¶ Rule 1: Free or at Cost
¶ Free
The term “Free” refers to the provision of assistance within the H.e.l.f.a. concept without financial compensation. This means that the offered support or service is provided to recipients without direct financial burden. A detailed examination of this concept illustrates that it encompasses not only the absence of monetary transactions but also certain principles and values:
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Voluntariness: The provision of assistance is voluntary. Those offering their support actively choose to do so without coercion or remuneration.
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Common Good: Assistance is for the benefit of the community. The primary goal is to have a positive impact on the group or society and not to achieve individual financial gain.
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Resource-Based: Assistance is based on the provision of resources, whether it be time, skills, knowledge, or other forms of support. These resources are shared to enhance life within the community.
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Equality: Freedom also means equality. Everyone in the community has equal access to the offered assistance, regardless of financial capabilities.
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Building Trust: The act of providing free assistance fosters the building of trust within the community. It demonstrates that members are willing to support each other without financial incentives, leading to stronger social bonds.
It is essential to emphasize that freedom, in the context of H.e.l.f.a., is not merely the absence of monetary transactions but an expression of a fundamental attitude toward community promotion and mutual engagement. It aligns with the goal of building a more humane and supportive society where the needs of each individual can be respected and fulfilled.
¶ At Cost
The cost price is the price at which a product or service is manufactured or provided, covering all direct costs associated with production or provision. This includes costs such as materials, labor costs, operating costs, and other variable expenses. However, the cost price does not necessarily account for all possible costs associated with business operations, such as overhead costs or certain indirect costs.
The calculation of the cost price is essentially a way for businesses or organizations to determine the actual costs of manufacturing or providing a product or service. The formula for the cost price is:
Cost Price = Direct Costs + Variable Costs
Here:
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Direct Costs: Costs directly related to production or provision that can easily be assigned to a specific product or service. This includes material costs and direct labor costs.
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Variable Costs: Costs that change directly with the quantity of units produced. This includes variable operating costs.
It is important to note that the cost price can be used as a basis for setting selling prices. Organizations can decide whether to use a cost price or another price, depending on their goals, market demand, and other business considerations.
In the context of H.e.l.f.a., the consideration of the cost price for assistance is emphasized to ensure that the provided support is sustainable and does not cause financial losses for those sharing their resources.
¶ Examples of Direct and Variable Costs
¶ Examples of Direct Costs:
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Material Costs: In the production of a product, the costs of raw materials or materials that directly go into the end product can be considered direct costs. For example, the costs of wood, metal, plastic, or other materials used in furniture manufacturing.
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Direct Labor Costs: These are the costs of labor directly involved in the production or provision of a product or service. This includes wages and salaries of workers directly working on production, as well as fringe benefits such as social security contributions and benefits.
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Packaging Costs: If the packaging of a product is specifically designed for that product and not used for multiple products, the costs of that packaging can be considered direct costs. This could be, for example, the packaging for a specific electronic device.
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Workplace Materials: Costs for specific materials used by an employee directly for a particular task or project. For example, paints, brushes, and canvases could be considered direct costs for an artist.
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Wage Supplements: Additional payments or supplements paid directly to employees and specifically related to a particular task or project. This could include overtime pay or hazard allowances for hazardous work.
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Specialized Equipment: Costs for specialized equipment used exclusively for a particular project or product. For example, the acquisition of a special tool for the production of a prototype could be considered direct costs.
¶ Examples of Variable Costs:
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Variable Operating Costs: These are costs that change with the quantity of units produced and are directly related to the operation of the business. For example, the costs of energy used in the production of products can be considered variable operating costs. The more products produced, the higher the energy costs.
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Variable Labor Costs: In some cases, certain labor costs can also be considered variable if they are directly related to the quantity of production. Overtime costs or additional labor hired only when needed could be considered variable costs.
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Direct Shipping Costs: If shipping costs vary directly with the number of units shipped, they can be considered variable costs. This could be the case for an online retailer where shipping costs vary per shipped unit.
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Sales Commissions: Costs directly related to the sale of a product or service. If sales staff receive a commission per unit sold, it is considered variable costs.
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Packaging Material: Costs for the material directly used for the packaging of products. These costs may vary depending on how many units need to be packaged.
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Shipping Fees: If the costs of shipping products depend directly on the number of units shipped, they are variable costs. This could be the case for shipping services where fees vary per shipped unit.
It is important to note that the classification of costs into direct or variable categories depends on the specific structure and operational processes of a business. In some cases, the same costs may have different categories for different companies.
¶ Why is This Rule So Important?
The first rule in H.e.l.f.a., stating that assistance should be either free or at cost, is crucial for several reasons:
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Establishing a New Form of Togetherness: The rule lays the foundation for a new form of social togetherness. By offering assistance for free or at cost, a value system is promoted that is based on community and mutual support rather than purely economic principles.
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Promoting Humanity and Love: The rule emphasizes the importance of humanity and love within the groups. The idea is that people are no longer guided solely by economic motives but rather by a common interest in the well-being of the group and the promotion of love and compassion.
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Redirecting Awareness to What Matters: By focusing on free or cost-based assistance, awareness is redirected away from purely financial considerations. People are encouraged to put their resources and skills at the service of the community without primarily aiming for financial gains.
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Foundation for a Gift-Giving Society: The rule aims to establish a gift-giving society where people are willing to generously share their skills, time, and resources. This fosters a culture of giving and sharing that goes beyond purely market-driven principles.
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Applicability in Different Societal Forms: The rule emphasizes that the H.e.l.f.a. concept can be integrated into various societal forms. Regardless of the prevailing structure of a society, the rule provides a framework aimed at fostering collaboration and love.
Overall, the first rule is of central importance to create a foundation for a humane, supportive, and loving
society that goes beyond purely economic principles.
¶ What Does This Rule Not Mean?
The rule that assistance in H.e.l.f.a. should be either free or at cost does not mean:
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Exclusion of Individual Needs: The rule does not mean ignoring individual needs, especially financial needs. It is intended to ensure that the primary motivation for assistance is not based on financial gains.
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Devaluation of Expertise: The rule does not mean that expertise and skills are not valued or acknowledged. People should still be able to contribute and appreciate their skills, even when assistance is provided for free.
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Exclusion of Individual Living Costs: The rule does not mean that the living costs of those offering assistance are not considered. The cost price refers to covering the costs directly associated with providing assistance without additional profit.
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Devaluation of Professional Services: The rule does not mean that professional services should not be recognized. Even if assistance is offered for free or at a low cost, professional standards can be maintained.
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Call for Financial Sacrifices: The rule does not mean that people have to make financial sacrifices to offer assistance. Instead, they are encouraged to generously share their resources without facing financial difficulties.
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Exclusion of Joint Decisions: The rule does not mean that joint decisions within the groups are not respected. Instead, it ensures that the basic principles of free or low-cost assistance align with the goals and values of the group.
In summary, the rule should not be understood as a limitation or devaluation of individual needs and abilities but rather as a guide for community-oriented, supportive, and loving collaboration.
¶ Start of the Rule?
Project Start (September 6, 2020)
¶ End of the Rule?
Project End