2009/9/14 Andrew Turvey <andrewrturvey(a)googlemail.com>om>:
Re-reading my original email and the reaction to it I
should clarify:
----- "Andrew Turvey" <andrewrturvey(a)googlemail.com> wrote:
The plan is to sell them at cost price to
members only.
"Cost price" isn't a restriction from the Foundation - their main
restriction is that it must be either sold only to members or given away for
free as publicity. It's up to us what price we sell them at, although if we
make significant profit margins there are certain tax and charity
consequences which may be better avoiding. Also I don't want members to get
the impression we're profiteering. Thinking about it again, cost+20% - which
I understand is what cafepress do - sounds about right to cover waste, stock
etc.
Ok, that's better, now we're talking (20% sounds fine to me, 10% might
even be enough - depends on the details). The tax thresholds are in
terms of turnover, rather than profit. For a small charity the small
trade exemption covers us up to £5000 pa. turnover. If we go over that
(which is unlikely with t-shirts and things, although the calendar
idea could be bigger), we can avoid paying tax by forming a trading
subsidiary and having it donate the profits to the charity, it then
giftaids them so they are tax deductible reducing taxable profits to
zero. (This is all entirely legal, the HMRC website even says how to
do it.)
I don't think t-shirts will be a large fundraiser, but we have to call
it a fundraiser in order for it to be legal.