Recycling promotion body WRAP has said it is in the ‘early stages’ of converting to charitable status.
It said the move would allow it to widen its sources of finance rather than rely on public money.
A spokesman said: “WRAP is working to diversify its funding base as part of its corporate strategy to build on its unique selling point to bring different groups together and drive real change.
“The board has agreed we should pursue the option of WRAP converting to charitable status which would give us access to other sources of funding. That process is in its early stages.”
Defra cut WRAP’s funding from £25.7m in 2013/14 to £15.5m for 2015/16. The Scottish Government is currently WRAP’s biggest funder, at £26m in 2013/14. The Northern Ireland Assembly and Welsh Government provide £3.4m and £3.2m, respectively.
WRAP would need approval from the Charity Commission for the change in status.
Advantages of being a charity include exemptions from certain income or corporation tax, capital gains tax, stamp duty and inheritance tax on bequests.
Charities also pay only up to 20% of business rates on occupied buildings and can get special VAT treatment.
They are though barred from anything judged by the commission to constitute political campaigning.
WRAP was established as a not-for-profit private company in 2000, backed by funding from Whitehall, the devolved administrations and European Union.