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Becoming a registered charitable company & further requirements: it is a great testament to the generosity of the people of the UK that we give so much to charity, and that so many think seriously about their organisation becoming a charitable company. It is important, however, that charities are properly regulated. They exist on kind donations from the public and businesses, who have a right to expect that their money is being used properly, so it is vital that the charity should be properly set up and transparently managed. To be sure that your charity is on the correct footing, you should consider working with an experienced partner like Coddan Ltd.
Charity company formation involves some key decisions early on in the process. One of these is to decide on the charity's legal structure. In 2012, the government launched a new structure for charities called a Charitable Incorporated Organisation (CIO). This was designed to eliminate the need for charities to be the subject of so-called "double regulation" reporting both to Companies House and to the Charity Commission.
The CIO offers other benefits of an incorporated entity, including its trustees being protected by limited liability. The Charity Commission itself has stated that this structure may not be suitable for every charity. Indeed, some advisors are recommending that charities continue to be set up as a charitable company limited by guarantee. Certainly, it is a new structure and Coddan Ltd will be happy to guide you through the pros and cons of all your alternatives.
Becoming a charity company can obviously be quite complex but your obligations do not end there. When you start your charitable company you will have to set out your aims, objectives and governance in your governing documents. You will also have to appoint two trustees. Your charity needs a minimum of two trustees, but more is preferable. It is ideal to have trustees with a professional background in the area they are responsible for, such as a businessperson in charge of marketing, and so on.