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The Legals Of Charity Fundraising As A Small Business

November 3, 2014


Small Companies are increasingly doing their part to contribute to charitable causes and to adopt Social responsibility, in one form or another.


This is rightly so, with increased competition in the marketplace and an increase in focus on the overall ethics and activities of larger organisations, there is every suggestion that the same applies to smaller companies.

One way small businesses can do this is via fundraising programmes involving their employees, for local or national causes.  There has been a great deal of fundraising activity recently amongst businesses e.g. Ice-bucket challenge, often seen as a publicity opportunity.

While individual charities and companies mean well and act with the best of intentions, it is useful to take account of the law in this area. The following may be worth noting:


  • Charity event

An event can only be called a ‘charitable’ event if all the funds are going to a named registered charity.


  • Charity Marketing/Posters

Any posters must have name of the Charity in full as well the Charity registration number.


  • Organising a Charity event/Dinner/party

You may need a Licence from the Local authority. (If it is shown to be a function for charitable cause, then the Licence should have no charge or fee).

If you want to use premises for what are called ‘licensable activities’ for up to 499 people then you may need to serve a temporary event notice on Licensing Authority, Police authority and the Environmental Health Unit.

Again, if you have organised an event which is selling alcoholic drinks then you will need to apply for a Licence.

As such, licensable activities include:

-Sale by retail of alcohol

-provision of late night refreshment

-provision of regulated entertainment

You will need to ensure that you are covered by Public Liability insurance when organising an event in a public place


  •  Collecting Money

It is worth noting, that Gift Aid helps charities reclaim tax from donations. To make sure, the charity benefits from this extra money, need to have the name, address, of all taxpayers that have donated, plus a confirmation that they are UK Taxpayers.

The minimum age for collecting money is 16. If you will be collecting in private places then you will need the consent of the owner.

If collecting on the streets, you will need a Licence from the Local authority. You will then be required to submit, details of total sum of collections.

If you are rolling out a programme of activity, as part of your company’s Employee team building strategy or social responsibility, it is still prudent to check any potential regulatory and legal issues.  There may be a number of legal considerations based on what you are doing, where and the location, this is worth bearing in mind.


Rafiya Shaikh – LawBite Comercial LawBrief. For further legal advice you can contact Rafiya via our online legal advice portal.




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