Many charities or non-profit making organisations, such as schools, museums or hospitals, operate as businesses and will therefore often require advice from our commercial team, as well as from our charity law team.

In the case of a charitable company, for example, its management must consider and comply with the provisions of the Companies Acts, as well as the Charities Acts. Trustees may also need advice regarding the licensing of a charity's trademark and other intellectual property issues.

Fundraising activities may involve trading activities and trustees must always take care to ensure that tax liabilities are not unwittingly incurred. Contrary to popular belief, there is no general exemption from tax for charities and all fundraising activities must be correctly structured in order to avoid incurring tax charges.

A charity's trading activities are often carried out through a non-charitable subsidiary -- often a limited company -- and we will need information on its establishment and subsequent operation. In particular, the relationship between the charity and its subsidiary must be carefully structured and monitored to ensure that charity law obligations are met.

As part of its business activities, a charity will undoubtedly enter into contractual arrangements. Many charities employ staff and, like every other employer, must comply with the vast and ever-changing array of employment legislation. Other contractual arrangements may range from taking out a lease on premises occupied by the charity, to agreements with suppliers of office equipment and services.

Unlike other businesses, however, charities must always remember their overriding duty is to protect their charitable assets and if the trustees are to avoid personal liability, they must always be ready to justify their decisions in commercial terms.

This duty is also paramount when disputes arise in connection with a charity's commercial activities. We specialise in providing constructive advice, taking into account all relevant issues, including the particular constraints which apply in situations involving charities.