Trading in order to raise additional funds is not new to many schools, but post academy conversion it needs to be handled carefully.  Many academies offer facilities to the local community or carry out non-educational activities with a view to raising additional money.  While there are sound reasons for doing this, Academy Trusts need to be careful that they are acting within their charitable objects set out in their articles of association. 

In some cases, Academy Trusts may carry out activities and offer facilities that fall outside of the DfE model educational objects.  Depending on the income received from those activities, the Academy Trust may need to operate them through a separate wholly owned trading company to comply with charity and tax law.  It may also be appropriate to ring fence certain activities within a separate limited company to safeguard the assets of the academy. 

Expert guidance through the regulations

We understand that this can be a complicated area, particularly when staff are taking on extra responsibilities and challenges as part of the conversion process. We can help. We are experts in advising on this area of law, which means we can offer real value for money.

Our specialists can advise on:

• Whether your current and proposed activities will fall within your charitable objects or whether they should be operated through a trading company.
• Establishing a trading company.
• Putting in place an agreement between the Academy Trust and trading company dealing with the facilities and services that will be provided.
• Advice on funding and investment options.

Value for money

In most cases we can work on the basis of a fixed fee to assist you in managing your legal budgets.

For more information in this area, please contact Con Alexander  on 0117 314 5214 or Emma-Jane Burnell on 0117 314 5465.