Trading
- Types of trading
- Benefits of trading
- Is trading for you?
- First steps to trading
- Legal and regulatory issues
- Useful sources of information
Voluntary and community organisations are earning more income through trading each year. In 2003/04, earning accounted for 47% of the sector’s total funding, compared to 45% from gifts, grants and donations*. Some organisations trade directly and others set up trading subsidiaries just for fundraising purposes. There are several ways in which trading can be used to generate income.
- Selling goods and services on the open market – for example training courses, room hire, consultancy work
- Charging beneficiaries and service users
- Developing trading arms – for example, charity shops
The activity of trading is sometimes referred to as ‘social enterprise'. Social enterprise is not only a type of organisation but also an activity.
This section seeks to illustrate that trading is not about turning voluntary and community organisations into commercial businesses. But enabling organisations to become more financially sustainable by exploiting opportunities for trading and diversifying their income base.
Throughout the section there are useful resources available – case studies, weblinks to further sources of information and various guides to download.
(* Source: The UK Voluntary Sector Almanac 2006)
