Debt Collection for donations?

Errata

tbourner wrote: »

OK. You're all probably right. The wife and I have done a lot of hard talking to the founder already as she only has the dogs interest at heart and doesn't really 'get' the business side of things (which is why we have far more dogs in than we can handle as a small outfit, and they're all now in kennels costing us LOADS of money!!). It should be an internal change as the wording of everything is OK I think, just up to us to not let dogs go without payment first.

As the rescue isn't a registered charity yet, who is responsible for paying the vet/kennel fees? It sounds like all those who hold a responsible position in the rescue need to understand good governance before they attempt to run a charity.

tbourner

Errata wrote: »

As the rescue isn't a registered charity yet, who is responsible for paying the vet/kennel fees? It sounds like all those who hold a responsible position in the rescue need to understand good governance before they attempt to run a charity.

It's a business at the moment, we have a business bank account in the name of the charity. Paperwork is in for status anyway just waiting, we have all the committee etc. set up but we obviously have to continue getting donations and doing fundraising while we're waiting, just have to be clear that we're not registered yet! Account is in founders name so she's ultimately responsible.

Savvy_Sue

tbourner wrote: »

It's a business at the moment, we have a business bank account in the name of the charity. Paperwork is in for status anyway just waiting, we have all the committee etc. set up but we obviously have to continue getting donations and doing fundraising while we're waiting, just have to be clear that we're not registered yet! Account is in founders name so she's ultimately responsible.

Is she the ONLY signatory?

One thing to be sure of is your liability. I work for a charity which is also a Ltd Co. That way no-one is PERSONALLY responsible if the whole thing goes down the tubes. Although the Directors could be liable for any mismanagement.

No time to post more now, but do head over to the Small Biz board and check out stickies for advice on starting and running a charity. It's not unlike running a business ...

scuzz

I always thought a donation was voluntary. Maybe it would be better to say there is an adoption fee, which would be compulsory. Once you get charitable status, I think you would be able to claim back the VAT on fees too. Could be wrong about the latter part.

Savvy_Sue

scuzz wrote: »

I always thought a donation was voluntary. Maybe it would be better to say there is an adoption fee, which would be compulsory. Once you get charitable status, I think you would be able to claim back the VAT on fees too. Could be wrong about the latter part.

Charities cannot automatically claim back VAT, and no-one can charge VAT unless they are registered for VAT, which at this stage would be unlikely. It seems like an unnecessary complication ...