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How to? Incorporated Group...

Discussion in 'Personal' started by Nellyfuf2, Feb 24, 2020.

  1. Nellyfuf2

    Nellyfuf2 Established commenter

    Hi lovely Tessers
    Does anyone here know anything about setting up an incorporated group? I have googled. But am still baffled.
    Our community group is set up with an charity commission unincorporated group structure thing, but if we want to take the next step - if we can take the next step, then we need to be an incorporated group.
    Probably quite quickly.
    Anyone go any idea?
     
  2. nomad

    nomad Star commenter

    Charitable Incorporated Organisation (CIO)
    A CIO is a type of charity which is incorporated. It is quite a new legal structure – it was introduced in 2013.

    The are two types of CIO: Association Model and Foundation Model. Association Model CIOs are membership organisations and hold elections, whereas Foundation Model CIOs are run by a small group of appointed trustees.

    CIOs must be registered with and report to the Charity Commission, regardless of their income. Unlike charitable companies, however, they do not need to register with Companies House. This means the reporting requirements are simpler for CIOs than for charitable companies.

    Registration of a new CIO takes up to 40 days. You will need to use a model constitution approved by the Charity Commission, and apply online via their website to register your organisation.

    Other types of organisation can convert to being a CIO.

    Charitable companies can convert directly by adopting a CIO constitution and completing an online application form.

    Community Interest Companies can convert directly by adopting a CIO constitution, passing a resolution to convert and then applying to register the new CIO with the charity commission. The Charity Commission have step by step guidance on this process.

    Unincorporated charities such as unincorporated associations and charitable trusts can also become CIOs, but this involves setting up a new CIO, transferring all assets, then closing down the old organisation. This can take up to 18 months.

    For more information on how to convert to a CIO structure see the Charity Commission guidance “Change your charity structure”.

    https://www.gov.uk/guidance/change-your-charity-structure
     
    Jamvic likes this.
  3. Jamvic

    Jamvic Star commenter

  4. Jamvic

    Jamvic Star commenter

    You just beat me to it @nomad :D
     
    nomad likes this.
  5. will_osweighton

    will_osweighton Occasional commenter

    I dont have much idea, but some information is set out here and the Charity Commission may help if you ring them: https://www.resourcecentre.org.uk/i...tures-for-community-and-voluntary-groups/#cio

    What prompted me to reply is that I had a close encounter with a local community organisation which was unincorporated and was going to warn you to be cautious. The Trustees were half a dozen mostly elderly people, some of whom had limited personal resources, while others had money and owned their own homes. This organisation had employees and attempted to make staff redundant without following proper procedure. They took them to court and it ended with the Trustees becoming personally liable to make the redundancy, wages and holiday payments. Liability is joint and several, so the individuals who did have money were stung for all of it. Being unincorporated is like having a company that is not limited in liability.

    Many solicitors will do a free half hour and will often do this sort of work for a fixed fee. I would get some legal advice if I were you.
     
  6. Nellyfuf2

    Nellyfuf2 Established commenter

    What does that sound so much more reasonable that other stuff that has popped up upon googling.
     
  7. Jamvic

    Jamvic Star commenter

    If you can afford to have a solicitor do it for you then that’s great you can just hand the task over. All the info & forms needed are available on the Gov.uk site though.
     
  8. Nellyfuf2

    Nellyfuf2 Established commenter

    We will be filling out our own forms and doing it wrong. Ongoing battle to save a playing field..... if we can get it listed as a Community Asset of Social Value, then the need to be an incorporated group will kick in. Before that, we had to be an unincorporated group to nominate the asset.
    Now I am confused.
     
  9. Jamvic

    Jamvic Star commenter

    If it’s confusing you @Nellyfuf2 then perhaps someone else in your community group would be better placed to oversee the necessary reading and undertake the application procedures explained on the Gov.uk site.
     
  10. Nellyfuf2

    Nellyfuf2 Established commenter

    So true.
    But not one of us has done anything like this before. I had to lie down for several days after sending in the Nomination of Community Asset form.
    I set up the unincorporated group so that we could have some structure as a community action group.
    There is no experience or expertise in community action and protest in my area. We are like little children in a grown up world.
    If we have to set up an incorporated group and I have to lead on the paperwork, then I will just fill out the form and find out what to do.
    A magic wand would be so useful. Sigh.
     
  11. Jamvic

    Jamvic Star commenter

    It really seems like you need some professional help to navigate the process. It sounds as if it is becoming stressful to you and I’m sure no one in your group would want that. Paying for a solicitor may be what you’ll need to do. I’d talk to the group and let them know that you don’t feel you can manage it alone. It seems unfair for you to feel under such pressure alone.
     
  12. Nellyfuf2

    Nellyfuf2 Established commenter

    Yes it is stressful. You're right and it has taken a lot of my time for many months but then again, I have learnt a lot.
    and seen other people learn a lot too.
     
    Jamvic likes this.

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