Raising funds as a Consituted Community Group

Georgeporge79

Hello,
I have recently started 'sitting ' on the committee of a Constituted Community Group and have said I am up for taking on the role of treasurer. My first challenge is to oversee the raising of monies in order to pay a contractor to provide an ongoing service of benefit to the local community. Most of these will come through our Facebook group for publicity and then through SpaceHive. Occasionally people might give small cash donations or cheque.

I guess my straightforward question is do I use Paypal or gocardless (the two options from SpaceHive)? And, if paypal, what am I setting up as - an individual, I guess? Has anyone done this for a similar group and have any advice?!

Really want to contribute and help, but it's not my area of expertise!

Would be grateful for any help!
Thank you

Savvy_Sue

I've got no expertise with either of those, but please please please don't set yourself up as an individual. I am sure you are a person of the utmost probity, but find a way to do it so that the money isn't held in your name.

(My first act on taking over my latest treasurer's job was to change the bank account to one where we could insist on two signatories. Until then, only one had been required. The account had two people authorised to sign: one had just had a stroke and couldn't give a legible signature; the other was no longer on the committee and was nursing a spouse through their final illness. Less than ideal!)

Georgeporge79

Thank you for your advice. You've clearly had experience of the role. I'd certainly prefer not to!! Thanks again.

00ec25

in law you have set up an "unincorporated association". Any bank accounts it uses will be the names of real people, not in the name of the group, since the group is not a legal entity.

I would strongly urge you to open a separate bank account, do NOT use your own personal one! Talk to the banks and find out what they will charge for an account in the names of 2 people where payments require 2 signatories. You really do not want to leave yourself open to accusations over money gone missing if you are the sole signatory.

https://www.netlawman.co.uk/ia/unincorporated-associations


Gocardless will undertake its own due diligence when you set up with them and will check who is behind the bank account, hence much "safer" to have a separate account that can be easily explained.

I have no experience of SpaceHive

Savvy_Sue

00ec25 wrote: »

in law you have set up an "unincorporated association". Any bank accounts it uses will be the names of real people, not in the name of the group, since the group is not a legal entity.

I'm not entirely sure that's true (that it's not possible to have a bank account in the name of an unincorporated association). I'd have said that was precisely what the organisation of which I'm treasurer is. And the bank accounts are in the name of the organisation.

We have a constitution, and whenever we change accounts or signatories we must confirm there's a minute agreeing the change, and give a date for the meeting which agreed the change.

I'm sure the local Parent and Toddler group is the same (know the treasurer!)

00ec25

Savvy_Sue wrote: »

I'm not entirely sure that's true (that it's not possible to have a bank account in the name of an unincorporated association). I'd have said that was precisely what the organisation of which I'm treasurer is. And the bank accounts are in the name of the organisation.

We have a constitution, and whenever we change accounts or signatories we must confirm there's a minute agreeing the change, and give a date for the meeting which agreed the change.

I'm sure the local Parent and Toddler group is the same (know the treasurer!)

we are both "right"

the bank account can be called anything you want (eg mothers united ), but in law the person liable for that account is a real person since the unincorporated body does not exist in law

read the link:
"If an association has money, it will probably have a bank account. That will have been set up in law as an account in the name of two to four individuals. The bank will look to those people as individuals to run the account. Technically, they are trustees for their members, but the bank is not concerned with a beneficial interest. The same considerations apply whether contract involves a transfer of money or some non-monetary obligation."