Can I pay myself a wage from a non profit organisation?

[Jade Kinsella]

So some people may probably think.. You don't know anything about what you want to do.. This is why I'm here. I'm hoping one of you lovely lot can help me out.

My husband and I have been talking about starting up a "charity" I use quotation marks because a charity may not be the correct word!

The organisation would raise money for children who need operations, equipment or care to better their lives. In order to make money We would host company fund raisers, accept donations and grants.

We would like to help the families by organising benefits as well donating some money towards thier cause.


My husband is currently a scaffolder and he will continue that as his full time job for now. I will be putting all my effort and full time hours into hopefully making the organisation successful and continuing to run it full time. From what Iv researched if we are a non profit organisation then we don't have to pay tax on donations and we can claim gift aid... Is this correct?

My other question is am I allowed to pay myself a wage? If so what would be considered a reasonable amount. My husband would eventually like to run the charity alongside myself but until we were running successfully he couldn't afford to leave his job

Can someone please explain to me in simple terms what would be the best type of organisation to start and if I can make a living from it. I'm not trying to be a millionaire I just want to help children and pay myself a wage doing so.

Thanks in advance. I appreciate any advice.


**any money raised on behalf of a specific child at a benefit would be donated to the charity in the event of a death prior to receiving the operation, equipment or care**

 

[Alan]

Yes, you can be paid a Salary is you are not a Trustee. If you are a Trustee you can be paid for services if those services are beneficial to the charity -> https://www.gov.uk/government/publi...ses-and-payments#paying-trustees-for-services

What reasonable? What ever is a reasonable amount for the job in hand. Imagine you had to recruit someone to do the admin tasks, then that is the rate.

 

[Jade Kinsella]

If I am not a trustee will I still "own" the organisation?

I thought if I wasn't a trustee that someone else would be doing the decision making and controlling what happens within the business, who we help how we help etc

 

[Scalloway]

If I am not a trustee will I still "own" the organisation?

No

I thought if I wasn't a trustee that someone else would be doing the decision making and controlling what happens within the business, who we help how we help etc

Yes

Another form of social enterprise may be more appropriate

https://www.gov.uk/set-up-a-social-enterprise

 

[Paul Kelly ICHYB]

CIC sounds like the better solution - a charity comes with a whole bag of additional requirements.

 

[ethical PR]

Hello Jade

It's great that you want to help children who are in need.

The Charity Commission website will answer a lot of your questions.

Have a think about your reasons for doing this - if you want to be able to control the direction of a charity you would be a trustee. If you want to work for a charity do you and your husband have the skills in doing this for example running profitable fundraising events, making grant applications, setting up and recruiting to a grants committee to distribute funds, managing finances etc.

As others have mentioned a social enterprise would enable you to run and work for a social enterprise but you wouldn't be eligible to apply for many grants and funds.

 

[Alan]

As well as grants & funds, many product providers give discounted or free products/services for Not for Profits, but often the only NFP the recognise are registered charities. An example of this is Google Apps for Not for Profits which is free.

 

[Luci28]

Hello Jade I work for a Non Profit Organisation and although we not not actually collect any money we offer a service that people/members pay for. I think we all get paid a good enough wage for what we do. I know we looked at becoming a charity a few years back, but as other have said the additional requirements was not worth it for us.

My friends father works for a fairly large charity and one time over dinner he let it slip how much he was paid. To be honest I was totally astounded I had no idea that charities paid staff that amount of money.

I think as long as your intentions are correct no one will mind you taking a salary. Good luck in what you decided to set up.

 

[Airgunner]

We have contracted our services to one particular charity that advertises a lot and I won't name them on here but the amount they spend on office refits is absolutely disgusting! It is a blank cheque situation.

 

[ethical PR]

We have contracted our services to one particular charity that advertises a lot and I won't name them on here but the amount they spend on office refits is absolutely disgusting! It is a blank cheque situation.

How is that relevant to the OP's question?

 

[sirearl]

You may have to drop "the not for profit" bit.

I believe many charities that are not for profit pay employee's hundreds of thousands.

Bleeding cheek IMHO.

 

[Scalloway]

Not for profit refers to profits not being distributed to shareholders. It does not refer payment to employees.

 

[Airgunner]

How is that relevant to the OP's question?

Sorry not the most clear but my post was to reference the post above mine when wages where discussed.
I'm new to the whole quoting bit and assumed (yes I know the u and me thing) that my post would be read linear