Whats the best way to do this?

Happyeater_2

A few friends and I plan on going to The Gambia and recording their music. We'll then use our own mixing studios here and produce CD's for sale here in the UK (and perhaps Europe). Apart from the cost of the CD's and packaging, all profit is intended to go back to The Gambia to help them survive, help with their education and health. The plan is to send half to the artists (who in turn look after their extended families) and half to go to worthy charities in The Gambia (perhaps based in the UK).

Is there an easy way to do this? Would we need to set up a Company even though the revenue will be small and no profit at all made? Are there any tax implecations we need to consider at either end you could think of? Perhaps giving the money to UK based Gambian charities or Trusts would be better?

Any advice would be gratefully received.

Many thanks.

ahai1

I don't know but my best bed would be to work with a charity who maybe willing to work with you to sort out some of the logistics as if you go on your own it will cost.

Happyeater_2

ahai1 wrote: »

I don't know but my best bed would be to work with a charity who maybe willing to work with you to sort out some of the logistics as if you go on your own it will cost.

Thanks for that (apart from the bed bit!! haha). I'm going to speak to a few charities too. Its the cost and red tape that worries me not knowing what I'm doing with this all.

ahai1

Let us know how you get on.

Happyeater_2

Certainly will do. To be honest, it's all a bit daughnting. Knowing where to even start would be helpful.

I'm going to ring a couple of the charities set up in the UK to help Gambian causes and ask them first.
Perhaps a call to my local Inland Revenue office may shed some light on things too?

ahai1

Phoning your local office is a waste of time in my experience as you are directed to a unhelpful call centre somewhere in Wales or god knows where.

fengirl_2

Certainly, if you just go ahead and do this, the people involved will be liable to income tax on the profit - it doesnt matter where the money goes to ultimately.
You need to set up a properly constituted organisation with charitable objects (you wouldnt register as a charity at this time) which make it clear where the money is going. This can then be submitted to HMRC Charities Divn (or whatever its called this week) for them to grant exemption from tax.
Your CVS will help, or PM me.

ahai1

Here is the link to the HMRC charity section http://www.hmrc.gov.uk/charities/ I did not have much time to check it out so hopefully what you are looking for should be in there. Personally I would work with an existing charity as they should have all the neccessary things for dealing with this and if not go to another one.

Happyeater_2

Thank you for all the advice so far. I'll be chatting to some charities over the next few days and will let you know what's being said.