So what’s the ideal?
For my money, always bring it in-house. If you are already a registered charity, there’s little to be gained from setting up another charity. If you are not, or cannot be, a charity (such as a local authority-run theatre), there can be benefits from being able to fundraise through a charitable vehicle, but make sure that you understand the full implications before setting down that path. It can be a bit like a Parent Teachers Association ending up running the school — they are obviously concerned individuals but they might not have the appropriate skills and they often have a vested interest in choosing a particular direction. Assuming you already have a first-rate friends organisation, how can you keep it that way?