Not-for-profit organisation

[BubbaWY]

I am involved in the potential setting up of a new not-for-profit organisation. I need to be careful how much I divulge at this stage, but I am looking for some advice on the legal structure. I know there are around seven or so options such as an Unincorporated Association, Registered Charity, Community Interest Company, etc. I appreciate there are pros and cons to the various options and was wondering whether anyone had any experience or advice?

 

[Scalloway]

As a veteran of the not for profit sector I would recommend using a type of organisation that gives the members limited liability. A company limited by guarantee can cover all the bases. CICs and charities have special requirements. Unincorporated associations are only really wise for small groups.

 

[eteb3]

Sorry if this is a stale thread.

I agree with scalloway if your organisation is going to have anything more than minimal capital, employ people, or lease or buy property. A company limited by guarantee can easily be converted to a CIC or charity at any stage later - once you’re proper up and running and you know for sure that one of those would suit you better.

That said, I think starting unincorporated is best if the biz is low risk, and you think it might after all fail in the first five years, or remain always smallish: unincorporated associations are so straightforward, so flexible, and cock-ups are so much more easily buffed out