So why have we registered as
company?
There are three ways to
register a charity.
An unincorporated association is suitable for small charities or
local branches of national charities. Typically these would include scout groups, village hall groups, local sports clubs,
investment clubs, residents associations, voluntary organisations and some syndicates. This type of charity normally
has a membership and usually represents a local community, and as such expresses the views of the community. This type of
charity cannot hold investments or own land in its own name. Generally the charity membership is open to all and every member
normally has a vote. Many charities start in this way.
The second way is to register as a Trust. This is normally run
by a small group of people and there is no time limit on how long people are in office as trustees. It cannot rely on membership
and it must be a grant-making body only.
The third way is to register as a Company Limited by
Guarantee. Examples of company charities would include Scope, Diabetes UK, Save the Children Fund, Oxfam, Support Dogs,
St Basils, and the ME Association. There is the scope to employ people and it can deliver charitable services under contractual
agreements. This type of charity can also own land and make investments. This type of charity is also subject
to Company Law as well as Charity Law.
We have decided to register
as a Company Limited by Guarantee for several reasons. Our long term aim is to be successful at raising funds to help save
the lives of stray and unwanted dogs and by keeping this in mind we do not want to grow to a point where we can no longer
help other dogs or areas because we are limited by the framework we have chosen. For this reason the unincorporated association
would not be suitable for us as it is generally designed for small, local organisations as indicated above. We have a
business plan and will, as per the requirements of Charity Law ensure that we remain solvent as we grow. We also intend
to have contractual agreements - such as the lease of a charity shop or the use of private kennels. Additionally while none
of our directors can receive payment and our volunteers are just that, we want the option to be able to pay people for services
they provide if it benefits the charity and its Objects. As we are now registered we are already bound by Company Law
relating to charitable companies. Our accounts also have to adhere to the Standards of Recommended Practice (SORP) and
we will have to provide accounts and annual reports to both Companies House and the Charity Commission once our registration
is approved. In addition our directors adhere to the Nolan Standards and the ICSA codes. None of our directors
receive any payment for the work they undertake for the Charity and none of them can receive dividends.
