A guide to third sector trading - WCVA

It’s an idea, but is it business? A guide to third sector trading
1: Getting
started
2: First steps 3: Business
planning
4: Legal and
governance
5: Funding
and
resourcing
6: Financial
controls
7: Managing
growth
8: Management
and
governance
9: Social
enterprise
10: Sources
of support
• Charity Commission approval: The attitude of the Charity
Commission to requests to change the objects clause of the
memorandum and articles of association cannot be predicted.
They will certainly need evidence that the service is needed
and the charity has the capacity to deliver the extended service
without adversely affecting its achievement of its other objects.
The new activity must of course also be recognised as charitable.
But how does this promote enterprise? In the real world where
‘social enterprise’ is flavour of the month, many third sector
entrepreneurs will, and should be, motivated by the promise
of independence from the control of grant finders and public
bodies. The last thing they want is the restrictions of the Charity
Commission and the fear that they will lose money or privilege
because they have fallen foul of the bureaucratic rules. If this is the
case they may choose to lose the tax advantages of Gift Aid and
the other benefits of charity status and establish a Community
Interest Company (see section 4.2).
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