Case study
One of our clients in the publishing and media sectors created an animal welfare charity and invited LMG to help manage its financial affairs.
At the initial stage we gave Trustees advice on:
- general accounting principles, showing how charities must keep their books including how to classify income, a crucial part of financial management for charities as all income has to be analysed depending on its source and use
- we also discussed with the Trustees the possibility of setting up a trading subsidiary for tax and VAT reasons to undertake certain of its fund-raising activities, such as selling soft-toy bears
- we also assisted with the registration of the charity with HM Revenue & Customs in order to claim Gift Aid relief on donations
- During our audit of the first year's accounts, we identified that the charity was able to reclaim over £20,000 in Gift Aid on a deal to donate funds generated from publishing rights, a claim which the Trustees had not previously identified.