A tricky one...setting up a not-for-profit mountain retreat in Italy.

Savvy_Sue

gregdedman wrote: »

Please remember there are many UK companies all over Europe doing this kind of thing, albeit with a money making slant. Can anyone help with advice for how I go about this from a non money making slant?

TBH, I think you need to go about it in exactly the same way as if you were wanting to make a profit. Why? Because if you DON'T make a profit, you won't last very long. Once you've made the profit, you can decide what to do with it.

You mentioned above about making a profit one season, then doing another. Remember to allow for contingencies, the unxpected etc.

paddyrg

I think Sue is right on the money, there's no structural or tax advantage I can see, so set up as a regular profit making venture and after the first year or so re investing and stabilizing the business you may well be in a position to donate the profits.

Sound like nice breaks to be honest

buglawton

I suggest try to find a comparable business in Italy, it need not have UK connections, and persuade them to mentor you (assuming you are really stuck on Italy).

rochja

You have set me thinking about your business model and trying to find a way to make it work. My first worry is that if you are setting about breaking even, given these uncertain times, what happens if you repeatedly make losses? Philanthropists you may be but can you afford to take repeated hits? It seems to me that you need a good business plan and excellent contacts [and contracts] before you launch. Savvy Sue is an excellent source of advice and anything I say next has to be modified by the input of others. However, you have sourced the accommodation and the local contacts and it seems straight forward enough to run an accommodation and food only serice. It is easy enough to set up a business plan for such a basic model and come up with a unit price which given a certain throughput will cover your overheads. So how about a tie in with for instance the Sunshine club of Great Britain where they worry about the funding for at cost holidays for sick kids. Optional extra services such as you want to supply could then be provided given the correct personal liability insurance and in return for a charitable donation from the families of the kids. All money so raised can then go to your chosen charity. End of year accounts can be open to audit from the charity/ies you provide a service to so they can see that any remainder you hold on to as a contingency fund is reasonable and that you are operating on a profit free basis. I think you would need good accountants and solicitors to make this watertight but you may be able to sell the business model well enough that you can find someone willing to donate their resources. This is a major project and needs an experienced project specialist. You need to approach someone like the team at 'the coldest journey.org' or the team that backed Euan McGregor on his adventures. There are a number of charities working with South American street children and I have raised funds previously for Casa Alianza. You don't need to set up your own. I sincerely hope you can make this work.

gregdedman

Hi rochja, you know sometimes you can't see the wood for the trees? Well, this is one of those moments. The idea of inviting sick children is genius. Especially considering one of my friends who wants to partner me on this is a paediatric nurse for sick children.

This concept works better too in that the reward for those who need it is doubled, ie sick children get a cheaper, activity/therapy based hoilday and money raised goes to further charities abroad.
I would love to discuss this more when I'm back from work but I thankyou for this epiphany!

ILW

As said before, run it as a commercial venture and then worry about what good works can be done with any profits.

rochja

Glad to have been of service. No promises but there is an outside chance somebody with the right expertise might pm you...Let me know if he does. Thanks.

Cpu2007

As clearly the second user replied, Italy is famous for corruption and high tax rates on almost everything. Setting up something there is extremely hard and before you can even get some profit, you'll have to deal with all the taxes and regulation costs that will demoralize you ultimately.

However, I remember hearing recently about some businesses opening on a base of "donation,charity" and that they did not have to pay taxes or other costs that you would otherwise pay. These businesses were doing it wrong but it was something done to survive against the high cost of opening a business.

You could do a research on this matter and open something similar

gregdedman

Thanks for everyone's advice, have I got this right...

1. Find a good local chartered accountant
2. Register as a sole trader or Limited company
3. Purchase Public liability insurance
4. Possibly Employees insurance even though 3 of us will be effectively volunteers and not taking a wage

Is that as simple as I can put it?
Anyone have any good insurers for tour operators?

Regards

buglawton

Because of safety liability/responsibility for others, I would say it has to be a limited company. Presumably you mean you would register this co in the UK. Once the turnover exceeds £80,000 p.a. the 'customers' will have to pay 20% VAT. Any VAT reclaims for services purchased would likely be cross border ones, bit of an admin nightmare. So the Chancellor would benefit more than anyone! Maybe worth registering in Ireland or Luxembourg instead.