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.
Sported Governance structures
Sported
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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
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)
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
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
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.