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Contracts are at the heart of every charity. Whether it is an employment contract, property contract, a contract for the supply of goods or services, a grant contract or a licence of a trademark.
Some charity contracts are different from contracts entered into by commercial organisations. The Charities Acts impose restrictions on contracts which charities enter into with commercial partners for fundraising purposes. These must follow a particular format.
Sponsorship contracts may require careful handling for both charity taxation and charity trading reasons.
Certain property contracts require either Charity Commission consent or the following of procedures as set out in the Charities Act 1993. Charities delivering services may often find themselves appointing sub-contractors who require contracts which follow the principal contract with the charity.