Some charities engage in trading as a way to raise funds or to further their objects. This guidance from the Charity Commission explains how a charity can trade itself, and when a trading subsidiary should be established.
The guidance also contains some basic information on the application of income and corporation tax on trading profits.
This guidance explains when and how charities may engage in trading. It is mainly about trading for the purpose of raising funds, rather than trading to carry out the charity's objects. It also explains when a separate trading company should be established to carry on such activity. Information about fundraising by means other than trading can be found in the Charity Commission's guidance Charities and fundraising (CC20).
The present guidance also contains some basic information on the application of income and corporation tax on trading profits, as this is a significant factor in determining the sort of organisational structures which should be adopted by charities to carry on a trade for fundraising purposes.
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 Trustees, trading and tax, how charities may lawfullt trade.pdf | 309.27 KB |