Charity Constitutions
Most charities have traditionally relied on one of two constitutional structures
– either a trust or a limited company. However, trusts do not offer much in the
way of personal protection to Trustees and Limited Companies, which were never designed
to be charities, have increased regulatory burdens.
The difficulties that unincorporated charities have in recruiting Trustees have
long been recognised and recent legislation means that a new structure will soon
be available – the Charitable Incorporated Organisation. The aim is to have a purpose
built charity structure which combines limited liability for the Trustees with a
simplified regulatory regime.
In other situations, there may be more appropriate bodies such as Community Amateur
Sports Clubs or Industrial and Provident Societies. Each structure has its own administrative
and regulatory advantages and disadvantages. Everys' specialists advise clients
on the various options for their constitutional position, whether it is as a trust,
CIO, CASC, Industrial and Provident Society or one of the other available vehicles.
Our experience of working closely with clients and the regulatory bodies ensures
that you can get on with running your organisation with as little fuss as possible.
In addition, we regularly advise charities on reviewing and renewing their constitutional
documents.
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