Becoming a charity.

xsteele

My local allotment association wants to become a charity.

Whilst there is practical advice on the Charity Commisioners site, it says while there are advantages there are also disavantages but doesn't really go into them or give practical examples.

So if you run a small charity or have considered becoming a charity do you know what the advantages have been for you and are there any disadvantages?

Thanks for your help.

Lyn_Taylor

Hi there. I've got a little bit of info re becoming a charity as I'm considering doing this myself for a project I'm involved in. The main benefit is tax although I'm not too sure to what degree but I do know that, if people give donations in the form of a gift aid, then that is offset against tax. I was told by the CC that, when you apply, you need to have a minimum of £1,000 in a bank account and also have a minimum of 3 trustees (normally meetings are held once a month to discuss the charity and minutes taken). Also, if you are applying for grants, organisations tend to take you more seriously if you are a registered charity or in the process of applying for charitable status. It sounds complicated and I'm a bit of a novice myself in this but this is my understanding and I hope this helps! Good luck!

jmarko

Disadvantages are the administration side mainly and also potential trustee liability.

You should consult a suitably qualified charity solicitor.

jmarko

Savvy_Sue

jmarko wrote:

Disadvantages are the administration side mainly and also potential trustee liability.

You should consult a suitably qualified charity solicitor.

If you have a local CVS they should be able to give you a bit more advice - look at NAVCA to find yours. You can get insurance for trustee liability, I think, and there is a new setup called a CIC which might also be suitable for you.

Be aware that the new charities act may have made it more difficult to register as a charity: I think the intention was to tighten up the definition of public benefit - charities have to benefit other people, not just their members, I think.

The admin isn't, IMO, much more than 'best practice' once you're up and running. You have to file accounts, you have to have your accounts examined, you have to have a group of people (trustees) running the show and they ARE responsible for how the money is spent, actions take in the name of the charity etc.