michael_w
Well-Known Member
Wouldn't it be more cost effective giving the children swimming lessons?
RNLI spreading their operations overseas?
- Thread starter Lucky Duck
- Start date
FishyInverness
Well-Known Member
They're both - They have a charity side and a corporate side which is not part of the charity.
bert49uk
Well-Known Member
None of the money contributed in this country for the RNLI is used for their international work. As a RNLI volunteer I have been to a meeting this afternoon where it as explained to us
pvb
Well-Known Member
I suppose that leads to the question - where does the money come from for international activities?
Resolution
Well-Known Member
As a long time contributor to the RNLI I must confess to a twinge of anxiety at learning about their expansion into overseas activities. The direct expenditure so far may be small and self-funding to an extent, but will it remain thus? In business life there are many examples of companies which had developed a successful business model in their home country, only to fall apart when they tried to expand into other countries.
Re the RNLI, I think there is a very good case for them to sell kit to other countries. They have spent more time and £££ on R&D than most and have developed some excellent specialist rescue craft. And training people how best to use the kit is another worthwhile "export". But what can the RNLI realistically tell an Indian Ocean country (which is where the biggest concentration of drownings occur) about how to cope with the monsoon? What experience do they bring to the table? Or are they just showing that we have a superior civilisation?
Re the RNLI, I think there is a very good case for them to sell kit to other countries. They have spent more time and £££ on R&D than most and have developed some excellent specialist rescue craft. And training people how best to use the kit is another worthwhile "export". But what can the RNLI realistically tell an Indian Ocean country (which is where the biggest concentration of drownings occur) about how to cope with the monsoon? What experience do they bring to the table? Or are they just showing that we have a superior civilisation?
Searush
Well-Known Member
The RNLI are leading exponents of fast water rescues - typically in flood waters & swollen rivers. That expertise & their equipment would be a wonderful benefit to the people of Bangladesh for their monsoon period. Selling the old boats & traing the crews would be a very effective way of reducing the loss of life there.
They also train life guards for African beaches as I explained earlier. It's hardly going to swamp their main activities is it?
bert49uk
Well-Known Member
There expertise is sold to foreign countries and also cooperate sponsorship, the work is mainly Training and advice and selling off equipment
mainsail1
Well-Known Member
I find that worrying. The word Charity is splashed about in their website with no mention of a corporate/commercial side other than payment for beach lifeguards which I assumed was a charitable payment.
I wonder if the 'corporate' side gives all it's profits to the charity?
FishyInverness
Well-Known Member
I know, I was very surprised when I was told when visiting Poole HQ. The hotel/training centre is corporate and is not part of the registered charity - I believe the charity then pays to use it. I have no idea as to whether the corporate side then donates back to the charity, didn't ask...
JumbleDuck
Well-Known Member
Anyway, all big charities are also companies.
Tranona
Well-Known Member
The two types of activity are separated for very good legal reasons as the "commercial" activities do not enjoy charitable status, for example being VAT registered. The surplus from these activities is automatically "donated" to the charity.
Nothing unusual or suspect about this, other charities that raise money through commercial activities as opposed to donations operate in this way, as do all universities for example.
Capt Popeye
Well-Known Member
Not wishing to open up any arguments about VAT, but to be VAT registered is an asset to large companies as they can recoup certain tax paid. Do not know if Charities can register for VAT but seems to me that if they can its an advantage to then financially, and a disadvantage to them if they cannot
chanelyacht
Well-Known Member
Charities can claim VAT exemption on certain items - it was always the mad situation with the RNLI that, say, the oxygen cylinder on the boat was VAT exempt as lifesaving - the boat and fuel to get the O2 to the person weren't.
JumbleDuck
Well-Known Member
From the RNLI website
The Royal National Lifeboat Institution is a charity registered in England and Wales (209603) and Scotland (SC037736). Charity number CHY 2678 in the Republic of Ireland | RNLI (Trading) Ltd - 1073377, RNLI (Sales) Ltd - 2202240, RNLI (Enterprises) Ltd - 1784500 and RNLI College Ltd - 7705470 are all companies registered in England and Wales at West Quay Road, Poole BH15 1HZ
I'm surprised that the charity doesn't seem also to be a company, but perhaps the Royal Charter under which it operates fulfils the same purpose.
Searush
Well-Known Member
There have been recent changes to Charity laws to allow small charities to become self-sufficient by selling related services & products.
The Back-2-Bikes project was set up to be self-sufficient, but was not able to register as an independent charity for some years before the rules were changed. We operated as a "project" "managed" by a parent charity - Stafford District Voluntary Services (SDVS). Our decision to go independent under the new rules was largely driven by our revenues rising to a point where they were becoming "significant" to SDVS's turnover & our continued presence would have undermined their charitable status.
There will be a strict limit on what percentage of a charitable organisation can be commercial, hence the need for separate organisations. Making each business separate makes it easier to avoid hidden cross-subsidies so that each can be managed on its own merits/ needs.