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Case studies

Here is just a sample of some recent work we have undertaken in the Charities sector:

Improper Funding Relationships With Subsidiaries

BDO advised a charity that had loaned a sum of money to a trading subsidiary. The trading subsidiary, a supplier of fishing tackle, was going insolvent. The trustees of the charity were also directors of the trading subsidiary and were faced with the prospect of being directors of an insolvent company.

Our charity team met with the Charities Commission on behalf of the trustees. By presenting a case that demonstrated that the money loaned to the trading subsidiary was reasonable, the Charity Commission allowed our client to sell the subsidiary as a going concern.

Regularising Licensing Arrangements

A large charity client with a strong brand was using its logo to generate income. After conducting the audit it emerged that this activity was a breach of the rules, as it constituted trading activity.

Having identified this potential threat to their income, the charity team moved swiftly to set up a group structure and legitimise the operation.
 

 

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