Charities & Their Non-Charitable Trading Subsidiaries - An Introductory Guide
Whilst charities can carry out limited types of trading directly, there are strategic, practical and legal reasons why using a trading subsidiary may be desirable or an absolute must.
Charity Commission scrutiny of charities only ever seems to increase so the pressure on charities to get it right first time has never been greater.
In light of the Commission's 2019 guidance ‘Charities with a connection to a non-charity’ and its changing approach to intervention and serious incident reporting, now is the time to get up to speed with the legal and governance rules as well as the expectations of the regulator, so as to protect your client from financial and reputational risk.
This new full day course covers trading and the life-cycle of the relationship between a charity and their trading subsidiary from set up and effective management, through to managing the risks around a subsidiary in distress and its ultimate closure.
If you are relatively new to advising on trading within the charity sector or are keen for a refresher, then this course will provide you with practical insight, real-life examples and the ability to recognise and explore key issues when supporting charities and their non-charitable trading subsidiaries.
What You Will Learn
This course will cover the following:
- The drivers for charities to trade and the current regulatory environment
- Trading by charities - what is permitted?
- Identifying common (and less common) triggers for using a trading subsidiary
- Setting up a trading subsidiary and the considerations around legal structure, governance, conflicts of interest management and the first board meeting
- How to build in controls to manage the charity/subsidiary relationship effectively
- Recognising potential issues within charity/subsidiary transactions including funding, donations, guarantees, property and asset transfers, reorganisations and mergers
- Advising when things go wrong - common pitfalls, serious incident reporting, the risks surrounding complex group structures and subsidiaries in distress
- Closure of a trading subsidiary
- Lessons learned - an overview of key regulatory case reports from the Charity Commission and what they mean for charities
9:30am - 5:15pm
Please let us know if you wish to be notified when new dates are added for this programme