This guide explains when somebody or an organisation is considered connected or related, what types of transactions might be related party transactions and which

For anyone who thinks their reserves could be working harder. Many charities adopt a conservative attitude when it comes to reserves. Rather than viewing

If the activities you are planning do not fall within the exemptions and the activities are not fulfilling the primary purpose of the charity,

Primary purpose trading is trade carried out by a charity in the course of carrying out its main objects and is exempt from income

Trading is the exchange of goods or services for a fee. For tax, the law does not specifically define trading, but case law has

Gift Aid rules do not allow Gift Aid to be claimed on donated goods, only on monetary donations, which are grossed up by 25%.

Charities are entitled to mandatory rates relief of 80% of any business rates payable but it is only available when the charity is the

Relevant questions about a charity’s financial health and performance include: Does the charity have a diverse range of income sources? A charity that is

Charity status is a broad category rather than a type of business, and as such directly comparing two charities by their financial statements may

Charities have to prepare their accounts in accordance with a guide called the Statement of Recommended Practice (SORP), which in turn is based on

As the trading company is a separate legal entity it must register for VAT if its taxable supplies exceed the VAT registration threshold. Any

Charities only retain tax relief if their income is spent on their charitable purposes and tax exemptions are not available for non-charitable expenditure. Non-charitable

The Gift Aid distribution of profits from a trading subsidiary to the parent charity can only be made from distributable profits. This means that

So that a subsidiary does not pay tax, it must shed its taxable profits by tax-effective transfer to the charity by Gift Aid. However,

You can accept the risk; this may be after controls have been put in place to manage some risk, leaving a residual risk which

The Institute of Internal Auditors has described the stages of risk maturity for organisations, with risk enabled as the top level. At this level,

The main types of risks to consider are project, operational and strategic risks. These are different and require different documentation and management: Project risks