I attended a charity fundraising webinar hosted by Natalie Barbosa and Sayer Vincent’s Helen Elliott. This webinar provided great insight on the legal and tax implications in relation to various types of corporate fundraising. Here are a few key points that I took away from this session:
- There are different models of commercial partnership arrangements which can exist between charities and commercial organisations. It is important to understand which model best suits the arrangement between the parties as the level of risk to an organisation will be dependent on the type of arrangement the parties are entering into.
- These models greatly differ from being simple arrangements that do not even require a contract to more formal arrangements which are regulated under fundraising legislation and must comply with the Fundraising Code.
- Corporation tax/income tax is exempt for most charities’ income/gains. Trading income can be tax-exempt for a charity if it relates to the primary purpose of trading, beneficiary trading or ancillary trading (or such other exemptions), otherwise trading income is taxable. It can be difficult to make this distinction.
- Charities should consider the benefit of wholly-owned trading subsidiaries, which can handle the taxable trading.
- There will be a review of the Fundraising Code in 2022 which may have a focus on digital technologies that have become more prevalent since the Covid-19 pandemic.
- Moving forward, more charities are (or will be) willing to accept crypto-donations – but there is still some scepticism in this area.
Anthony Collins Solicitors will be hosting a number of different sessions over the coming months which will be useful for many charitable organisations, in particular, a green drafting session. If you have any questions regarding corporate fundraising please do contact Natalie Barbosa or another member of our charity team.