How do you legally get paid to run a charity?

Discussion in 'Social Enterprise' started by Network Yorkshire, Jan 17, 2010.

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  1. Network Yorkshire

    Network Yorkshire UKBF Newcomer Free Member

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    For sometime now my wife has said that she would to set up a charity to help a cause close to her heart. The problem is she would liek to do it full time but isnt sure if the charity she sets up can legally pay her a wage to run the charity... if that makes sense? If so how would she go about it?
     
    Posted: Jan 17, 2010 By: Network Yorkshire Member since: Jan 28, 2009
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  2. Vending Siting Services

    Vending Siting Services UKBF Big Shot Free Member

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    Have a word with the Charities Commissioners - they are the legal body governing charties and they will be able to help you.

    Kind regards.

    Barbara Fellowes
     
    Posted: Jan 17, 2010 By: Vending Siting Services Member since: Jan 26, 2007
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  3. Network Yorkshire

    Network Yorkshire UKBF Newcomer Free Member

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    That's good advice that frankly i should of thought of...thanks!
     
    Posted: Jan 17, 2010 By: Network Yorkshire Member since: Jan 28, 2009
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  4. bwglaw

    bwglaw UKBF Newcomer Free Member

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    A trustee of the charity cannot be an employee also.

    We can advise and assist on the formation of a charity if you email us direct.
     
    Posted: Jan 17, 2010 By: bwglaw Member since: Apr 8, 2005
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  5. Network Yorkshire

    Network Yorkshire UKBF Newcomer Free Member

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    would she have to be a trustee?

    i.e. could the charity cover her time and expenses in order that she could give more time to raise money for the charity etc...
     
    Posted: Jan 18, 2010 By: Network Yorkshire Member since: Jan 28, 2009
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  6. bwglaw

    bwglaw UKBF Newcomer Free Member

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    No

    The charity can only meet reasonable costs incurred in meeting its charitable objectives. Payment for her time would not be allowed unless she is strictly an employee of the charity and not serving as a Trustee/Director of the same.

    The site below is a useful resource:

    http://www.charitycommission.gov.uk/index.asp
     
    Posted: Jan 18, 2010 By: bwglaw Member since: Apr 8, 2005
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  7. Network Yorkshire

    Network Yorkshire UKBF Newcomer Free Member

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    so she could be an employee of the charity of the charity were a limited company?
     
    Posted: Jan 19, 2010 By: Network Yorkshire Member since: Jan 28, 2009
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  8. bwglaw

    bwglaw UKBF Newcomer Free Member

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    She can be an employee of a charity, full stop. It does not have to be a limited company by guarantee although many charities that do employ staff tend to form a limited company by guarantee to limit the liabilities of the trustees/directors. She must not serve as Trustee/Director of the Board.

    Another form of entity that she could consider is a Community Interest Company (CIC) which is a private limited company for the benefit of the coomunity. The key difference here is there is an 'asset lock' and strict rules regarding the distribution of profit.

    I can advise and assist with forming the appropriate entity if you email us direct.
     
    Posted: Jan 19, 2010 By: bwglaw Member since: Apr 8, 2005
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  9. Network Yorkshire

    Network Yorkshire UKBF Newcomer Free Member

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    what kind of expense are we looking at for the set up process?

    She may have to do some fund raising before she's even started!
     
    Posted: Jan 19, 2010 By: Network Yorkshire Member since: Jan 28, 2009
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  10. craiga1971

    craiga1971 UKBF Newcomer Free Member

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    Have a look at this:

    http://www.charity-commission.gov.uk/registration/faqpage.asp

    In short, the charity must usually have £5K income per annum.

    If she wants to "run" the charity then she will need to be employed by it and thus will have to find IIRC a minimum of 3 people to take on Trustee roles. These are important roles and will require people to play a hands-on role (not day to day) but oversee the charity's work.

    (I founded a community group in 2002 and oversaw its transition from an unincorporated association to a Limited Company Limited by guarantee and then on to charitable status, which was granted in 2008.) Drop me a PM if you want to chat about possible avenues open to you.

    Craig
     
    Last edited: Jan 20, 2010
    Posted: Jan 20, 2010 By: craiga1971 Member since: Jan 7, 2010
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  11. Zak alvarez

    Zak alvarez UKBF Newcomer Free Member

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    So if you run this charity, are you able to take money out to make sure that you have money(if you do it full time and dedicate your life to it.
     
    Posted: Feb 6, 2018 By: Zak alvarez Member since: Feb 6, 2018
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  12. Newchodge

    Newchodge UKBF Big Shot Free Member

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    No. Only if there is a board of trustees running the charity, who appoint you as an employee.
     
    Posted: Feb 6, 2018 By: Newchodge Member since: Nov 8, 2012
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  13. Zak alvarez

    Zak alvarez UKBF Newcomer Free Member

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    Okay. So in that case, how will the trustees live if they do not get any money from their full time job?
     
    Posted: Feb 6, 2018 By: Zak alvarez Member since: Feb 6, 2018
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  14. Newchodge

    Newchodge UKBF Big Shot Free Member

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    Trustees oversee the charity. The employee runs it full time. The trustees cannot take money from the charity. How they live is up to them.
     
    Posted: Feb 6, 2018 By: Newchodge Member since: Nov 8, 2012
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  15. Zak alvarez

    Zak alvarez UKBF Newcomer Free Member

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    So looking over the past conversation, you can’t be both, you can’t be a employee and a trustee at the same time, and if that is so, then do the trustees literally just make sure everything is going smoothly and check the employee doesn’t steal money? But they do not have anything to do with the actual charity?
     
    Posted: Feb 6, 2018 By: Zak alvarez Member since: Feb 6, 2018
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  16. Newchodge

    Newchodge UKBF Big Shot Free Member

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    Look at the Charities Commission website. Check duties of trustees.
     
    Posted: Feb 6, 2018 By: Newchodge Member since: Nov 8, 2012
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  17. Mr D

    Mr D UKBF Legend Free Member

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    The trustees may well be volunteers at the charity as well as trustees. They will oversee the charity, set policy, vote on matters and receive reports as necessary.
    Quite common in small charities for certain trustees to take on roles that could be done by paid staff if they had any.
    One might manage the charity, one might fundraise for the charity, one might recruit volunteers etc.

    The trustees have responsibilities.
    It is rare but they can be paid, as many as a couple of dozen trustees a year are paid - permission has to be sought from the charity commission and tends to be for particular things.
    And those trustees then usually cannot vote on anything to do with what they are being paid for.
     
    Posted: Feb 6, 2018 By: Mr D Member since: Feb 12, 2017
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  18. Zak alvarez

    Zak alvarez UKBF Newcomer Free Member

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    Okay, one more question, if let’s say I am the employee, do I get to vote on anything like a trustee and also work like an employee, or do I just work and the trustees tell me what to do? (For a charity if that matters)
     
    Posted: Feb 7, 2018 By: Zak alvarez Member since: Feb 6, 2018
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  19. Newchodge

    Newchodge UKBF Big Shot Free Member

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    You just work, normally. You cannot be (or act as) a trustee or directo.
     
    Posted: Feb 7, 2018 By: Newchodge Member since: Nov 8, 2012
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  20. Mr D

    Mr D UKBF Legend Free Member

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    If the charity governance document allows you to then yes you can vote.
    Most places I've come across that would be no but the trustees can make their own exceptions.

    The trustees have responsibility for the charity and they tell the employees what to do. Usually by some declared method - perhaps an executive board, perhaps simply the chair informing staff.

    Have been to dozens of charity board meetings, only one charity allowed the manager a vote.
     
    Posted: Feb 7, 2018 By: Mr D Member since: Feb 12, 2017
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