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Charities can carry out trading activities directly related to their charitable aims and objectives, and/or can trade as a way of raising money provided it is on a small scale and presents no significant risk to the charity’s assets. Profits from trading activities may be taxable but there are some exemptions, including:-
If your group is not exempt, you could consider conducting all or part of your activity through a subsidiary trading company and transfer some or all profits of the company back to the charity as a donation, in which case the charity will then be able to re-claim tax. Other Community Toolkit Topics to look at:Holding Raffles and Prize Draws....best practice guidelines for holding raffles and prize drawsFundraising Events....how to plan and manage a fundraising eventTrading....how to generate income from tradingCharitable StatusThis section looks at the issues surrounding becoming a charity Further sources of information
For more information visit your
local support organisation |
