Charities & Trading - Exploring the Legal & Practical Issues

Introduction

Whilst most charities are permitted to undertake a limited amount of trading that is not directly linked to their purposes, this is subject to a financial threshold and certain considerations.

It is important to carefully assess any proposed trading activity to ensure that the charity can undertake it and that doing so is in the charity’s best interests. .

If a charity undertakes trading activity that is outside the permitted parameters, they could be liable to risks including potential tax liabilities and/or breach of trust. .

Presented by expert speaker Kirsteen Hook, this webinar will look at what is meant by trading, exploring the 4 categories of trading for charities and whether they can be undertaken within a charity. Consideration will also be given to when a trading subsidiary may be required, and the practical steps they may need to take in relation to trading activities.

What You Will Learn

This webinar will cover the following: .

• A brief introduction to what is meant by trading
• Exploring the 4 categories of trading:
• Primary purpose trading
• Ancillary purpose trading
• Beneficiary trading
• Non-primary purpose trading
• Considering whether charities can trade and circumstances that may impact the decision as to whether it can be undertaken within the charity
• The small-scale trading exemption
• Sale of goods in a charity shop
• Circumstances in which a charity may need a trading subsidiary
• How to form a trading subsidiary
• How to manage arrangements between the charity and trading subsidiary
• Overview of Gift Aid
• The Charity Commission’s guidance on trading

This webinar was recorded on 11th April 2024