Developing Charity Land - Opportunities And Pitfalls

If a charity is considering selling or developing land in order to raise funds, there are various ways of structuring the transaction to enable the charity to get the best deal possible in the circumstances. We have set out below a brief overview of the different ways of structuring such a transaction, together with the advantages and disadvantages of each method.

Selling land for development requires a balance between the charity wanting to maximise its revenue and the developer wishing to pursue a commercial venture. As a charity land seller, there are specific procedures that must be followed pursuant to sections 117 to 122 of the Act 2011 ("the 2011 Act"). Furthermore, with certain types of arrangement with a developer there will be tax and trading considerations and it may be necessary to route the transaction through a trading subsidiary.