What is the advantage of becoming a charity?

[cassa333]

If a group were affiliated to a particular place and spacific people ie: children who use a named hospital ward why would they want to get charity status?

If you are a small group and you are short of funds and you have to fundraise to get the money to become charity staus then how can you hope to afford the added expences the staus entails?

Is there some advantage I don't know about?

Thanks

[woofgang]

simples.....TAX and VAT relief. secondarily quite a few organisations and idividuals will only give to registered charities to avoid being ripped off

[cassa333]

How does tax and vat reliefe work for a charity barely making ends meet though? I thought that Vat relief was for medical equipment and not on other purchases!

I understand about some people only giving to registered charities but honestly the amount that is generated by many small charities is relativly small. Especialy if you overlap other related charities.

[fredpuli47]

The charities get back the income tax which the donors pay. That increases their revenue considerably. That's why they always ask you to tick a box saying you are a UK tax-payer when you send them money by standing order or direct debit.

[cassa333]

That's true but for small charities who only have volunteers it is very time consuming and unless you get big donations from a few people it simply isn't practical.

[Buenchico]

From the Charity Commission's website:
"Many people starting a charity assume they need to register with us, or think that a registered charity number is necessary to carry out voluntary work. However, in the UK today there are probably over 500,000 voluntary organisations but fewer than 180,000 of these are registered charities.

Applying to register a charity is a complex process, and we don't want to waste your time if it's not necessary for you to do so"

Source:
http://www.charity-co...of_charity_index.aspx

The policy of the Charity Commission is not to register charities with an annual income of less than £5000. However the Commission still provides advice to such charities:
http://www.charity-co..._small_charities.aspx
(If the income rises above £5000p.a. the relevant link from that page provides further information).

Chris

[mike11111]

Public schools such as Eton are registered charities! Can't remember the details now, but one of the four qualifying requirements for charitable status under the Charities Act of the early 17C, was to be an institution primarily devoted to the advancement of education, so I suppose Eton complies with the letter of the legislation, if not the spirit.