Setting Up a Non-Profit

At DTM Legal, we offer specialised legal services to guide you through the intricate process of setting up a non-profit organisation. Whether you’re looking to establish a charity, a community interest company, or any other type of non-profit entity, our experienced team is here to provide expert assistance every step of the way.

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Understanding Non-Profit Structures

Choosing the right structure for your non-profit is crucial. Here are the main types of non-profit organisations we can help you establish:

Charitable Incorporated Organisation (CIO):
- A popular choice for new charities.
- Combines the benefits of a corporate structure with charitable status.
- Limited liability for trustees and members.
- Ideal for charities that need a corporate structure but wish to avoid the administrative burdens of dual registration (CIOs are registered with the Charity Commission but not Companies House).
Charitable Company (Limited by Guarantee or Shares):
- A corporate body registered both with the Charity Commission and Companies House.
- Limited liability for trustees (directors) and members/shareholders.
Community Interest Company (CIC):
- A body corporate registered with Companies House.
- Suitable for social enterprises that want to use their profits and assets for the public good but do not wish to register as a charity.
- Regulated by the CIC Regulator to ensure they operate for the benefit of the community.
- Provides flexibility in terms of governance and funding.
Unincorporated Association:
- A simple structure without the need for registration (unless the organisation is a charity and meets the requirements for registration with the Charity Commission).
- Suitable for small charities with low income and straightforward activities.
- No limited liability, so trustees are personally responsible for any debts or obligations.
Trusts:
- Governed by a trust deed, suitable for charities managing assets or property.
- Trustees have control over assets and must act in accordance with the trust deed.
- No limited liability, so trustees are personally responsible for any debts or obligations.

Considerations for Choosing the Right Non-Profit Structure

Selecting the appropriate non-profit structure is a critical decision that impacts your organisation’s operations, governance, and legal obligations. Here are some key considerations to help you choose the right structure:

Mission and Objectives:

What are your organisation’s primary goals and activities?
Consider how each structure aligns with your mission and the types of activities you will undertake.

Size and Scope:

How large do you expect your organisation to grow?
Smaller organisations may benefit from simpler structures like Unincorporated Associations, while larger ones might need the formal framework of a CIO or Charitable Company.

Liability:

Do you want to limit the personal liability of your trustees or members?
Structures like CIOs and Charitable Companies offer limited liability protection.

Regulation and Compliance:

Are you prepared to meet the regulatory requirements associated with your chosen structure?
Some structures, such as Charitable Companies, require dual registration and compliance with both charity and company law.

Funding and Fundraising:

What types of funding do you plan to pursue?
Certain structures may be more appealing to donors and grant-makers. For example, charitable status can enhance credibility and access to funding opportunities.

Governance and Management:

How do you plan to govern and manage your organisation?
Consider the governance requirements and flexibility of each structure. For instance, CIOs provide a streamlined governance model, while CICs offer flexibility for social enterprises.

Tax Considerations:

Charitable status can provide tax advantages such as relief from income tax, capital gains tax, and VAT exemptions.
There are tax benefits to specific structures and the tax implications can be significant.

The Process of Setting Up a Charity

Setting up a charity involves several key steps, each requiring careful attention to detail to ensure compliance with legal requirements. Here’s how we can assist:

Initial Consultation and Advice:
- We will discuss your charitable objectives and advise on the most suitable structure.
- Guidance on the legal requirements and documentation needed.
Drafting Governing Documents:
- Preparation of a constitution, trust deed, or articles of association, tailored to your charity’s needs.
- Ensuring that the governing documents comply with legal standards, Charity Commission requirements and best practices whilst reflecting the aims and operational intentions of your organisation.
Charity Commission Registration:
- Assistance with the application process for registration with the Charity Commission.
- Ensuring all required information and supporting documents are accurately submitted.
- Liaison with the Charity Commission to address any queries or concerns.
Compliance and Regulatory Advice:
- Ongoing support to ensure your charity complies with legal obligations.
- Advice on governance, financial reporting, and risk management.

Benefits of Working with a Solicitor

Partnering with DTM Legal offers numerous advantages:

Expertise: Our solicitors have extensive experience in charity law and non-profit structures, ensuring you receive knowledgeable and practical advice.
Efficiency: We streamline the process, handling complex paperwork and legal requirements efficiently, saving you time and effort.
Compliance: We ensure that your non-profit meets all legal and regulatory requirements, reducing risk to yourself and the organisation.
Peace of Mind: With our support, you can focus on your charitable mission, knowing that the legal aspects are in capable hands.

Timeframes and Costs: Tailored to Your Needs

The time required to set up a non-profit can vary significantly depending on the complexity of your organisation and the structure you choose. Factors such as the preparation of governing documents, the registration process with the Charity Commission, and any additional regulatory requirements all influence the timeline.

To ensure a smooth and efficient setup, we recommend contacting the DTM Legal team to discuss your specific requirements. During this initial consultation, we can provide an estimate of the timeframes involved and outline our fee structure. Our goal is to provide transparent and competitive pricing, tailored to the needs of your non-profit organisation.

Get in Touch

To learn more about how we can support you in establishing a successful and compliant non-profit organisation, please contact us today. Our team is ready to provide you with expert advice and guide you through every step of the process.

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Alison Brennan