Can I use my Limited company to make fundraising for a charity purpose?

Jessica9_2

Hi all,

I have a limited company and I would like to equally make fundraising mainly for charity purpose.

Is it possible to do this through my limited company or do I need to paralelly set up a charity business? Or is it better to convert it to a Social Enterprise?

In fact I would like to do something like at knowhownonprofit(dot)org/people/employment-law-and-hr/copy_of_legal-requirements/216864545

Hi J,
Thanks for taking the time.
We are pioneering - again! Seems to be our thing! But we see no other SE doing what we want in terms of a coprorate structure so we will define it as we go along. To clarify:
Making money:
we have 2 or 3 or more profit-making activities,
. each activity could be a seperate division in one Ltd Co. (easier accounting administering etc)
. or each could be a seperate Ltd Co. (each more driven to succeed, so more profits)
Not decided yet. They exist to generate profits for the social purpose; I want to run them on a strict commercial business basis: books balanced - out to make money from the work; and all surplus profits go into the Social Enterprise causes. The more profit: the more social good we can achieve via the SE. May start as one Ltd Co. See how this goes then later split into 2 or 3 if justified
Social Enterprise - making change
The SE has a single cause that it is here for. But it is an ambitious cause for all ordinary people and will need to be financially and organisationally independent: not beholden any corporate, any pary, any governement. Independence is essential in order for the SE to be truly effective for people.
The entire group operation - one SE arm and one or more commercial arms will be accountable and strategically governed by the Trust Board.
But there is one further complication. Somewhere in or beside the SE organistation we have our own Charitable Foundation! The Foundation will also receive surplus profits and it's sole purpose is to support charitable causes in society mainly sponsoring one big charity each year. Not sure where this fits at this time and I'm looking at existing "Foundations" in large corporates to see what they've done. The profits all coming from the Group makes it important that the work of the Foundation is influenced by the direction of the Group but in no way will anyone dictate or expect anything in return from the charitable Foundation. My thoughts are that the Trust Board oversees the Foundation?
This is the ideal I am aiming for but we may have make-it-up along the way. That's fine by me. So many good things have been started on a shoestring, by the seat of the pants, and with the objective clearly known but how to get there not so clear! We are aiming to turn out to be one of those good things.
Regards
Dre

Will let you know who we are when we launch soon; keeping under wraps for now.
diagrammatically:
Ltd Co/s commercial operations --> generate surplus profits
all surplus profits --> funds several and all The SE projects and day to day operations
The SE also annually donates --> Our Charitable Foundation
Charitable Foundation sponsors one or more charities; one or more other SE's; donates in kind too;
think this covers it.
Regards
Dre

Thanks in advance for your help,

Jessica.

Ps : The fundraising will be worldwide.

Wywth

Jessica9 wrote: »

Hi all,

I have a limited company and I would like to equally make fundraising mainly for charity purpose.

Is it possible to do this through my limited company or do I need to paralelly set up a charity business? Or is it better to convert it to a Social Enterprise?

In fact I would like to do something like at knowhownonprofit(dot)org/people/employment-law-and-hr/copy_of_legal-requirements/216864545

Thanks in advance for your help,

Jessica.

Ps : The fundraising will be worldwide.

If you are the sole director & shareholder, you can use the company for almost anything you like (subject to the M&A)

However, the touble you will probably experience is finding anyone to trust you and give you their money as you could also trouser it with normal set up of a limited company.

Jessica9_2

I am definitively the sole director & shareholder.
My fundraising will be mainly an online fundraising :
For the transparency, I will display all money/donations that has been given on a website and give the option to additionally display the donators name.

Another issue is that I am not sure that donators can deduct their donations from their tax return since my company is a limited company.

Jessica9_2

What is a 'M&A'?

Savvy_Sue

Jessica9 wrote: »

My fundraising will be mainly an online fundraising :
For the transparency, I will display all money/donations that has been given on a website and give the option to additionally display the donators name.

See below, but if you're fundraising for an existing charity it's often simpler to use one of the online giving sites like Virgin or JustGiving.

Jessica9 wrote: »

Another issue is that I am not sure that donators can deduct their donations from their tax return since my company is a limited company.

Can I just check you are based in the UK? If you're thinking about the Gift Aid system, then only registered charities can claim Gift Aid. Donors only need to record donations on their tax return if they are higher rate taxpayers.

Owain_Moneysaver

Jessica9 wrote: »

What is a 'M&A'?

Memorandum of Association
Articles of Association

together form the company's 'constitution'

Jessica9_2

Savvy_Sue wrote: »

See below, but if you're fundraising for an existing charity it's often simpler to use one of the online giving sites like Virgin or JustGiving.

No, I will not be fundraising for especially a charity but for communities and causes : the potential donors will be based worldwide (online fundraising).

Savvy_Sue wrote: »

Can I just check you are based in the UK? If you're thinking about the Gift Aid system, then only registered charities can claim Gift Aid. Donors only need to record donations on their tax return if they are higher rate taxpayers.

Yes, I am UK based. I am new in charity so sorry but what is exactly a Gift Aid?

Jessica9_2

Owain_Moneysaver wrote: »

Memorandum of Association
Articles of Association

together form the company's 'constitution'

I am a bit confused since at the same time I am the sole director & shareholder. Where can I find a template of a M&A that will fit with my whole activities.

Ps : Your link is related to companies limited by guarantee.

paddyrg

Whoa stop a second - are you ready for this?

If you have a limited company, you already have an M&A. You can't form one without. Are you registered with companies house? As the sole director it is important to know this stuff!

Annisele

Jessica9 wrote: »

I am a bit confused since at the same time I am the sole director & shareholder. Where can I find a template of a M&A that will fit with my whole activities.

I agree wholeheartedly with paddyrg - you do look as though you're trying to run before you can walk!

If you have a company registered in England and Wales, you already have an M&A - if you don't have one, then you don't have a company. You're required to run your company in accordance with the M&A you've got, so you really need to understand it.

When I set my company up my accountant went through my M&A with me. I supposed technically it might be a legal issue - and so a solicitor could advise - but most accountants will have a very good idea of the basics.

There's an explanation of Gift Aid here.

Are you sure you wouldn't be easier / better all round to just run a normal profit making company and then making donations to registered charities?

Jessica9_2

paddyrg wrote: »

Whoa stop a second - are you ready for this?

If you have a limited company, you already have an M&A. You can't form one without. Are you registered with companies house? As the sole director it is important to know this stuff!

Obviously, I have one (I had created the company using an agent) but I thought that I have to adjust it according to the fundraising activity.Previously, I used my company (created in 2009) to work as a contractor in finance and it.