The choice of structure will affect how each organisation reflects the shared premises arrangements in its accounts.
Option 1 – lead organisation
The lead organisation will show the property as an asset on its balance sheet and will show rental income as an incoming resource.
Option 2 – joint ownership
Each organisation will show its share of the property as an asset on the balance sheet and record their share of the costs under expenditure.
Option 3 – separate company
The property company will prepare its own accounts each year and show the property as an asset on its balance sheet. It will show the rent paid by each tenant as its income. If the property company is owned by several charities, each charity will have to show, as an investment in its own accounts, the shares they own in the property company.
