Hire of Rooms to or by Charities
Hire of Rooms to or by Charities
Hire of Rooms to or by Charities is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.
Frequently Asked Questions
We let groups use our charity's hall. What should the hire agreement pin down?
The essentials that prevent disputes: dates and times with access arrangements, the permitted use and numbers, fees and deposits, responsibility for damage and clearing up, insurance expectations, cancellation terms and any house rules such as alcohol, noise or safeguarding requirements where children attend. Just as important is what the agreement avoids: exclusive ongoing occupation that could look like a tenancy. The Hire From A Charity agreement here is built as a licence for exactly that reason.
Our charity hires rooms from others. Why not just sign their form?
Because their form protects them. Hiring as a charity, check the terms cover what you need: the right to cancel if your event folds, no open-ended liability beyond your insurance, clarity on what equipment and facilities are included and no terms conflicting with your policies, safeguarding rules where beneficiaries attend, for instance. The Hire To A Charity agreement here gives you a starting draft that protects the hiring charity, useful as your proposal or your checklist against theirs.
Does regularly hiring out our hall count as trading, and could it affect our charity status or tax?
It can, so keep it in view rather than fear it. Letting surplus space is often investment-like income or falls within exemptions, and small-scale non-primary purpose trading is exempt from corporation tax while its turnover stays within the higher of 8,000 pounds or 25 percent of the charity's income, capped at 80,000 pounds. Persistent commercial hiring beyond that can mean tax, which some charities route through a trading subsidiary. Track hire income separately and take advice as it grows.