First 318 words of the document:
Section P1 (c)
Charities and voluntary organizations are found to help people in need. Many staff in charity shops
are volunteers and do not get paid. Charities are also called `notforprofit' organizations because
their main aim is to provide a service for those in need. Many charity shops ask for things that
people no longer want such as household appliances, clothes, books and much more. The charity
then sells these products and makes all of the money to help people.
They aim to make a surplus every year, after necessary expenses, which is used to support and
promote their own particular cause.
Income earned by charities undertaking primary purpose of ancillary trading will be exempt
from Income Tax provided the income is applied for charitable purposes.
Charities are not liable to pay Corporation Tax which is charged on clubs, societies and
Exemptions from Inheritance Tax apply on gifts and undervalue transfers to charities.
Stamp duty does not apply on transfers or conveyances to a charity.
Gains accrued when charities apply assets for charitable purposes are exempt from Capital
Compulsory Registration as a Charity:
Under the Charities Act of 1993, organizations with exclusively charitable purposes and an income
of over £1,000 must register as a charity.
Advice is often given from the government.
Many of the employees are voluntary meaning you don't have to pay wages.
The company is helping the people in need.
There are limitations on trading.
A financial report has to be given every year.
Nearly everything sold is monitored, to make sure the money is being given to the right
British Heart Foundation, Oxfam, Cancer Research UK, Cats Protection, Save the Forests