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Community Groups and Voluntary Organisations There is a wide range of structures open to orgainsations which are active in the community. People frequently refer to such organisations as 'not-for-profit' or 'non profit-making' organisations. There are two main categories one is referred to as Social Enterprises and the other is Community Groups and Voluntary Organisations . This second group covers a whole mass or orgainisations, ranging from small neighbourhood groups run by local people to larger voluntary agencies with staff. They may be working to improve their local area, campagining for change or providing a service. Some, but not all with be charities. They can be listed as follows:- 1. Unincorporated Association This is a membership organisation. It can be whatever its members want it to be, and carry out whatever activity you choose. It is the easiest, quickest and cheapest way for a groups to set itself up. There is no need even to keep a membership list - anyone who is entitled by your rules to be a member can simply turn up and take part, It is ideal for many small groups to fall into this category (sometimes without knowing it) You do not have to seek approval of any kind before setting up and you are free to dreaw up your own democratic constitiution setting out the rules under which your grup will be run. you do not have to register with any regulatory body, though if your group has charitable aims and an income above £5,000 per year you are required to register with the Charity Commission. Charity Commission Direct PO Box 1227 Liverpool, L69 3UG Tel 0845 3000 218 www.charitycommission.gov.uk 2. Charitable Trust A Trust is usually set up to manage money or peoperty for a charitable purpose and it will register with the Charity Commission. It is not a membership organisation but is run by a samll group of people, known as Trustees, although the Trust Deed (its govening document) can be written in such a way as to allow for members. This structure is suitable for a charity with more professional aims which want to employ a very small number of workers or manage a building. A trust is fairly cheap and simple to establish. 3. Charitable Incorporated Orgainsation (CIO) This new form of charitable organisation was expected to be introduced in the Spring of 2008, but the date has slipped back to late 2008 or early 2009. It will give a charity the main advantages of a company charity - a legal personality and limited liability - but it will be registered with and regluated by the Charity Commision only. 4. Company Charity A Company Charity is Limited Company with charitable aims. It is a membership organisation (a list of members is part of the Company Regiser) and accountable to the community. It also has a legal identity seperate from its members and its directors are agents of the company and are not personally liable for its debts. There are two types of Limited Company. A Company Limited by Guarantee is one in which there are no shareholders and any surplus is reinvested in the company. This type is recommended by the Charity Commisssion. A Company Limited By Shares is more usually found in the commercial sector, where its members invest money in the hope of gaining a profit. Establishing a Charitable Company currently involves registering with both Companies House and the Charity Commission. Companies House Crown Way Cardiff, DF14 3UZ Tel 0870 3333636 www.companieshouse.gov.uk |
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