Finding a structure to suit your group Davina Key, Locality Manager

1. Finding a structure to suit your group Davina Key, Locality Manager David White, Community Development Worker WCAVA North Warwickshire Contact: 01827 718080 Workingfor a strongerVoluntary and Communitysector in Warwickshire

2. WCAVA SERVICES • Governance advice/trustee support/attend meetings • Funding options/plans/writing funding applications • Networking - VAN Forums and fundraising forums • Business planning • Quality assurance • Community Accountancy • Volunteering • E-Grapevine, WCAVA Connect Workingfor a strongerVoluntary and Communitysector in Warwickshire

3. Structure options: • Unincorporated Organisation • Company Limited by Guarantee • Charitable Incorporated Organisation (CIO) Workingfor a strongerVoluntary and Communitysector in Warwickshire

4. Unincorporated Association (small charity) May be suitable to establish a small charity where the following apply: • Annual gross income will remain under £5,000 • It has a membership • The charity trustees are to be elected by members • The objects of the organisation are carried out wholly/partly by, or through, its members • The charity neither owns a building nor employs people Workingfor a strongerVoluntary and Communitysector in Warwickshire

5. Unincorporated Association (small charity) • Governing Document: Constitution or ‘rules’ • Must have at least 3 trustees – segregation of duties • Must have a bank account • Must have necessary policies & insurance • Constitution usually allows trustees to take out indemnity insurance Workingfor a strongerVoluntary and Communitysector in Warwickshire

6. Unincorporated Charity Charity’s with gross annual income of £5,000 and above MUST register with the Charity Commission Need to use Charity Commission model Constitution You need to complete an annual return form every year if you have income of more than £10,000 but less than £25,000 £25,000 up to £500,000 – Annual return form, Trustees Annual Report (TAR), accounts and examiner's report, report serious incidents Workingfor a strongerVoluntary and Communitysector in Warwickshire

7. Charitable Company (Company limited by guarantee and registered charity • Memorandum and articles of association create a company • Governed by: Directors (company) & trustees (charity) • Company is a legal person separate from its members and directors Workingfor a strongerVoluntary and Communitysector in Warwickshire

8. Charitable Company • Appropriate if: • The organisation is to be quite large • It will have employees • It will deliver charitable services under contractual agreements • It will regularly enter into commercial contacts • It will be a owner of freehold or leasehold land or property Workingfor a strongerVoluntary and Communitysector in Warwickshire

9. Charitable Company • The directors are agents of the company and are not normally liable personally for its debts • Company is a legal person separate from its members and directors • Company will have limited liability (nominal amount, eg £5) • Subject to company law as well as charity law • Charitable companies are not commercial companies Workingfor a strongerVoluntary and Communitysector in Warwickshire

10. Charitable Incorporated Organisation (CIO) • A CIO is: • a new legal form for a charity • an incorporated form of charity which is not a company • registers with the Charity Commission and not Companies House • Is only created once it is registered by the Commission • Can enter into contracts in its own right and its trustees will normally have limited or no liability for the debts of the CIO Workingfor a strongerVoluntary and Communitysector in Warwickshire

11. Charitable Incorporated Organisation (CIO) Benefits of a CIO: Members and trustees are usually personally safeguarded from the financial liabilities the charity incurs Charity has a legal personality of its own Able to conduct business in its own name rather than the name of the trustees Simpler to set up and manage than establishing a charitable company Workingfor a strongerVoluntary and Communitysector in Warwickshire

12. Charitable Incorporated Organisation (CIO) Just some important differences: All CIOs will have to register with the Commission, regardless of their income, even if they have an income of less than £5,000 CIO can’t be an exempt charity All CIOs will have to submit an annual return and accounts to the Charity Commission regardless of income Insolvency law applies to CIOs Workingfor a strongerVoluntary and Communitysector in Warwickshire

13. Issues unincorporated Charities need to consider: • CIO will be a new legal entity with a new register charity number • Unincorporated charities with property (land or investments) with restrictions on it being spent as income, need to contact Charity Commission before setting up as a CIO • Must produce accounts under charity law Charitable Incorporated Organisation (CIO) Workingfor a strongerVoluntary and Communitysector in Warwickshire

14. For more information: David or Davina at the North Warwickshire office. Tel: 01827 718080 Contact our Community Accountancy Service for help with your finances. Call: 01827 721223 Workingfor a strongerVoluntary and Communitysector in Warwickshire

15. Are you Fit for Funding? • Do you have a constitution or set of rules? • Is there a strong management committee? • Do you have robust financial systems in place? • Have you managed funding in the past? • Do you know what you need funding for? Workingfor a strongerVoluntary and Communitysector in Warwickshire

16. Documents, Policies and Requirements • Is your Governing document ‘fit for purpose’? Does the project you want to deliver meet the aims and objectives of your Governing document? • Is the Equal Opportunity Policy up to date and appropriate? • Is the Child Protection Policy valid, CRB Checks regularly carried out and up to date? • Do you have a Vulnerable Persons Policy? Workingfor a strongerVoluntary and Communitysector in Warwickshire

17. WHY A CHARITY NEEDS INSURANCE – basic considerations. Trustees duty to protect theircharities assets Certain types of activity where insurance is required by law. • Types of insurance that might be needed: • Building and contents insurance • Public liability • Events insurance • Trustee liability

18. Good Idea or Real Need? • So you’ve got a good idea, but is it a real need? • How can you demonstrate the project will make a real difference to peoples lives? • Is there a similar project nearby? • Have you visited other similar projects to see what worked and didn’t work for them? Workingfor a strongerVoluntary and Communitysector in Warwickshire

19. So what’s next?... • When you have: • The appropriate documents, policies and procedures in place • You can demonstrate a need for your project • You have quotes for equipment or specialist services you will need to buy in • Your finances are straight(Speak to our Community Accountancy Service for help: 01827 721222) • You’re ready to look for a funder... Workingfor a strongerVoluntary and Communitysector in Warwickshire

20. Ready, Steady... • Funders will need to know: • What you want to do • How you’re going to do it • Why the project is needed • When you are planning to deliver it, and how long it will last • Where the project will be delivered Workingfor a strongerVoluntary and Communitysector in Warwickshire

21. Go... • Search our Funding Portal for funding opportunities • Contact your local WCAVA office for advice and support • Sign up to E-Grapevine to keep up to date with the latest funding news • Check the local press for stories on groups who have received funding and funding news flashes Workingfor a strongerVoluntary and Communitysector in Warwickshire

22. Insurers: Keegan and Pennykid Insurance Brokers Tel: 0131 225 6005 Website: www.keegan-pennykid.com Aon Charity Assurance Tel: 0845 740 2003 Website: www.charities.aon.co.uk M C Ladbrook Tel: 01909 565 858 Website: www.ladbrook.co.uk Endsleigh Tel: 01242 866906 Website: www.endsleigh-business.co.uk Workingfor a strongerVoluntary and Communitysector in Warwickshire