Test your understanding: Answers revealed

Answer 1
The measures that might be used include:

  • income in donations and changes in income over time 
  • income by source – personal donations, corporate donations etc
  • responses to campaign initiatives such as television adverts, newspaper coupon advertising, appeals relating to specific crises, and collection envelopes 
  • cost containment measures, such as management costs and other operating expenses (this is a particularly important factor, as some charities are criticised if administration costs absorb a high proportion of income) 
  • income from commercial activities 
  • numbers of volunteers attracted 
  • changes in mortality and sickness in areas where relief has been provided.

Answer 2
There are many motives for giving to charities. In relation to charities that finance research into illnesses and diseases, such as cancer research, many people give because they or their families have been affected personally by the illnesses and diseases. They may give to similar charities such as Marie Curie nurses (who provide help for those affected by cancer) in order to give something back to those who have supported them.
Some give to charities because they have a deep‑seated belief in what the charity does.
A good example of this is Amnesty International. A purely financial motive for giving is to avail oneself of tax breaks, as most charitable donations can be set against tax liabilities. Some give because they regard it as an expectation of society, or because they follow the example of family and friends.
Another motive for giving is simply that it makes some people feel good, or raises their profile with others. 

Answer 3
The council would wish to ensure that: 

  • the commercial value of the premises/business has been assessed by a suitably qualified valuer 
  • an appropriate rent would be included in the lease to ensure that income would be at least that received under existing arrangements, and that appropriate steps would have been taken to secure the highest possible rent 
  • the lessee would sign a covenant to be bound by the rules of the charity, as well as any covenants applicable to the title to the land 
  • the property belonging to the charity could not be used in any manner inconsistent with the aims and objectives of the charity 
  • any conditions applicable to the lease would be applicable to any subsequent sub-lease, or that sub‑letting would be prohibited/restricted 
  • the tenant would be a fit and proper person