Happy New Year - our first newsletter of 2021! Throughout this year we will continue to bring you news and developments relating to the charities sector.
What is so great about being a charity?
- Some charities find that they have greater access to grant funding compared to non-charities.
- A charity receives preferential tax treatment, including tax relief on most types of income (provided the money is used directly for charity’s purposes), relief from business rates charge and access to the HMRC gift aid scheme.
We are not a charity at the moment, we run our pre-school as a business...
Once the pre-school becomes a charity, it is subject to charity law and there will be certain restrictions imposed on the charity, such as a payment to a trustee/connected person (e.g. as an employee of the pre-school), undertaking non-charitable activities or trading, etc. None of these reasons should be a barrier to register the pre-school as a charity, so we would recommend taking legal advice before proceeding.
We are an unincorporated charity registered with the Charity Commission, but why should we incorporate?
An unincorporated charity does not have a separate legal personality and therefore anything which it does is through its trustees e.g. entering into contracts and holding property. This, unfortunately, creates personal liability for the trustees if the charity is not able to meet its liabilities, either through its assets or insurance.
The ACS pre-school is registered with the Charity Commission and is established as an unincorporated charitable trust. The ACS pre-school has entered into a service contract with Edmund Electricals for the supply of electrical services. The contract makes clear that the contracting party is Joe, Fred, Sally and Pippa as trustees of ACS pre-school. If the trustees are unable to meet their obligations under the contract then Joe, Fred, Sally and Pippa would be personally liable to Edmund Electricals.
If, however, ACS pre-school had registered as a charitable incorporated organisation or a charitable company (see below), then the contract would be in the name of ACS pre-school. This would allow the trustees to reduce their personal liability (unless it was found that the trustees had not acted in the best in interests of the charity).
What if we don’t want to be a charity?
Of course, you may have already decided that you do not wish to run the pre-school as a charity, but still wish to create a robust structure for your organisation. Other structures that you may wish to explore are a private company limited by guarantee or shares or a community interest company.
Local authorities should be wary of reserving contracts for local suppliers, as recommended by Procurement Policy Note (PPN) 11/20. Other contracting authorities may want to maximise their use of this
Most housing practitioners have perhaps been waiting for this news since the latest lockdown was announced by the Prime Minister on 4 January 2021.
Climate change and biodiversity is an area where significantly faster changes are needed on a global and local basis.
Chris Lloyd Smith, Adrian Leonard and Lisa Whitehouse discuss the planning opportunities available to owners of businesses and how to prepare for unforeseen events.
In their 3rd podcast of the series, Chris Lloyd-Smith and Maria Ramon discuss a number of problems with and difficulties that can arise in mediation and the mechanisms they use to overcome them.
Our previous round-up began by sharing the news that two vaccines had shown very promising test results. Here we are, not even a month later, and the first vaccines have already been administered!
The Covid-19 crisis has demonstrated that there is great resilience and innovation in the housing sector across Greater Manchester, it has also brought shortfalls and other priorities sharply into foc
For part 5 in this series of short podcasts, Chris Lloyd-Smith interviews associate Kadie Bennett on how she has been coping during these unprecedented times.
The first report of Donna Ockenden and her team into the review of maternity services at The Shrewsbury and Telford Hospital NHS Trust has been published today.
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