Non Profit Making Organisations - Help Please

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in AAT member discussion
Please can anyone help?
I have been approached by a teacher at my daughters school, who runs an after school club, for advice.
The club has just been set up with a grant, and she wants to know should she register the club as a charity or a company Ltd by guarantee? Having only worked in Ltd companies I am sure not of the implications for these type of organisations.
The annual turnover is under £12,000 and there are two members of staff on the payroll. At the moment, it is not registered as anything. Help please, thanks.

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Non Profit Making Organisations - Help Please

    Hi Lisa
    I am the Treasurer of my local pre-school/nursery. We are a registered charity and in April this year took the decision to incorporate after having sought professional advice. The main reason for doing this was to give the members of the committee limited liability if anything ever went wrong. However I am fairly sure that when the new charities bill becomes law very soon, it will not be possible for charities to be limited companies. Instead, they will be able to apply to become Incorporated Charitable Organisations, which will still provide limited liability, but will mean that everything is done under charity law rather than company law. I would wait a few weeks until this law is passed, otherwise you may incorporate and then find that you then have to become an ICO instead.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Non Profit Making Organisations - Help Please

    Thanks for the advice Paul, I will look into this.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Non Profit Making Organisations - Help Please

    Hi Lisa
    Please feel free to contact me via private messages and I would be happy to give you my email/mobile number if you wanted to discuss this further.
    Paul
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Non Profit Making Organisations - Help Please

    If the officers are worried, there is a (fairly?) cheap directors and officers insurance that you can take out in situations like this, which will limit their personal liability.

    Claudia
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Non Profit Making Organisations - Help Please

    Hi Claudia,
    Could you give me any further info on this please?
    Thanks
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Non Profit Making Organisations - Help Please

    Hi Lisa - nothing meaningful I am afraid, except that it does exist! There are specialist insurance brokers called Michelle Morton or something who do after school clubs and the like - they would know about it I am sure.

    Sorry to be quite so useless, but I am having to trawl my brain back about 4 years when I was on a committee for setting up an after school club - wonder why they wanted me :lol: but then I moved!

    Have you tried google?

    Claudia

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