2009/9/14 Andrew Turvey <andrewrtur...@googlemail.com>: > Re-reading my original email and the reaction to it I should clarify: > > ----- "Andrew Turvey" <andrewrtur...@googlemail.com> wrote: >> The plan is to sell them at cost price to members only. > > "Cost price" isn't a restriction from the Foundation - their main > restriction is that it must be either sold only to members or given away for > free as publicity. It's up to us what price we sell them at, although if we > make significant profit margins there are certain tax and charity > consequences which may be better avoiding. Also I don't want members to get > the impression we're profiteering. Thinking about it again, cost+20% - which > I understand is what cafepress do - sounds about right to cover waste, stock > etc.
Ok, that's better, now we're talking (20% sounds fine to me, 10% might even be enough - depends on the details). The tax thresholds are in terms of turnover, rather than profit. For a small charity the small trade exemption covers us up to £5000 pa. turnover. If we go over that (which is unlikely with t-shirts and things, although the calendar idea could be bigger), we can avoid paying tax by forming a trading subsidiary and having it donate the profits to the charity, it then giftaids them so they are tax deductible reducing taxable profits to zero. (This is all entirely legal, the HMRC website even says how to do it.) I don't think t-shirts will be a large fundraiser, but we have to call it a fundraiser in order for it to be legal. _______________________________________________ Wikimedia UK mailing list wikimediau...@wikimedia.org http://mail.wikimedia.org/mailman/listinfo/wikimediauk-l WMUK: http://uk.wikimedia.org
