…that if your group is solely for the benefit of the public and has annual income of over £5,000 per year, of whatever kind, and regardless of how it is spent, it MUST register as a charity?
BAVO can help your group to register as a charity, and even reduce the liability of your committee/board at the same time by helping you to register as a Charitable Incorporated Organisation (CIO).
If your group owns property or employs staff this could be the wisest choice of legal structure. BAVO staff will discuss the options with you and support you throughout the process, providing guidance and options that are in the best interests of your organisation.
An incorporated organisation has a legal identity of its own. In other words, it’s a corporate body that can legally act as a single entity. This means that it can own property, enter into contracts and employ people in its own name. On the other hand, an unincorporated organisation, remains a collection of individuals, and if it wants to own property and so forth, it must rely on individuals to do so on its behalf.
Incorporation also means the liability of the organisation to third parties is limited to the total amount of the members’ guarantees or share capital, depending on the nature of the organisation. This affords protection to those running the organisation and its members in most cases.
Learn more about Charitable Status on Knowledge Hub
