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Non-profit making body meaning

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What does Non-profit making body mean?
Non-profit-making body describes a body of persons (incorporated or unincorporated) whose activities are not carried on for profit. In practice it is an organisation that does not distribute profits or assets to members, shareholders or controllers; any surplus is reapplied to its purposes (while meeting reasonable costs and remuneration). The expression is descriptive rather than a single legal status, though particular statutes and guidance use or define it for specific regimes (for example in VAT and education exemptions, procurement and subsidy control, grant funding and business rates relief). It is commonly used alongside not-for-profit. Examples include charities and non-charities such as companies limited by guarantee, charitable incorporated organisations (CIOs) and Scottish CIOs (SCIOs), community benefit societies, unincorporated associations and trusts; in Ireland, companies limited by guarantee and charitable trusts and associations. A non-profit-making body may trade and generate a surplus, but must not distribute it. The concept is distinct from charity status: all charities are non-profit-making, but not all non-profit bodies are charities. Usage and core features are broadly consistent across England and Wales, Scotland, Northern Ireland and Ireland, although specific statutory definitions and regulators differ (e.g., Charity Commission, OSCR, CCNI and the Charities Regulator).
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NEWS
Weekly local government law update: Procurement Act 2023 go-live, key cases and guidance on finance, children’s social care, education, housing and environment—27 February 2025

In this issue: Public procurement Local government finance Children's social care Education Social housing Social care Environmental law and climate change Daily and weekly news alerts New and updated content Latest Q&A Public procurement Procurement Act 2023 ‘go live’—what happens next? From 24 February 2025, the main provisions of the Procurement Act 2023 (PA 2023) took effect. Procurements started on or after that date must proceed under PA 2023, while those commenced beneath the earlier legislation (including the Public Contracts Regulations 2015, Utilities Contracts Regulations 2016, Concession Contracts Regulations 2016, and Defence and Security Public Contracts Regulations 2011) must continue to be run and administered pursuant to that earlier legislation and regime. This analysis sets out some of the principal details and developments, with practical tips and insights from expert contributors to our guidance on PA 2023. See News Analysis: Procurement Act 2023 ‘go live’—what happens next?...

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NEWS
UK tax roundup: Autumn Budget 2024 and Finance Bill 2025, employer NICs changes, carried interest reform, VAT and corporation tax cases, HMRC guidance updates—14 November 2024

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NEWS
Local government law highlights: devolution and planning reforms; key housing, education, social care, highways and finance developments (England and Wales) — 19 December 2024

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View the related Practice Notes about Non-profit making body

PRACTICE NOTES
UK Construction Products Regime: UKCA/CE marking with continued CE recognition, designated standards, conformity assessment, enforcement, GB-NI divergence, and reforms post-Grenfell under the Building Safety Act 2022

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PRACTICE NOTES
Charitable and political donations: UK anti-bribery risk management, due diligence, and Companies Act 2006/PPERA 2000 shareholder approval and disclosure requirements

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PRACTICE NOTES
Brazil advertising and marketing law: 2021 Q&A on regulation, enforcement, CONAR, influencer and children's adverts, sector-specific rules, promotions, social media and privacy

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