Do charities pay lower rates?

[tali1]

Do charities pay lower rates for advertising ,renting property and other goods/services that they use?

[Buenchico]

You certainly get my vote for the award of AB's Most Enquiring Mind, Tali1! ;-)

Unless they happen to have a particularly benevolent landlord, charities pay full commercial rents for all of their premises.

Registered charities automatically get 80% off their business rates. Councils may extend this relief, up to 100%.

Advertising is normally at commercial rates.

Charities pay VAT like any other business, but there is an exemption in relation to certain fundraising events.

Chris

[Richard1966]

Except for business rates their is little advantage to being a charity.

[flyciderman]

Cheap staff in the shop?

[Twenty20]

So, how are all these charities able to have High Street shops if they pay a commercial rent? Most of these shops sell stuff for pence. How do they make enough money to cover the rent let alone the electricity, wages etc etc?

There's loads of these charity shops and I can't understand how they make money for the charity?

[flyciderman]

Well the stock is free, but you have a good point.

I somtimes wonder about how money realy gets to the cause and how much is taken up with administration.

I think some years ago Oxfam have expensive London offices.

[bednobs]

charity shops HAVE to be profitable, or the charities cmmission will ask them to shut down

[Richard1966]

Most Charity shops have a reasonable income. Combine this with very low staffing costs no business rates and usually because they are on 6 month or maximum 12 month leases on very favorable terms, because they tend to take over otherwise empty shops and they do ok.