15th July 2008, 02:32 PM
Redeart I think that you have the snake by the tail but I dont think that you can get enough education to understand what an educational charity is though
I have tried following this google from the
Joint Committee on the Draft Charities Bill
with the interpretation of
I am saving the chasing of this for a really sunning day whilst on holiday to pursue. I have seen the gift aid device used somewhere in the midlands but there is nothing here that says that they cannot set up a Tescos if they want to. Presumably Tescos have other methods to stop them
Quote:quote: a bit like Oxfam opening a shop the size of your average Tesco.unfortunately the Charities Act is so new that this issue of what those charities are doing and what they are up to is more than likely alright
I have tried following this google from the
Joint Committee on the Draft Charities Bill
Quote:quote:There are, currently, three main types of trading by charities:
a) Primary purpose trading - i.e., trading in the course of actually carrying out the primary purpose of the charity: for example, charging for admission to an exhibition by a charitable art gallery;
b) Ancillary trading - i.e., trading linked to and carried out at the same time as carrying out the primary purpose of a charity: for example, sales from a bar run by a theatre charity for members of the audience;
c) Non-primary purpose trading - i.e., trading with the sole or main aim of raising funds: for example, some charity shops or charity mail order catalogues.
with the interpretation of
Quote:quote: In regard to (i) primary purpose trading and (ii) ancillary trading, charities both have the power to trade and are exempt from income tax on any profits from trading.
In regard to (iii) non-primary purpose trading, the situation is more complex. If the income from this type of trading is small or incidental - i.e., ?5,000 or less than 25% of the charity's total income (up to a maximum of ?50,000) - then the charity both has the power to trade and is exempt from income tax on trading profits. However, a charity can get around this restriction by setting up a separate trading company to carry on trading; the trading company can then transfer its profits back to the charity under the Gift Aid scheme, so that no tax is paid on them. There are some disadvantages to doing this: mainly that it results in additional paperwork.
I am saving the chasing of this for a really sunning day whilst on holiday to pursue. I have seen the gift aid device used somewhere in the midlands but there is nothing here that says that they cannot set up a Tescos if they want to. Presumably Tescos have other methods to stop them