Hi All,
I have been approached by a non-profit making organisation to prepare an independant examination of their accounts. They make about £10k t/o and around £3k net profit which is invested back into the organistion. They are basically a community group who raise funds for a specific community event, record expenses incurred for that event and the surplus is used for following events.
The organisation is not registered as a charity or company and nothing official has been published. Is it OK for organisations such as this to exist? I would have thought that some "official" status would be needed.
Your comments?
Replies (4)
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Soundslike
they should register as a charity as income is >£5k. If I were you, I would ask to see the constitution or other governing document before going further to see if it sheds any light.
And as...
... Unincorporated Associations are liable for corporation tax on profits from their trading, and as yours seems to be trading profitably, there may be some tax to pay