Question 1

What does it mean if a charity is incorporated?

Accepted Answer

An incorporated charity is  a legal entity with a separate identity from the trustees who run it, which gives them greater protection from being personally liable.

Question 2

Which charities are incorporated?

Accepted Answer

Charitable companies and CIOs, and SCIOs in Scotland, are incorporated, which gives their trustees limited liability protection.

Question 3

Why would you register as a charity?

Accepted Answer

Registered charities are the best type of non profit for fundraising and there are significant charitable tax benefits in being a charity.

Question 4

Can I run a charity without registering?

Accepted Answer

You can set up an unregistered charity by creating an unincorporated association but you must register if your annual income reaches £5000.

Question 5

What charities are exempt from registration?

Accepted Answer

Exempt charities are largely institutions of further and higher education, universities, industrial and provident societies, friendly societies, or national museums, that were established by Act of Parliament or by Royal Charter.

Question 6

How much does it cost to set up a UK charity.

Accepted Answer

There is no Charity Commission E&W fee to set up a UK charity but expect to pay about £1000 or more for someone to do it for you.

Question 7

Is a foundation a type of charity?

Accepted Answer

Foundations have traditionally been founded by an individual or organisation but a foundation is not a legal structure. Foundation is a Companies House sensitive word and may not be used by companies unless they are non profit companies.

Question 8

What is a Community Amateur Sports Club (CASC)?

Accepted Answer

A CASC is not a legal structure as such, but allows local amateur sports clubs to register with HMRC and benefit from a range of tax reliefs, including Gift Aid.

Question 9

What are the benefits of registering as a CASC?

Accepted Answer

The Community Amateur Sports Club (CASC) scheme provides a number of charity-type tax reliefs to support local sports clubs - mandatory 80% relief from business rates, the ability to generate income through the gift aid scheme and exemptions from corporation tax.

Question 10

What is the difference between a CASC and a sports charity?

Accepted Answer

The difference between a CASC and a charity, is that a charity has charitable status and registers with the Charity Commission E&W, or other charity regulator, and can register with HMRC, but a CASC is only registered with HMRC.

Question 11

Is a CASC a charity?

Accepted Answer

A sports club could be a CASC or a charity but not both.  CASCs are not regulated by the Charity Commission E&W, or other charity regfulator, and organisations registered with HMRC as a CASC, cannot register as a charity. They would need to close down and transfer the assets to a new charity.

Question 12

What is meant by mutual societies?

Accepted Answer

A mutual society is an organisation owned by its members. Profits are usually reinvested to help improve the service, rather than paid out to external shareholders as they would be in a public limited company (PLC).

Question 13

Who regulates mutual societies?

Accepted Answer

Mutual societies are usually regulated by the Financial Conduct Authority (FCA) but may be dual regulated with the Prudential Regulation Authority (PRA).

Question 14

When do mutual societies have to submit their annual accounts and return?

Accepted Answer

It is a legal requirement for a mutual society to file the annual return (AR30) and accounts to the FCA within 7 months of the end of its financial year.

Question 15

Are mutual societies registered with Companies House?

Accepted Answer

A mutual is a society, rather than a company, but its name and a reference number will appear on the Companies House register.

Question 16

What is a Co-operative Society?

Accepted Answer

A Cooperative Society is a business run for the economic, social and cultural benefit of its members.

Question 17

Is a Cooperative Society a charity?

Accepted Answer

A Cooperative Society cannot be a charity because its beneficiaries are its own members, rather than the public.

Question 18

What is a Community Benefit Society (CBC)?

Accepted Answer

A community benefit society is a business that is run for the benefit of the wider community, re-investing profits in the community.

Question 19

Can a Community Benefit Society be a charity?

Accepted Answer

A Community benefit society can be established as a charity as long as it has an asset lock.

Question 20

What is a credit union?

Accepted Answer

A credit union is a financial co-operative owned by its members. The services credit unions can offer include deposit-taking and lending.

CIC & Charity Set Up Guides

Setting up a Charity CIO or CIC - Start Up Toolbox

CIC for Dummies - CIC Meaning and What A CIC Is

How To Complain About UK Charity Bank Accounts

Alternatives To Setting Up A Charity - Community Interest Company (CIC) vs CIO

How To Register And Set Up A UK Charity - Setting Up at No Cost

How to Set Up A Community Interest Company - CIC Registration Step By Step Guide

Best UK Community And Charity Bank Accounts - How to Open One

Charity Insurance - Including Trustee Indemnity & Public Liability

Unincorporated Charitable Association - What A UK Unregistered Charity Is And How To Set One Up

How To Convert A CIC Company To A Charity CIO

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