Charities and Voluntary Organisations
What is a Voluntary Organisation?
Generally one formed to provide a service but not to produce a profit. Not all voluntary organisations are charitable.
What is a Charity?
A voluntary organisation established for exclusively charitable purposes e.g. to relieve poverty or to promote education or some other purpose for the general benefit of the community.
What form should an Organisation take?
Many are un-incorporated associations, e.g. group of people forming a committee for a particular cause or activity; as an alternative a company limited by guarantee may be established giving the advantage of some limited liability.
What is a Trustee?
Someone who looks after or manages assets on behalf of somebody else. You might become a Trustee by being appointed in a Will or Trust Deed. You might become a charity Trustee by agreeing to join the management committee of a charity.
What are the obligations of Trustees?
Trustees must act in accordance with the objects of the group or charity they represent, and must manage its assets and affairs with proper care. Charity Trustees are subject to the jurisdiction of the Charity Commission and the provisions of the Charities Act.
It is important to get the right form of structure for a group when it is first formed. Just as important is for the people forming the group to fully understand their duties and powers as Trustees and to feel confident that they can’t be held responsible if things go wrong.
At Watson Esam we have been participating in and advising voluntary organisations and charities in Sheffield for many years – so we have experience from both perspective of taking part and giving independent advice.
Whether you are thinking of forming a new group or joining an existing one, do get advice early on to avoid problems later. We shall be pleased to help.