How to set up a non-profit organisation

Is there a need for your organisation? Are there gaps in services? Have you talked to people about what is needed and where? Are there people that can help you? Have you got ideas where your resources will come from? Could you link or partner with another organisation?

Legal structures: new or small organisations For small or new organisations with an income of less than £5,000 Set up a Constituted group/unincorporated association Constitution is agreed and signed by the Management Committee Management Committee with at least 3 people. Can apply for a range of grants.  Trustees are personally financially liable (unless you also register as a type of company). This is rare, but you must be aware of the liability.

Legal structures: Registered Charities Register with the Charity Commission You need at least three Trustees Chose if you want members as part of your charity. There are charity tax benefits. Trustees cannot normally benefit financially (unless authorised). Charities can apply for a wide range of grants. Submit an Annual Account and Report to the Charity Commission  Trustees are personally financially liable (unless you also register as a type of company). This is rare, but you must be aware of the liability…

Legal Structures: Charities Charitable Incorporated Organisations Register with Charity Commission. Charity and company status. Reduced risk and liability. Choose whether to have members. At least three Trustees/option for members. Charity tax benefits. Trustees cannot normally benefit financially (unless authorised). Can apply for a wide range of grants. Charitable Trusts: Governed by Trust Deed. Result of donations for specific purposes. Unincorporated. Have no members. Can apply for a wide range of grants.

Legal Structures: Social Enterprises Community Interest Company Companies limited by guarantee or shares. Statement shows their social aims. Generate income through trade. Directors can be paid. Wider source of finance options but limited access to grants. Register with Companies House and CIC regulator. Other forms of social enterprise: Industrial and provident society Co-operative Charitable Trading Arm * (charities must establish a trading arm, if more than 25% of income is through trade)

Charities: Your charitable purpose The law says: 1.Your charity’s ‘purpose’ is what it is set up to achieve. A charitable purpose is one that falls within one or more of 13 ‘descriptions of purposes’ listed in the Charities Act Is for the public benefit (the ‘public benefit requirement’) So you must make sure: Your charity’s purposes should make it clear: what outcomes your charity is set up to achieve how it will achieve these outcomes who will benefit from these outcomes where the benefits extend to

Decide what skill sets and experience you need? Write a role profile Undertake a recruitment campaign Take up references and check on: Insolvency Service Website Register of disqualified directors Undertake an Enhanced DBS check Appoint trustees and provide an induction Inform Companies House and the Charity Commission Charities: Find Trustees

Provide an induction programme that helps the trustees understand the organisation Give them copies of your: governing document latest annual report and accounts minutes of recent trustee meetings policy on dealing with conflicts of interest strategic plan and its vision and values or mission statement The essential trustee: what you need to know (CC3) The hallmarks of an effective charity (CC10) Charities: Your new trustees

Charities: choose a name

Charities: model governing documents Model trust deed for a charitable trust Model constitution for a small charity Model constitution for a small charityModel constitution for a small charity (word version) Model constitution for an unincorporated charity The Charity Commission has published a number of templates, models and guidance

Charities: CIO model governing documents ‘Association’ model‘Foundation’ Model Model memorandum of association not having a share capital Model articles of association for a charitable company

Charity Commission: registration if your charity is based in England or Wales and has over £5,000 income per year then it must register with the Charity Commissionbased in England or Wales If your charity is a charitable incorporated organisation (CIO) it must register whatever its income. Online charity registration form

If you have any questions need any further assistance please contact CommUNITY Barnet at: