A charity does not make any profit.

The point being that, approximately, for every £10 that they get through donations or any other source, £9 goes to costs and £1 to actual charitable activities. Personally I would not donate to such a charity.

How does the fact that RPi produces a physical product factor into this? If I contribute money to a charity that distributes that money directly to people in need, then I expect a high portion of that money to go to charity, but I don’t know that that is a fair expectation when most people “donate” to RPi by buying a low margin physical product. It’s not a pure charitable contribution to buy a Pi. But maybe I don’t understand how the costs are broken out between the foundation and RPi Trading.

> for every £10 that they get through donations or any other source, £9 goes to costs

From the accounts I linked they received a bit over £3.5m in donations that year (they're listed in two different places one around £400k the other around £3.1m I don't know why they're accounted differently), spending £7.8m on charitable activities that same year. So in a sense they're managing to double their donations via their profitable trading to generate money for charitable activity spending.