Can my limited by guarantee company claim charitable status if it distributes profits?

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I would like to distribute a small share of profits to the members of my limited by guarantee company as a thank you, but we are planning to apply for charitable status and I do not know if a move like that would impact our chances of acceptance. Could you please give me advice on whether a charitable company can distribute profits or not? Cheers.

Answers

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Unfortunately, your limited company will not be eligible to register as a charity if it distributes any money to its members. This would be viewed as a private benefit that contravenes the charitable objects and nature of the organisation.

a year ago
 

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