It is allowed for registered charities to enhance the places they rent. However, they are required to comply with certain regulations. Let's discuss those rules in detail.
What's the Policy About?
The policy, known as CPS-006, released at the end of 1994 but still the law, talks about how registered charities can make improvements to the property they lease from others.
What Does "Leasehold" Mean?
First things first, let's understand some key terms. When you rent a house or land, it's called a leasehold. It's like borrowing something for a specific time.
What are Leasehold Improvements?
Imagine renting a house. You might want to add a new shelf or paint the walls. These changes you make are called leasehold improvements. It's like decorating a room you're borrowing for a while.
Rules for charities making leasehold improvements:
So, can charities improve leased property? Yes, they can, but they have to follow certain rules to make sure it's done fairly.