Theme: Becoming a Charity/CIO, and more about charitable status
What do we want from HSF/what can we do for HSF
Next meeting
Attendees
James - Swindon
Jess - Swindon
Tim - EE (CIO)
Khurram - Teeside
Russ - HSF, LHS, LHL, EMF
Samuel - Brighton
Sandrina - EE
George and Jay - Chelts
James - Chelts
Phil - Chelts
Theme: Becoming a Charity/CIO and more about charitable status
Disclaimer: This is not legal advice.
Khurram (Law background, not qualified)
Creating a legal entity: You are creating a legal person, with rights, privileges, etc…
If you become a charity, starting point is charitable purposes, there are 13, of which the following are most relevant.
The advancement of education
The advancement of citizenship or community development.
The advancement of the arts, culture, heritage or science
Any other charitable purposes.
The charity commission can create new charitable purposes within regulations.
i.e. they can say, actually what you’ve said is acceptable.
There is a further test, public benefit test to become a charity.
A charity’s service don’t have to be free, they can charge reasonable costs for their services.
Application process asks:
What are your charitable purposes
What the public benefit is
How you intend to achieve this.
Charity structures:
CIO - Charitable Incorporated Organisation
CCLG - Charitable Company Limited by Guarantee
With a CCLG you are reportable under Charity and Company law, so 2 sets of accounts.
You also have to file a trustees report of what we’ve done.
CIO: Existing Hackspace, would have to transfer all assets into the CIO, you can’t just become it. etc…
CCLG: You can turn a CLG into a CCLG to add the status of Charity to their existing structure, the.
You can Go CCLG > CIO after.
Benefit of CIO is one set of accounts to file.
Charities for director/trusties:
Ensure your charity is carrying out its purposes for the public benefit
Comply with your charity’s governing document and the law
Act in the best interest
Manage your charity’s resource responsibly.
Act with reasonable care and skill
Ensure your charity is accountable.
Personal liability:
Director/trustees, you can be held personally liable if you make enough of a mistake, really deliberately malicious.
Benefits for being a charity:
GiftAid, initial membership fee isn’t applicable, has to be the donation.
There are ways to split it by itemising it.
80% mandatory business rate relief on larger properties.
20% discretionary relief available too for business rates available.