It is a long perpetuated myth that charities do not pay tax and one that has come to the fore recently with an announcement by HMRC that they are going to be writing to over 3000 Charities, primarily those with the largest gift aid claims to complete a tax return notwithstanding that they may have been previously exempt.It will be in the form of a Corporation Tax return no matter whether their charity is a lmited company, a CIC or unincorporated so if you receive one of these forms you should contact your accountant straight away.The returns must be submitted even if there is no tax due.
Whether it is Brexit or the mixed messages about the economy, now is a good time for all charities to be asking themselves as to where they stand. In no particular order these are questions trustees and the executive team should be asking themselves.
As 2019 approaches, it is a good time to think about some New Year Resolutions for your charity. It is difficult to plan a long-term strategy with the current Brexit shambles yet think long-term you must.Here are some thoughts of things that both the trustees and management team need to consider
Following a recent conversation with a local charity who had been told by a funder something I was not sure about, I decided to revisit my thoughts on the levels of Charity Reserves. To do so, I re-read CC19 (Charity Reserves: Building Resiliance) to see if I could gain some insights. The first thing I wanted to remind myself of was whether there was any recommendation as to the level of reserves that should be held. As I thought;no recommendation is made. What the publication did do however, was to remind me of the processes that charity trustees have to go through to decide on the correct level for them and that no two charities are the same.