In challenging times, charities will be exploring every possible means of raising money. Trustees need to be careful that these fundraising efforts do not inadvertently expose the charity to an unnecessary tax liability. How do trustees make sure they are getting it right?

Trustees will need to think about their powers, the business case, and tax. Check the governing documents and see what you can do – and look out for any clauses that talk about the ability to trade. Don’t stop planning if the governing document appears to prevent you carrying out the plan, but remember the restriction.