Finding a structure to suit
your group
Davina Key, Locality Manager
David White, Community Development Worker
WCAVA North Warwickshire
Contact: 01827 718080
Working for a stronger Voluntary and Community sector in Warwickshire
WCAVA SERVICES
•Governance advice/trustee support/attend meetings
•Funding options/plans/writing funding applications
•Networking - VAN Forums and fundraising forums
•Business planning
•Quality assurance
•Community Accountancy
•Volunteering
•E-Grapevine, WCAVA Connect
Working for a stronger Voluntary and Community sector in Warwickshire
Structure options:
•Unincorporated Organisation
•Company Limited by Guarantee
•Charitable Incorporated Organisation (CIO)
Working for a stronger Voluntary and Community sector in Warwickshire
Unincorporated Association (small charity)
May be suitable to establish a small charity where the following apply:
•Annual gross income will remain under £5,000
•It has a membership
•The charity trustees are to be elected by members
•The objects of the organisation are carried out
wholly/partly by, or through, its members
•The charity neither owns a building nor employs
people
Working for a stronger Voluntary and Community sector in Warwickshire
Unincorporated Association (small charity)
• Governing Document: Constitution or ‘rules’
• Must have at least 3 trustees – segregation of
duties
• Must have a bank account
• Must have necessary policies & insurance
• Constitution usually allows trustees to take out
indemnity insurance
Working for a stronger Voluntary and Community sector in Warwickshire
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Unincorporated Charity
Charity’s with gross annual income of £5,000 and above
MUST register with the Charity Commission
Need to use Charity Commission model Constitution
You need to complete an annual return form every year if
you have income of more than £10,000 but less than
£25,000
£25,000 up to £500,000 – Annual return form, Trustees
Annual Report (TAR), accounts and examiner's report,
report serious incidents
Working for a stronger Voluntary and Community sector in Warwickshire
Charitable Company (Company limited by guarantee
and registered charity
• Memorandum and articles of association create a
company
• Governed by: Directors (company) & trustees
(charity)
• Company is a legal person separate from its
members and directors
Working for a stronger Voluntary and Community sector in Warwickshire
Charitable Company
• Appropriate if:
• The organisation is to be quite large
• It will have employees
• It will deliver charitable services under contractual
agreements
• It will regularly enter into commercial contacts
• It will be a owner of freehold or leasehold land or
property
Working for a stronger Voluntary and Community sector in Warwickshire
Charitable Company
• The directors are agents of the company and are not
normally liable personally for its debts
• Company is a legal person separate from its members
and directors
• Company will have limited liability (nominal amount, eg
£5)
• Subject to company law as well as charity law
• Charitable companies are not commercial companies
Working for a stronger Voluntary and Community sector in Warwickshire
Charitable Incorporated Organisation (CIO)
A CIO is:
• a new legal form for a charity
• an incorporated form of charity which is not a company
• registers with the Charity Commission and not Companies
House
• Is only created once it is registered by the Commission
• Can enter into contracts in its own right and its trustees will
normally have limited or no liability for the debts of the CIO
Working for a stronger Voluntary and Community sector in Warwickshire
Charitable Incorporated Organisation (CIO)
Benefits of a CIO:
• Members and trustees are usually personally safeguarded
from the financial liabilities the charity incurs
• Charity has a legal personality of its own
• Able to conduct business in its own name rather than the
name of the trustees
• Simpler to set up and manage than establishing a
charitable company
Working for a stronger Voluntary and Community sector in Warwickshire
Charitable Incorporated Organisation (CIO)
Just some important differences:
• All CIOs will have to register with the Commission,
regardless of their income, even if they have an income of
less than £5,000
• CIO can’t be an exempt charity
• All CIOs will have to submit an annual return and accounts
to the Charity Commission regardless of income
• Insolvency law applies to CIOs
Working for a stronger Voluntary and Community sector in Warwickshire
Charitable Incorporated Organisation (CIO)
Issues unincorporated Charities need to consider:
• CIO will be a new legal entity with a new register charity
number
• Unincorporated charities with property (land or
investments) with restrictions on it being spent as income,
need to contact Charity Commission before setting up as a
CIO
• Must produce accounts under charity law
Working for a stronger Voluntary and Community sector in Warwickshire
For more information:
David or Davina at the North Warwickshire office.
Tel: 01827 718080
Contact our Community Accountancy Service for help
with your finances.
Call: 01827 721223
Working for a stronger Voluntary and Community sector in Warwickshire
Are you Fit for Funding?
•Do you have a constitution or set of rules?
•Is there a strong management committee?
•Do you have robust financial systems in place?
•Have you managed funding in the past?
•Do you know what you need funding for?
Working for a stronger Voluntary and Community sector in Warwickshire
Documents, Policies and Requirements
•Is your Governing document ‘fit for purpose’? Does the project you
want to deliver meet the aims and objectives of your Governing
document?
•Is the Equal Opportunity Policy up to date and appropriate?
•Is the Child Protection Policy valid, CRB Checks regularly carried
out and up to date?
•Do you have a Vulnerable Persons Policy?
Working for a stronger Voluntary and Community sector in Warwickshire
WHY A CHARITY NEEDS INSURANCE – basic considerations.
• Trustees duty to protect their charities assets
• Certain types of activity where insurance is required by law.
Types of insurance that might be needed:
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Building and contents insurance
Public liability
Events insurance
Trustee liability
Good Idea or Real Need?
•So you’ve got a good idea, but is it a real need?
•How can you demonstrate the project will make a real difference to
peoples lives?
•Is there a similar project nearby?
•Have you visited other similar projects to see what worked and
didn’t work for them?
Working for a stronger Voluntary and Community sector in Warwickshire
So what’s next?...
When you have:
•The appropriate documents, policies and procedures in place
•You can demonstrate a need for your project
•You have quotes for equipment or specialist services you will need to
buy in
•Your finances are straight
(Speak to our Community Accountancy Service for help: 01827 721222)
You’re ready to look for a funder...
Working for a stronger Voluntary and Community sector in Warwickshire
Ready, Steady...
Funders will need to know:
•What you want to do
•How you’re going to do it
•Why the project is needed
•When you are planning to deliver it, and how long it
will last
•Where the project will be delivered
Working for a stronger Voluntary and Community sector in Warwickshire
Go...
•Search our Funding Portal for funding opportunities
•Contact your local WCAVA office for advice and support
•Sign up to E-Grapevine to keep up to date with the latest
funding news
•Check the local press for stories on groups who have
received funding and funding news flashes
Working for a stronger Voluntary and Community sector in Warwickshire
Insurers:
Keegan and Pennykid Insurance Brokers
Tel: 0131 225 6005
Website: www.keegan-pennykid.com
Aon Charity Assurance
Tel: 0845 740 2003
Website: www.charities.aon.co.uk
M C Ladbrook
Tel: 01909 565 858 Website: www.ladbrook.co.uk
Endsleigh
Tel: 01242 866906 Website: www.endsleigh-business.co.uk
Working for a stronger Voluntary and Community sector in Warwickshire