Charities

We provide a range of financial consultancy services to our charity clients. These services include advising on internal processes, right through to doing a whole review of the financial operations of the charity, with a view to providing advice and a project plan to increase efficiency and save costs for the charity in the longer term.

It is a fact that in recent times as donations have decreased, that charities are having to trim down in size or merge with other charities in order to survive. Through our vast experience of managing such circumstances for other charity clients we can advise on the legal and financial implications of taking such action.

Trustees are now under increasing responsibility for their actions. Trustees need to ensure that their knowledge on responsibility is fully up to date, and ensure that they have contemperanous evidence to support that they have fufilled their obligations Under the Trustee Act 2000. It is important that trustees exercise sufficient "duty of care" in the provision of their services, and this is very important in relation to the use of assets of a charity.

We can provide guidance services to clients in this complex area, and will also advice on the delegation of these responsibilities to authorised agents.

In general, charities are not taxable on income that arises from primary purpose trading.

Primary Purpose trading is defined as trading which contributes directly to one or more of the objects of the charity as set out in the Charity trust deed.

Under charity law, it is a requirement that any trading which carries a risk to the underlying assets of the charity should be undertaken by a separate subsdiary company.

A trading subsidiary would be subject to corporation tax on its profits (similar to a "for profit" trading company), but this can be eliminated by the making of a "gift aid" payment of the amount of profits to the charity. The "gift aid" payment should be made within 9 months of the year end of the trading subsidiary.

Charities are responsible (more specifically the trustees are responsible) for the stewardship and management of resources donated and earned from trading activities. As a result of this responsibility the Charities Commission requires all but the most smallest of charities to be subject to an external annual review of the operations.

At MG Group we realise that charities need to receive value for money from the audit process. We set up all charity audit assignments in a consistent manner so that we provide trustees with a report on our findings. Our audit programme covers so much more than the minimum required by law, and so it is a true value added service to our charity clients.

To find out further information about our audit and assurance services, please get in touch with us, and we will be delighted to explain our services to you.

We have recently been involved in a number of mergers and acquisitions for our charity clients. This has been brought about due to the difficult economic conditions that the sector is currently facing in the UK.

We can provide you with a highly confidential service in reviewing your operations and seeing if the charity could merge or acquire any charity (or be a good candidate to be taken over by another existing charity).

Please get in touch with Gavin Fernandes to discuss your situation, in complete confidence.

A Charity is a special type of trust, and in the UK can only be constituted with a special trust instrument.

Further, in order to be recognised as a charity in the eyes of HMRC and with the charity regulator in the UK (the Charities Commission), it is necessary for the charity to meet certain requirements. We can advise on Charity Commission regulations and ensuring that your charity is set up in an efficient manner.

In recent times there have been many entities wishing to set up as a charitable enterprise, and so the rules have become more stingent. We can advise on the requirements needed to be registered as a charity.

Please get in touch with us regarding any requirements in this area, we would be delighted to assist.

A Charity needs to ensure that it remains within the requirements of charity law. If the charity is set up as a company structure, then it also needs to comply with Companies Act requirements.

We can advise you on the requirements applicable to your charity, including whether you require an independent examination of the accounts, or whether a statutory audit is required.

We can also advise on financial matters in connection with the charity, including ensuring that the trustees comply with charities act requirements.