Trusted guidance on charity operations and contracts
Legal constraints impact on charities in their dealings in areas such as fundraising, contracts with third parties, pensions and trading activities.
What are the relevant legal and tax considerations for charity operations?
Charities benefit from preferential tax treatment. This can be at risk if the charity's operations or structures are inappropriate and the trustees are at risk of being held personally liable, particularly if conflicts of interest are not properly managed. Compliance with charity laws can take time, so forward planning is important.
As with any enterprise, tax has an inevitable impact - the generalisation that charities are tax-exempt is far from accurate.
Specific areas of advice include:
- Charity law compliance;
- Contracts and Intellectual Property;
- Fundraising and Trading;
- Outsourcing of Public Services; and
- Shared Services.
Our solicitors' practical legal advice for all types of charity contracts
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.
Charities Act restrictions on charity contracts
Some charity contracts are different from contracts entered into by commercial organisations. The Charities Acts impose extra restrictions on contracts, for example tax and trading rules relating to:
- Fundraising with commercial partners;
- Sponsorship contracts;
- Sub-contracts and outsourcing;
- Trading activities;
- Registering and protecting intellectual property rights; and
- Social media management.
Wrigleys are experienced charity advisers and will help point out the rules and restrictions whilst adopting a practical and commercial approach to ensure your organisation is not held up with plans to raise, save or protect valuable money and resources.
For further information, please feel free to get in touch.
‘My experience of working with Wrigleys was they provided a timely, measured response to questions that were explained for me clearly. They helped me consider the appropriate response to some significant challenges and helped me balance competing risks.’
Legal 500 (2024)
of Malcolm Lynch 'I have been amazed at Malcolm's ability to grasp complexity, advise wisely and communicate succinctly and clearly.'
Chambers and Partners (2024)
Charities and Social Economy
