third sector

Question 1

features of a charity

Answer 1

no individual owner

controlled by board of trustees

raise finance through donations, sponsorships and fundraising events

Question 2

advantages of a charity

Answer 2

-exempt from paying some taxes such as VAT and corporation tax
-low wage costs due to volunteers working for free
-private companies are more willing to donate and sponsor charities than ever before as it is good ‘PR’

Question 3

disadvantages of a charity

Answer 3

-can be difficult to compete with profit driven private sector businesses
-charities rely heavily on volunteers who may leave for paid work

Question 4

what is a social enterprise

Answer 4

organisations that aim to make a profit to benefit a specific group or cause

Question 5

advantages of social enterprises

Answer 5

-social aims can endear a social enterprise to customers
-good quality employees who believe in the social ‘mission’ are attracted to the business
-they are likely to receive government grants due to their positive impacts on society
-‘asset lock’ means that if the charity were to be shut down then all money from assets would be given to their cause