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    Charities are usually funded by the governemnt, however what if they become a establised company would they still be funded?

    Are they? http://www.charity-commission.gov.uk...rep2008pt1.pdf

    If there are over 190,000 charities then thats around 2 charities to every civil servant.

    Any charity that receives more than a given percentage of its income from the state ceases to become a charity and becomes a non-departmental public body. I can't remember what that figure is, but one of the core principles of charities is that they are independent of Government. The moment they become dependent on the state for funding their independence is compromised. This is especially important where a charitable body has a campaigning arm and a delivery arm - such as Oxfam. Trustees of such charities guard their independence vigilantly.

    Forming a company - e.g. one with limited liability is in part to protect donors and trustees from liability should the charity/company face financial difficulties.

    The Government is also not in the habit of funding charities for the sake of it. If a charitable company is the best organisation to deliver something, it may choose to contract with that charitable company to do so. (It may also have to go out to tender too.)

    Just as the Government is accountable to Parliament on how it spends public money, charities and charitable companies (companies that are also registered as charities) are accountable to their boards of trustees.
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