Charities or Profit Making Businesses?

[Brisheff]

What you are about to read is a fictional example, that I hope you will consider carefully. The example is followed by my question, which I hope you can answer.

Example; "A lady knocked on my door one day and said she was from a local charity that helped homeless people rehouse. She asked me if I had anything to donate to help the poor homeless people. I searched around my home and eventually decided to give her an unused kitchen table. The lady thanked me and after putting the table in the rear of her van she drove away. Two days later I was passing by a shop window and noticed the table I had donated to charity. There was a price tag on the table asking for 25 pounds...."

My question; "How can a registered charity call itself charitable if it sells the goods that people have donated free of charge thinking, as I had done when I donated my table, the goods will be "given free of charge" to the poor homeless people, surely by selling the goods the registered charity nolonger is charitable, but as become a profit making business?

[toastking]

It depends on what the money is being spent on. If it is going towards paying for shelters and more suitable food items etc then I would be happy for mine to be sold. I do think however that the majority of donations made by people are essentially self serving, they need to get rid of something, think it makes them look charitable so they dump their old stuff on a charity shop, all round winners esp when people then pick up cheap items.

Pessimistic??? Maybe, but I think it should not be frowned upon, as long as the money is going towards the homeless or the costs of collecting for the homeless.

[rickyhelmore]

Hi Brian,

I was too in somewhat same condition below. That was the major thing that made me think many times to donate further in my life. Now I test first that whether the charity organization is genuine or not, then only i decide to donate.

[PewPew]

Some charities, such as Cancer Research UK, sell things to fund their research and development - but I do not understand why a homeless charity would need to sell things, except (as mentioned above) to develop new shelters.

[unitedbusiness]

What you are about to read is a fictional example, that I hope you will consider carefully. The example is followed by my question, which I hope you can answer.

Example; "A lady knocked on my door one day and said she was from a local charity that helped homeless people rehouse. She asked me if I had anything to donate to help the poor homeless people. I searched around my home and eventually decided to give her an unused kitchen table. The lady thanked me and after putting the table in the rear of her van she drove away. Two days later I was passing by a shop window and noticed the table I had donated to charity. There was a price tag on the table asking for 25 pounds...."

My question; "How can a registered charity call itself charitable if it sells the goods that people have donated free of charge thinking, as I had done when I donated my table, the goods will be "given free of charge" to the poor homeless people, surely by selling the goods the registered charity nolonger is charitable, but as become a profit making business?

There might be a need for money and this is why they will be selling the table. might it will be a charity shop etc.

I hope you will meet that lady at any other point and than you will able to find the truth about that.

[VendingRevolution]

Personally I do not see any problem with this apart from the lady should have mentioned that anything donated will be going into the relevant charity shop. :)

I recently had my old office at my home overhauled and I called a local cancer charity to collect all the furniture for sale in their shop. It saved me time and effort of removing the whole lot and they collected it within days.

Regards.

Barbara

[Chris Ashdown]

My problem with the large charities is the people at the top end of the organisation earn very large wages, well beyond the average for say a manager locally in industry, or a owner of a small company, yet the workers at the bottom do it for free

[VendingRevolution]

My problem with the large charities is the people at the top end of the organisation earn very large wages, well beyond the average for say a manager locally in industry, or a owner of a small company, yet the workers at the bottom do it for free

When I first found this out, initially I was a little miffed, but you have to look at the bigger picture - these people do bring in £millions in some cases for their charities, therefore they would attract big pay packets, it's all relative. Charities are businesses, no difference, they have bills and wages to pay and those who do work voluntarily, that is their choice. If Mr Top Man was paid as a percentage of what he brings in and he brings in £3m, then he deserves a big pay packet, if he doesn't bring in the money he would not be in the position.

Just my tuppence worth. :)

Kind regards.

Barbara Fellowes

[Gratis Guidance]

A project I am currently working on is related to this issue!

Basically, there are charities and there are social enterprises. Charities have to be more careful that they don't go too far off message, where social enterprises are able to make money anyway they want, just as long as they give their net profit to a community beneficial cause.

When you give a donation to a charity, the charity can do with it as it wants. If it decides that it can do more good to its cause by selling the item than by giving the item away, then its what it should do!

BTW, the issue I'm working on is to do with how charities work with VAT - it seems they can turn over lots more than £68k without having to be VAT registered - its all in the definition of commercial enterprise!!