Setting up a charitable trust
As a registered charity, a charitable trust is run independently of your company but according to the objectives you set out. Your company donates a sum of money to the charity, which uses it to provide help to beneficiaries – usually in the form of grants paid directly to creditors. Independent trustees oversee all the policy and grant decisions.
For companies wishing to help customers in debt, setting up a charitable trust typically offers you:
- A way to support vulnerable customers
- Customers who are more inclined to be open about personal circumstances knowing it is held confidentially by an independent organisation – leading to better identification of genuine ‘can’t pays’
- Tax efficiencies
- Separation and easy identification of costs
- Scoring against social responsibility targets
- Ring-fenced financial commitment – donors not under pressure to top-up the fund
- Customers encouraged to pay future bills after receiving support
- Enhanced external reputation as company seen to be wanting do the right thing. Auriga’s set up of your trust includes all the necessary legal and preparation work and adaptation of our systems to meet your requirements.
- We apply for charity registration on your behalf and normally advise incorporation as a Ltd company for added protection of the trustees
- If required we can propose trustees or help you appoint them
- Trustees will typically delegate grant-making decisions to Auriga.
Our first day’s consultancy is free, so please contact us to find out how a charitable trust could work for you.