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Sported Governance structures

Sported

Created on December 3, 2024

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Transcript

Getting it right at the start

More on some common structures and status

Charitable status
Charitable Incorporated Organisation (CIO)

Incorporation - what is it?

Community Interest Company (CIC)

Do we need a legal structure?

CASC - Community Amateur Sports Club status
Company limited by guarantee
Unincorporated association

More on legal structures

Why you need a legal structure

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.

Does this mean we need to register as a charity?

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.

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

Watch the full webinar here
Community interest company
  • 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

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

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

Office of the reguator of CICs

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

Community Amateur Sports Club (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

Gov.uk guide on CASCs including tax infomration

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

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

Charity Commision guide to CASCs

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

What is incorporation, and do you need it?

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.

Unincorporated association
  • 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

Read more in this article from Morton Fraser.

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

Watch the full webinar here
Charitable Incorporated Organisation
  • 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

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

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

Charity Commission - Setting up a new charity

Charitable status

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

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

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.

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