jgnat,
Thanks for posting the financial information. Someday US non-profits will have to do this too.
Only the Congregations have members. The Circuits and Assembly Halls are administrative entities only. Of all new giving, about $8 million is funnelled through the assemblies and circuits back to the Watch Tower Society, Canada. In turn, the Canadian office is contributing over half their income ($15 million) overseas (US Bethel?).
Yes, you have a good point: When 500 to 1500 JWs show up at an Assembly Hall, they give donations that more than cover operating expenses (usually). And the revenue from the food sales also runs a profit (usually). So, the surplus funds are donated by vote back to either the Branch office in each country, or to 'mother' in New York. The idea is that these are 'donations for the worldwide work' and are not declared profits. Of course, the main office in New York then uses these 'donated' funds from Canada and other nations to continue its operations. JWs then donate through their Kingdom Halls and at times directly. They also 'donate' for the literature which covers the cost, and does not make the Society dependant on the 'donations' form the householders. But they get that money too. Also, large and small estates are donated ... and the Society holds many large assets which, is sold, can turn a healthy profit ... but as long as they are not giving dividends to Society stockholders, and retain the funds for non-profit religious use, then it goes untaxed ... and it accumulates and must be invested or put in accounts off shore (Swiss Bank maybe?).
It works similarly in business. I operate retail plazas and condominium projects. The only 'profit' in the plazas is the direct draws the owners take each quarter. These are equivalent to dividends. All other funds retained by me are considered operating funds. We can pass from one year to the next with as little as $200 to as much as $50,000. However, the difference is that income property owners want the 'profits' and are willing to pay the tax to get it. Also, they are operated for profit. But, as long as we retain funds in our operating account and reserve account, it is not declared profit, and is not taxed.
Jim Whitney