Let's nail "profit". There is only one use of the word profit in the Act and it states unequivocally that the individual organiser or premises provider is making a charge for a PRIVATE occasion and with a view to profit. The word has no reference in any case where the public as such has a right of access. Most charity events are open to the public because it is the public's money that is wanted for the charity so are not covered by this clause.
Turning to the private events to which the paragraph applies - these are concerned only with members-only events - such as are currently held by many folk-clubs so as to avoid the need for a PEL. The organiser currently makes a charge for admission which is used to cover the running costs of the club which are mainly used for b the cost of hiring the artists not for the organiser's personal profit. The context permits these arrangements to continue provided the consideration (i.e. door money) is not collected for profit. In this conerxt it has nothing to do with charities as such although there is nothing to prevent a part of the consideration being passed on to a charity.
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sj