Trading & trading subsidiaries

We can help you structure your trading operations. We’ll look at the different activities and work out if the more commercial aspects should be carved out and run separately from the core charitable activities.

This likely involves an investment of charitable resources, so you’ll need advice on investment duties, tax implications and making sure it’s structured within charity law rules and restrictions.

We regularly set up trading subsidiaries where charities are undertaking a new activity. Perhaps you are carrying out more fundraising and letting corporate partners use your name and logo to advertise their relationship with you. A trading subsidiary can allow you to manage this income in a tax effective way – meaning more should ultimately reach your beneficiaries.

If you already have a trading subsidiary and it’s been a while since it was established, take a look at our health check. We’ll guide you through a self-assessment of your current arrangements against the Charity Commission’s checklist in its guidance for charities with a connection to a non-charity.