Sported Governance pages

Basic governance requirements

What is governance?

Lifecycle of a group

setup

run

evolve

close

Basic governance requirements

Getting it right at the start

Unincorporated association

CASC - Community Amateur Sports Club status

Community Interest Company (CIC)

Company limited by guarantee

Do we need a legal structure?

Charitable Incorporated Organisation (CIO)

Incorporation - what is it?

Charitable status

Board

Legal matters

Summary

Group structure

Quiz

Introduction

Governing documents

Governance

Sported guides overview

More on legal structures

This unit:

More on some common structures and status

Please review this course

Setting up

Trustees

Responsibilities

Board

Legal matters

Summary

Group structure

Quiz

Introduction

Governing documents

This unit:

Sported guides overview

Please review this course

Governance

Companies

Charities

Board

Legal matters

Summary

Group structure

Quiz

Introduction

Governing documents

NCVO webinar on writing and amending your governing document

Do you know who is responsible for maintaining these documents within your organisation?

This unit:

Please review this course

Sported guides overview

Governance

Sported policy templates

Insurance

Safeguarding policy

The Charity Governance code is a useful tool to help small charities and other not for profit organisations in England and Wales

Board

Legal matters

Summary

Group structure

Regional differences In the UK Charity law is devoved, but tax law is not. This paper has a lot more information, or contact Sported for more help on this.

Quiz

Introduction

Sported guides overview

Governing documents

Governance

This unit:

Which policies you need depends on lots of things including your legal structure and the activities you deliver.

Please review this course

For every organisation, whether a company or a charity, there are legal policies and requirements.

Joe Cartwright and Jude Toasland from the NSPCC Child protection in sport unit presented this webinar for Sported members

Hop over to the Sported Hub for more on Safeguarding policies and how to get this right for your group

Take a look at this Charity Commission guide

This short presentation outlines why you need insurance

Take a look at this guide on the Sported Hub.

Insurance

Your group will need to have insurance set up in order to operate safely.

The Memorandum is a short document which confirms that the subscribers wish to form a company and agree to become a member of the company. If the company is limited by shares they agree to take at least one share in the company.

All companies, including CICs require two governance documents: The Memorandum of Association and the Articles of Association. These documents set out the rules and conditions of the CIC.

Memorandum of Association

Reporting

Rules

Directors' duties

Dividend and interst cap

Asset lock

Download a template for Articles of Association

Articles of Association

All companies, including CICs require two governance documents: The Memorandum of Association and the Articles of Association. These documents set out the rules and conditions of the CIC.

You need a base level of govenerance to run a group safely. Sport England have developed some guidance you can look at, which outlines their level of Tier 1 governance.

Four key elements

• Democratic
• Transparent
• Representative
• Non profit

Revised code for Sports Governance

Required governance

In this video, Sported's Paul Steel explains the four basic elements of good governance which funders look for. Click here to watch the full webinar.

Take a look at the detailed information by clicking on each structure on the main page.

Does this mean we need to register as a charity?

To protect your committee members and insulate individuals from financial risk, you will need to incorporate your organisation. When you incorporate, you'll need to choose a legal structure.

But what do they all mean?

No - not all community groups and beneficiary organisaitons are charities. There are other options which may suit your group better.

Why you need a legal structure

Watch the full webinar here

For a more detailed view, look at this guide from Charity Excellence

• members liability limited by guarantee
• can pay dividends and directors, but must benefit the wider community
• assets are locked in for community benefit
• cannot get charitable tax benefits, but can convert to a charity

Office of the reguator of CICs

Community interest company

A limited company structure for social enterprises with a focus on community benefit.

In this webinar, Sported's Paul Steel explains some of the most common legal structures.

Gov.uk guide on CASCs including tax infomration

England Rugby guidance on the pros and cons of becoming a CASC

• lighter reporting responisbility compared to charities
• some tax benefits, e.g. can claim Gift Aid

• has conditions e.g. membership must be open to the whole community

• a CASC cannot also be a charity

Charity Commision guide to CASCs

Community Amateur Sports Club (CASC)

This status allows grassroots sports clubs to benefit from favourable tax rates, including claiming Gift Aid.

In this clip, Club Development Consultancy explain the pros and cons of incorporation

What is incorporation, and do you need it?

Incorporated or unincorporated group?

This is the first question you must answer. If your group has come together and has no legal strucutre, is not registered as a company or charity, it is unincorporated. Incorporated or Unincorporated group? In this clip, Club Development Consultancy explain the pros and cons of incorporation

An unincorporated group is a collection of individuals who are legally liable for any debts the group incurrs. So if you don't want to expose your Committee members to personal risk then YES - you do need to incorporate.

Read more in this article from Morton Fraser.

• simple to set up - no reporting duties or restrictions
• no special tax benefits
• no separate legal status, so committee members could be personally liable for debts
• assets are held by individuals so have to be transferred if that person leaves

Unincorporated association

A group of individuals who have come together to run a club or organisation.

The Charity Commission have a guide to what is involved.Companies are subject to company law, and have a Board of Directors.

Part of this role is to run and attend board meetings, where decisions about your organisation can be discussed and made.Sported volunteer consultant David Williams has some advice on running effective board meetings.

Guidance for non-charity companies

Charity Commission guide

Trustee/Director responsibilities

The exact role and responsibilites will vary, depending on the structure of your group.Charities have a Board of Trustees.

• Trustees and Directors plan how the group will achieve its goals
• Take decisions and vote
• Work within the organisation's constitution
• Use their skills to benefit their community

• what the charity is set up to do
• what it can do to carry out it's purpose
• who will run it
• rules around meetings and Trustees
• what happens if the chairty closes

Charity Commission: How to write your Governing Document guide

Constitution

A Constitution is the Governing document of a charity, which legally, must be followed. It should include:

Watch the full webinar here

For a more detailed view, look at this guide from Walker Morris

• members liability limited
• only needs to register with the Charity Commission
• not a company, so not subject to company law
• Foundation CIOs: decisions are made by Trustees
• Association CIOs: wider membership has a role in decision making

Charity Commission - Setting up a new charity

Charitable Incorporated Organisation

A legal structure for non-profits and charities offering a separate legal personality, limiting liability for members and trustees.

Read more on what your governing document should contain with this advice from the NCVO

Registering as a charity is not a legal structure, so charities can be unincorporated.To have a separate legal status, a group still needs to choose a suitable structure. Becoming a Charitable Incorporated Organisation (CIO) may be suitable.

For a more on which charitable structure to choose, see this guide from the Charity Commission

Charitable status

If your organisation has charitable aims, you can register with the Charity Commission.

Think about how you will recruit people safely as part of your Safeguarding Policies and Procedures (e.g. obtaining references, checking certificates, background checks)

conflicts of interest

skills and experience

representation

roles and responsibilities

safeguarding

Start to define roles such as chair, treasurer, secretary, safeguarding officer Draw up a list of general and specific responsibilities Be open and honest with prospective Trustees, nobody likes to be misled on the level of time commitment.

What skills do you need to help you run the activities/group (e.g. fundraising, marketing, safeguarding)? Check out this skills audit to help you work out what your organisation needs on its board

Try to avoid as much as possible! Minimise the amount of family members/ individuals with personal relationships Minimise conflicts of interests or duality of interests, and keep a record of any conflicts of interest

Consider the range of skills and types of people represented on your board. Do you have community links and youth representatives (if appropriate)? Try to create a diverse and representative group, not an echo chamber.

Trustees

Lawbite have more details on the pros and cons of becoming a company ltd by guarantee.

Company limited by guarantee

A company without shareholders or shares. Typically used by non-profits and charities, this type of company is controlled by guarantors (members), who guarantee a nominal sum of money to the company in the event of its becoming insolvent or winding up.

Check out this factsheet from Action Together on setting up your board of Trustees/Directors

passion

size

legal

skills

factsheet

Are your Board members invested in your group? Passionate about the changes your organisation wants to make? Your board needs to share a vision.

Check out this video on the legal requirements for setting up a board of trustees

Ideally around 5-9 members, having an odd number on your board will avoid a deadlock when voting.

Building your board

Think about the skills you'll need present. You can use this skills audit template to help balance your board's skill set.