a post office box. It is difficult for a person intent on stealing to gain access to a post office box located in a US Post Office building, as ours is. Most countries of the world find this form of address acceptable.

Q: You said that the government of Grenada had approached a number of organisations for loans or grants for a loan for the entire project. Why do you need us to help?

A: Given the amount of time which is likely to pass when governments and international lending institutions are involved in any project, suggests that Portcullis should move forward now, not a year or two from now. More importantly, if we spend your money to fix the fort, we reduce the amounts which must borrowed or repaid. If necessary, we will repair and open the fort one segment at a time. As an example, we can set up a reproduction 18th century carpenter shop for US $10,000. We can sell the goods produced by that shop in our small museum store in order to support the work of the fort, rather than using the proceeds to pay off a loan.

Information last updated: 28 May, 2000 Ó Portcullis Limited. USA 1999- 2003