🏦 Treasury Fund Phase 1, Phase 2 and Beyond (50% of Net Revenue)
The Treasury is the backbone of Shiburnit Club’s financial structure — built to ensure long-term stability, tax compliance, and operational resilience. It receives 50% of total net revenues and serves as a critical safeguard for the entire ecosystem.
📊 Primary Purpose: Tax Compliance & Risk Management
While we fully expect to benefit from tax write-offs — including property depreciation, operational expenses, and other deductions — the Treasury is intentionally over-funded to ensure we never face unexpected tax shortfalls.
By setting aside 50% of revenue for this purpose, we proactively protect the organization from potential liabilities and keep Shiburnit Club financially stable and compliant, no matter how large we grow.
⚖️ Legal & Operational Support
Beyond taxes, the Treasury also functions as a legal reserve — ready to cover legal costs or compliance matters if they arise.
Additionally, if operational expenses ever exceed the 10% allocation set aside in the Company Profit bucket, Treasury funds can be used to supplement those costs, ensuring platform operations continue without disruption.
🏡 Self-Insurance for SLOP Properties
The Treasury plays a vital role in supporting the Specialized Lease Options Program (SLOP). While major property repairs are the responsibility of lease-option tenants, unexpected expenses can happen.
In such cases, the Treasury can cover significant repair costs upfront, which are then added to the property’s purchase price agreed upon when the tenant secured their lease-option. This prevents tenants from facing sudden large expenses while allowing Shiburnit Club to recover those funds upon purchase.
🔄 Surplus Management & Strategic Reallocation
Once all tax obligations are met and required reserves are maintained, any excess Treasury funds may be rolled over into the SLOP or REI buckets. This allows us to reinvest in housing initiatives, expand property acquisitions, or accelerate real-world project growth — all without compromising our compliance or financial security.
✅ In short: The Treasury isn’t about spending — it’s about protection, preparedness, and peace of mind. By prioritizing tax compliance, legal security, and long-term operational flexibility, this bucket ensures Shiburnit Club remains sustainable, resilient, and positioned for growth for years to come.