Why have a legal structure
When setting up, you can be a community group, registered charity, company limited by guarantee or shares, employee led co-operative or partnership.
 
Deciding which legal structure to choose is similar to buying a car. If you turn up at the car dealership without really knowing your preferences or requirements, you will end up with a car not fit for your purpose. In the same way, if you choose a legal structure - trust deed, memorandum and articles of association, constitution etc without working out what you aim to do and how you will do it, your legal structure will also not be fit for your purpose.
You do not need a legal structure to undertake charitable activities e.g. a sole trader might fund a Saturday School from their profits but having a legal structure does make it easier to raise funds, manage finance, show accountability and reassure your stakeholders.
 
  
 Working out which legal structure
We cannot give you that answer on this website as there are many variables at play. We can, however, suggest a couple of steps.
 
  1. Work out exactly what you want to do over the next 10 years. Use this information to set out your aims or objects. All your charitable work has to fit within the objects. Let’s say you set up an after-school club for children. Running the club is what you do / your activity. Your object could be ‘advancing the education of children up to 16 in Croydon’ as you might want to set up a primary school in 2020. The broader they are, the more flexibility you have in the future.
  2. Work out the rules by which you want all your members to abide - how you elect committee members, accept new members, how many meetings you have etc. Most legal documents have general rules listed that you amend. These include:
Powers - what you can do legally to carry out activities e.g. hire buildings
Membership - who can join your group, how members are disqualified
Committees- how and when it is elected, which jobs need filling (chair, secretary and trustee normally).
Annual General Meeting - how often you hold this so you can elect the committee members and review the annual finances
Finance - how your group prepares annual accounts and reports
Changing things- how you can alter these rules if they don’t work for you
Dissolution - how you close down your organisation
 
This work forms the start of your governing document, used by everyone to know:
 
  • what your organisation aims to do
  • how your organisation will be run
  • who is responsible for running your organisation
  • how to hold you accountable for funding received
A small group often starts with a constitution which enables a group of people to come together democratically, with a specific aim. Members decide who will be on the management committee, who is responsible for overseeing the activities. Once the constitution is agreed it becomes a legal document. The committee members, not the group’s members are personally responsible for making sure the rules are followed.
For a model constitution read more
 
 
  
 Charitable Incorporated Organisation (CIO) delayed until next year

The implementation of the new legal form Charitable Incorporated Organisation (CIO) is not now expected until the first quarter of next year.

According to law firm Bates Wells and Braithwaite, the proposal to limit availability of CIOs to new charities means the CIO will not initially be available for unincorporated charities wishing to convert.

The new timescale was confirmed by minister for civil society Nick Hurd in Parliament on Monday in response to a question from Conservative MP Jackie Doyle-Price about when the CIO structure would be announced.   Read more

  
 NEWS: The Bribery Act 2010

Bribery Act 2010


The Bribery Act 2010 is effective from 1 July 2011.  For a summary of the key ways in which this Act will affect charities and the principles on which organisations should decide how to manage their procedures to prevent accusations of bribery being committed on their behalf go this website.

  
 contact details

Bhupendra Solanki

Capacity Building Manager
CVA Resource Centre
82 London Road
Croydon
CR0 2TB
Monday-Friday
020 8253 7094
 
  
 Feedback



Send

 
  
 Shortcuts to Popular Services
Services for Groups

Services for Individuals

 
Services by Theme

 
Services for Partners

Services for Others

 

 CVA, CVA Resource Centre, 82 London Road, Croydon CR0 2TB.  020 8253 7060

Email:  cva@cvalive.org.uk

Registered Charity No. 1060157

Company Limited by Guarantee No 3271298

Please note:  not all of the opinion expressed via this website constitutes the policy or position of CVA. Thank you.

  
dummy