facebook pixel
  • Watch Certification Services of America100% Certified Authentic

    BOB’S WATCHES

    The Trusted Name in Authenticated Luxury Timepieces

    Every watch on our site is 100% certified authentic by WatchCSA, the industry's leading independent authority on watch authentication.

  • SIGN IN

BOB’S WATCHES

ROLEX BLOG

Is Rolex a Non-Profit?

December 27, 2016

BY Paul Altieri

SHARE

There’s a statement that’s sure to invoke wonder, skepticism, and outright disdain among the wannabe horological cognoscenti. Indeed, search around the interwebz and you’ll see such entries in the forums. Members mocking and laughing at the thought that a luxury manufacturer that sells watches from the mid-four figures to nearly six figures apiece could ever be a non-profit.

But of course, like all things, there’s a lot more to the history of Rolex.

Rolex a Non-Profit

Rolex Batman BLNR GMT-Master II

The plain fact of the matter is Rolex is actually a series of companies headed up by Rolex S.A. And in fact, just to further complicate things, some of those companies own portions of each other. But basically they all funnel into Rolex S.A., which in turn, is wholly owned by the Hans Wilsdorf Foundation. That foundation is recognized by the Swiss government as  a charitable trust, and thus, pays no taxes.

This last fact is where the “non-profit” attribution comes from. And dear reader, please keep in mind that Swiss law does not fit absolutely congruently with United States law. And it is U.S. law which informs most of the internet doubters.

Rolex a Non-Profit

Rolex Yacht-Master 16628 With a slate blue dial.

Making Money: Rolex a Non-Profit

But legal differences between countries aside, you could make a relatively sweeping statement that, in general, not-for-profit companies do indeed make a profit. From Rolex’s revenues (reported to be well north of $4 Billion), salaries are paid and operating expenses and manufacturing costs are covered. Much of the balance left over gets plowed back into the company, or goes to an unknown number of charities. And what’s left after that goes into the bank.

Some have speculated that Rolex could go on operating for years with no revenue at all, simply on what they’ve got socked away in the corporate mattress. But we’ll never really know, because owing to their legal status, neither Rolex S.A. nor the Wilsdorf Foundation are under any obligation to disclose their financials.

Black Dial Red Submariner

Black Dial Red Submariner Rolex

A Charitable Organization

So what does this “corporate” structure look like?

Well, Hans Wilsdorf formed the Foundation just after his wife died in 1944. He was sole owner of Rolex, and gave all his shares to the Foundation. When he passed away in 1960, control of the Foundation went to a reported five Foundation trustees. These folks are not shareholders or owners. They are merely custodians. Their main charter, if you will, is to perpetuate Rolex S.A., as well as look after the aforementioned unknown number of charitable activities.

But we do know those charitable entities include The Rolex Institute (which furthers the company’s charitable activities), The Rolex Awards for Enterprise (which recognizes pioneering men and women around the world who work to improve life on Earth), and The Rolex Mentor and Protégé Arts Initiative (which supports a number of extremely talented young artists).

Rolex A Non-profit

Rolex Daytona 116515LN with black Cerachrom ceramic bezel and leather strap

Now, it’s true, the Rollie on your wrist is a magnificent timepiece. But now you know the rest of the story – at least the part that’s available to be known by the public at large. Now you can be proud that your Rolex has done its part to support numerous philanthropic endeavors around the world.

WATCHES YOU MIGHT LIKE

SHARE

2 Responses to “Is Rolex a Non-Profit?”

  1. Zulfikar Khorakiwala. says:

    I used to sell the famous brand Swiss Made ‘Rolex’ Watches in Arabia long ago and I recommend everyone to buy one.
    But because of it’s exhorbitant prices on every model I just can’t afford to buy one the 36 mm. ‘Rolex’ “Yachtmaster” that I desire to wear and pass down as an heirloom to my children and grandchildren.
    Thankyou.

  2. Ray says:

    I am sure you meant to say “life” not “Live” …. which recognizes pioneering men and women around the world who work to improve live on Earth),.
    Thanks for the info !

Leave a Reply

  • This error message is only visible to WordPress admins

    Error: API requests are being delayed. New posts will not be retrieved.

    There may be an issue with the Instagram access token that you are using. Your server might also be unable to connect to Instagram at this time.

    Error: API requests are being delayed for this account. New posts will not be retrieved.

    There may be an issue with the Instagram access token that you are using. Your server might also be unable to connect to Instagram at this time.

  • Get The Best Deals - Buy A Rolex
    Sell A Rolex

    "The most trusted place to buy or sell a used luxury timepiece" – WSJ

    • AWCI
    • Jewelers Board of Trade
    • IWJG
    • TrustLock
    • Spirit of Enterprise
    • PayPal Verified
    • Inc 500
    • FedEx
    • UPS
    • The Hartford

    Bob's Watches is an independent watch dealer and is not sponsored by, associated with and/or affiliated with Rolex S.A., Rolex USA, or any other brand listed on its website. Bob's Watches only sells pre-owned watches and provides its own warranties on the watches it sells. The brand names and associated model names for Rolex, OMEGA and other manufacturers are the trademarks of their respective owners.