Updated guidance for
charities' trading operations - Regulator revises guidance
and helps charities optimise their trading operations
CHARITY COMMISSION
News Release (PR 15/07) issued by The Government News Network on 23
May 2007
Charities receive
a significant proportion of their income from their trading arms.
The Charity Commission has today published its revised guidance on
charities and trading to help charities avoid the potential risks
of trading and get the most out of their trading activities, while
also complying with their legal and fiscal requirements.
Trustees, trade and tax - how charities may lawfully trade is
available on the Commission's website at http://www.charitycommission.gov.uk.
Developed in response to the Better Regulation Commission's
call for clear guidance on the subject, and with input from HMRC
and representatives from key charities, the guidance provides
clear answers to the questions most commonly asked by charities.
The guidance reflects the latest tax and VAT position and also
sets out a more flexible policy for funding and investing in
trading companies.
The Commission's Chief Executive, Andrew Hind, said:
"Trading can present real risks for charities, but it also
offers significant rewards. We've produced this guidance to
try and make it as easy as possible for charities looking to
trade, or to set up a separate trading subsidiary, to avoid the
pitfalls and reap those rewards. Talking to charities that are
already trading successfully has helped us make sure the guidance
gives a practical approach to the real-life issues that charities
might face and to help make sure that charities get the structure
of their trading operations right."
Ends.
Notes to Editors
1. The Charity Commission is the independent regulator for
charitable activity in England and Wales. See http://www.charitycommission.gov.uk
for further information or call our contact centre on 0845 300
0218.
2. The Better Regulation Commission called for clearer
guidance on the subject of trading in its report Better Regulation
for a Civil Society.
For further information please contact: Chris Kiggell on 020 7674 2332