Commission updates guidance on trading

The Charity Commission has published new guidance for charities setting up trading arms or subsidiary companies to raise funds.

Trustees, trade and tax – how charities may lawfully trade, released yesterday, explains when and how charities may raise funds through commercial enterprises, and offers an explanation of the taxation of trading profits. It also examines the difference between their legal obligations and best practice.

Speaking at an open meeting for social enterprises and Community Interest Companies in London yesterday, Dame Suzi Leather, chair of the commission, said the document was written after a call from the Better Regulation Commission for clearer guidance.

"We do hear from some charities that it can seem like a minefield - particularly when trying to negotiate not only the implications under charity law, but also deal with the thresholds at which it becomes necessary to establish a subsidiary," she said.

The guidance is available online at www.charitycommission.gov.uk/publications.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus