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

Risk registers should draw together the key information for the highest priority risks: Clear identification of the risk Consequences of that risk becoming a

The two contributing factors are likelihood and impact. A possible approach would be that likelihood be scored 1-5 from very unlikely, unlikely, possible, likely,

Step 1 understand your funds, the split between restricted, unrestricted, endowment etc Step 2 review future income streams, identifying which streams are continuing into

Free reserves are unrestricted funds available for spending. Because charities can raise funds that are restricted for specific uses, or have endowments or designated

Charities might hold reserves for the following reasons: ● to fund working capital● to fund unexpected expenditure, for example when projects overrun or unplanned

Organisations are required to: 1. be aware of who their related parties are 2. actively manage any transactions with them 3. disclose any related

The annual financial statements have to include a note to the accounts for disclosure of any related party transactions. If there are no related

A related party transaction may be on terms that are beneficial to the charity, or they may be on normal terms, known as arm’s

A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is charged, including: Purchases

Related party is a term used by The Charities Statement of Recommended Practice that combines the requirements of charity law, company law and the

Cultural fit; perhaps the most significant barrier to successful merger is lack of “cultural fit”. Many charities rely on the goodwill of their stakeholders

The merger process can usually be broken down into five steps: 1. Feasibility study; undertaken to establish whether the merger is likely to work