Hi All, In my spare time rolleyes I volunteer for our local in bloom group. The group have recently become a CIC company, enabling them to apply for larger grants. I've agreed to be a director. What we do is take neglected council owned green spaces, get a licence to plant from the council, then we get donations from public and spend all the donations on plants and materials to make the site look good. The idea with being a CIC is to start being able to apply for much larger grants, for instance I've just submitted one for £15,000 which will be spend on adding new planters to our retail areas (which the council won't fund). We will then get sponsorship for each planter to pay for its maintenance (watering new plants etc). Although our threshold won't ever be close to VAT registration I'm wondering if we would be wise to register. For instance on the project above all of the goods purchased will be subject to VAT which the group could reclaim, effectively giving the group 20% additional funds to spend. From what I understand donations are exempt from VAT, Grants depends on the small print, and sponsorship would be 20%. Although, many of the businesses that would be our sponsors would probably be VAT registered so would like to claim back the VAT themselves. Please can I have your thoughts.