A group of artists (full disclosure one is my wife) are running a small 'pop up' shop. The instigators behind getting the venture going were a local charity.
The shop is retaining 10% of sales and donating this to the charity.
The initial venture is only going on for a couple of months - however, if they intend to carry on, what legal entity would be best suited?
Is it possible, for example, to form a CIC that is somehow mandated to 'donate' its surplus funds to a particular charity?
I suppose a normal limited company would work, but it would need to be possible to ensure that the 'donation' to this charity was able to be treated as cost of sales so it was not taxable.
There could be future grant applications etc, I suppose, and these would probably at a minimum require CIC status.
I don't think the charity themselves wish to create a trading subsidiary.
The art group is fairly independent of the charity.