Governance

Introduction

Session outline

• Structures for CLIs• Pros and cons of different structures• Must-do and who’s who• Roles and responsibilities• Meeting requirements

Structures for CLIs

What are your needs?◦To be an employer◦To manage significant cash flow◦To have the potential for loans/overdrafts◦To take out leases or mortgages◦Enter contracts◦Manage public facilities

limit your liability: company limited by guarantee

Structures for CLIs

• What are your needs?– To apply for grants from trusts and foundations– To benefit from Gift Aid on donations– To ensure assets are transferred to a charitable

organisation with similar aims on wind-up

apply for charitable status

Structures for CLIs

• What are your needs?– To be able to pay members for services– To share the profits for community or member

benefit

consider establishing as a co-operative or company/social enterprise

Pros and Cons

• Start up costs – simplicity vs legal advice• Accountabilities – reporting and accounting• Flexibility – for present and future needs• Democratic process – community engagement

and sustainability

Must do and who’s who

• Annual report• Accounts (format depends on size)• Monitoring returns• Records of meetings / decisions• Records of expenditure / VAT• Records of salaries / PAYE and NI

Must do and who’s who

• Office of the Scottish Charity Regulator • Companies House• Financial Services Authority (IPS)• HMRC PAYE• HMRC VAT• HMRC Charities Team / Gift Aid

Roles and responsibilities

• Clear expectations• Match • Manageable workload• Time limited• Plan for the future• Build skills throughout the community• Learn from others

Meeting requirements

• Annual cycle• Annual general meeting• Annual report and accounts– OSCR– Companies House– FSA (IPS)

• Monitoring Return– OSCR