Possible structures for the Club
This page is a brief summary of possible structures for the Club.
Before we start, it is very important to note that "charity" is a status, applied to an organisation which meets the definition of a charity in law. It is not a type of legal form or structure in and of itself, which is why it is not in the list below.
Company limited by guarantee (CLG)
Recommended for the Club. Limits liability for both the General Committee AND the Membership. Very "normal" set-up, much more common than being unincorporated. Plenty of example constitutions available. If the Club ever qualified for charitable status, it would be possible to stay as a CLG (ie no need to change structure again)
Unincorporated Association
The "no change" option. Exposes the General Committee to significant risk if something goes wrong that is not covered by insurance, and current Rules and Bye-laws have no obvious protection for the Membership either.
Definitely not recommended!
Company limited by shares (CLS)
Very unusual for a not-for-profit. Difficult to see how this would work in a situation where the Membership is fluid and the number changes each year. Same benefits as a CLG, ie limited liability, well known form.
Not recommended.
Industrial and Provident Society
Not suitable - nearly always used for Housing Associations, complex and expensive to set up.
Limited Liability Partnership (LLP)
Not suitable - these are where the partners all make a profit, eg a law firm
Community Interest Company
Not suitable - these are designed for situations where the General Committee can be paid for their roles.
Community Amateur Sports Club (CASC)
Not suitable on its own - not an incorporated legal form, therefore still exposes the General Committee and Membership to risk. A useful status, though, as it's recognised by HMRC. It would be good to aim at being able to register as a CASC. A bit of work needed first to enable the Club to demonstrate that there is enough sporting activity to meet the criteria.
Registered Society (Community Benefit), Charitable Incorporated Organisation (CIO), Charitable Trust, Charitable Company
None of these are possible - the Club does not yet meet the legal definition of a charity.
Questions? Comments? Other suggestions?
Please note that it might take us a few days to get back to you.
Everyone in the Working Group has busy day jobs, and is giving their time as volunteers.
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