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

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

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