Social Enterprise funded by Kickstarter-like campaign - best legal structure?

adamdynamic

Hello all and Merry Christmas!

Next year I'm going to kick off a project that will:

1) Raise funds via a kickstarter/crowd funding campaign (possibly more than £100k required)*
2) Use the money to perform a one-off project
3) Once complete, dissolve the company and donate any remaining funds to charity (e.g. NSPCC)

The project may need to pay for some personal expenses (e.g. travel of those involved) but will not pay any salary or dividend and anyone working with the project will be doing so on a volunteer basis.

In order to protect contributors (and myself) and to give the project credibility I want to give the project a 'legal identity' - can anyone give any guidance on the best form to take?

From research a company limited by guarantee seems to be the best form (as the project has no commercial objective) but I'd rather get as much guidance as possible before committing. Any input would be appreciated!

Thanks,

Adam

*easier said than done, I realise

paddyrg

Unless you're registering as a charity, I don't believe it makes a while heap of difference whether you're limited by shares or guarantee. You'll still have responsibilities as a director, and these probably include making plans for what to do if you don't reach your target amount (are donations all or nothing pledges, or if you raised 35% would you still proceed, or take money raised to fundraiser more, etc).

It needs thinking through and doing properly, as such it's worth talking to an accountant right now (well, maybe let's get Boxing Day out of the way...) as decisions made now may have implications, and the musings of a bunch of strangers on a forum doesn't mean a lot ;-)

Savvy_Sue

If you are publicising in advance which charity the surplus funds are going to, you should let them know in advance. And they will ask similar questions to those paddy mentions.

CKhalvashi

Savvy_Sue wrote: »

If you are publicising in advance which charity the surplus funds are going to, you should let them know in advance. And they will ask similar questions to those paddy mentions.

And certain charities have refused to accept funds,or their name being used, on this basis, despite the fact I was happy to keep a completely separate bank account for these purposes.

This includes the charity of my choice, which is a local charity for disabled children.