A charity is a voluntary association of volunteers that is able to make a profit by selling donated goods and services.
But charities have an obligation to ensure the quality of their products and services is high.
For a charitable organisation, the value of a service or product is often directly related to the time and effort that has been put into it.
This means that charities must be accountable to the value they are putting into their work.
A charity’s contribution is usually paid into a separate account that is managed by the organisation.
However, charity trustees, or the non-profit body that makes these decisions, can also choose to fund the activities of the charity.
There are a number of charities that are exempt from paying tax on charitable donations, but they are subject to certain conditions.
Most charities are exempt if they are: The charity has no assets that would normally be required to pay income tax on their profits