How Being a Charitable Trust Benefits Our Care Home Residents

This article looks at the benefits of care homes being run by a charitable trust – something which applies to Baxendale Care Home in North London.

The blog will take around three minutes to read.

At Baxendale, we offer specialist dementia care and respite care as well as long-term residential care. Our staffing rotas are split into three daily eight-hour shifts, so we can offer round-the-clock care.

Baxendale Care Home – a 24-hour Caring Home in Whetstone

At Baxendale, we offer specialist dementia care and respite care as well as long-term residential care. Our staffing rotas are split into three daily eight-hour shifts, so we can offer round-the-clock care.

1. Every Penny Is Reinvested in Care

In a commercial care home, a portion of resident fees goes toward profit margins and dividends to shareholders, who often have little or no connection with either the home or the surrounding area. In a charitable trust, 100% of any financial surpluses can be reinvested straight back into the home.

This can mean:

• Higher Staffing Ratios: Reinvested funds mean more staff per resident, ensuring care is attentive rather than rushed.
• Better Facilities and Gardens: Facilities, including the residents’ rooms, are continuously upgraded with modern equipment, comfortable communal spaces, and the gardens and lake, which are among our key attractions.
• More Events: Extra funding supports specialised therapy, outings, music sessions, and activities which can be tailored to the needs of residents. These are another of Baxendale’s unique selling points.

2. Tax Relief and Financial Efficiency

Charitable status brings significant tax advantages that reduce running costs. These include:

• Corporation Tax Exemptions: In the UK, charitable care homes are exempt from corporation tax on profits earned through their primary charitable activities.
• Business Rates Relief: Charities typically receive up to an 80% reduction (or full relief) on mandatory local business rates.
• Gift Aid and Grants: Care homes can accept tax-deductible donations, claim Gift Aid (adding 25% to eligible individual donations), and apply for philanthropic grants that private homes are not eligible for.

3. The Focus on Staff Investment and Continuity of Care

Quality social care relies heavily on staff retention and training. Any charitable trust surpluses are frequently directed into competitive salaries, ongoing professional development, and staff retention programmes.

Higher job satisfaction leads to a more stable workforce, ensuring residents build long-term relationships with familiar carers rather than temporary agency staff.

4. Robust, Independent Governance

Charitable trusts are held to strict legal, financial, and ethical standards. This means they have a board of independent, volunteer trustees who receive no salary or financial dividends. Their sole duty is to uphold the charity’s mission and ensure high standards of care. Again, this contrasts with management in for-profit care homes.

In addition to health and social care regulators (namely the Care Quality Commission, which provides regular ratings for all care homes), charitable homes are also monitored by the Charity Commission. This guarantees a high level of public accountability and financial transparency.

Contacting Baxendale Care Home

If you would like to know more about any aspect of Baxendale Care Home, follow this link and complete the online form. You can also call us on 020 8445 1127 or email: info@baxendalecare.org.uk.

FAQs

Q: Does Baxendale’s charitable status help when it comes to setting fees?

A: Yes, our non-profit structure allows us to keep our charges as low as possible while maintaining excellent standards of residential and dementia care. We calculate our fees strictly to cover operational costs rather than to drive profit margins, making us a consistently competitive choice in Barnet and the wider North London area.

Q: What happens if my loved one’s personal savings run out and they can’t pay the fees?

A: We are immensely proud of our core founding principle: we have never asked a resident to leave Baxendale because they ran out of funds. If a resident’s personal finances change, we work with the local authority. Where top-up funding isn’t possible, we maintain a special Designated Fund specifically to provide grants so residents can remain safely in their home.

Q: Who is the home open to?

A: We open our doors to anyone aged 65 or older from any background, faith, gender or personal circumstances, however, our Charitable Charter does require us to give preference to women.