Increasing a charity’s income by charitable trading: a treasurer’s point of view

, ,

Your charity has identified that it needs to increase its income but is not sure how it is possible.

You have considered a number of income streams. You’ve applied for grants, you’ve had donations from a few local businesses and you run a really successful bingo night on the first Friday in every month, but still your income is not enough to cover the ongoing maintenance costs of the ageing building.

The building is located in the heart of the village on a popular route for walkers in the area, and at one of your board meetings an idea starts to develop – what about opening a café in the annex which is currently rarely used? The idea starts with selling teas, coffee and a few cakes on a Saturday but quickly snowballs with suggestions of ‘why only a Saturday?’, ‘what about bacon sandwiches on a morning?’ and ‘we could do salads for lunch!’.

After the initial enthusiasm for the idea, thoughts turn to the practicalities of how the charity trustees can make their ambition of opening a café a reality, and what legal issues they need to consider. You start looking at the rules governing charity trading and quickly discover that as a charity, the ability to trade is limited, because making money is not in itself a charitable purpose, even if it is done to support the charitable activities of the organisation. To carry out trading activities you will need to set up a trading subsidiary. This is a separate company that is usually owned by the charity, and donates the bulk of its profits to the charity via gift aid.

But there are still so many questions:

  • What trading can charities do?
  • When must a charity set up a trading subsidiary?
  • How can a trading subsidiary pay funds to its parent charity?

Fortunately, you know where to look to find these answers. The following websites are particularly helpful:

Now that you have all the information you need, it’s time to talk to the charity’s accountant. They have lots of experience of working with voluntary sector groups and you’re confident they will be able to give her the expert help you’re looking for.

The accountant proves invaluable and the trustees can now open that café they dreamed of safe in the knowledge that they are fully compliant with all legal requirements.

 

If you want to find out more about the issues charities need to consider if they plan to carry out any trading, come along to our next Treasurer’s Network Meeting on 13 October.  These network meetings are for both new and experienced treasurers of voluntary community and social enterprise sector organisations across North Yorkshire.

Making biscuits contributed to my wellbeing

, ,

Bake Off 2022 is on our screens and this week is the ever-popular Biscuit Week.

Our development officer, Andy Ryland, was inspired by his baking experiences to share how baking biscuits can generate feelings of positive wellbeing.

Here’s what he had to say:

“I am not sure what prompted me to consider making macaroon biscuits. It may have been fond memories of the ones my mum used to make for family teas. It might even be the taste of the small ones you are sometimes given with a coffee after a meal in a restaurant, or perhaps just the fact that they are a delicious biscuit I can enjoy.

Anyhow, a few weeks ago I looked up an online recipe and even for someone like me, who has never made biscuits before, the recipe looked surprisingly simple.

My first attempt was, surprisingly, quite a success and I have gone on to make more batches and even branch out to making variations to the recipe (all very adventurous!).

So how has the making of biscuits helped my wellbeing?

Through reflecting on this, I have realised that the process ticks many of the boxes of what is called the Five Ways to Wellbeing.

  • Being in the Moment
  • Learning something new
  • Giving to others
  • Social connection
  • Physical exercise

Being in the moment is very much about concentrating on what one is doing. So worries or negative thoughts are replaced by thoughts relating to the activity in hand – such as following the recipe.

For me, making biscuits has been about acquiring a new skill and this has been immensely satisfying.

The creation of something attractive to give to friends or colleagues is also a very satisfying experience and gives pleasure to the soul. In turn, this creates the opportunity for social connection.

Regrettably, there is only a limited amount of physical exercise involved in the process of making the biscuit (although I could replace my electric whisk with a hand whisk). However, it has distracted me from watching the TV, which I think is a good thing.

If you are like me, you may not be an experienced cook, but if you want to experience the joy of a little creative baking, do have a go. Perhaps you could find something that trigger positives memories from your childhood or another memorable moment.”

By Andy Ryland

Please send us your stories and pictures of your bakes, and why the recipe evokes positive memories for you by emailing info@communityfirstyorkshire.org.uk. We’d love to share them on our social media channels.

We have a wide range of resources on our website to help your mental health and wellbeing on our VCSE Wellbeing Hub toolkit.