Welcome to MT Charity and Not for Profit Services

Charity structures

Our dedicated specialists can advise on the relative benefits of becoming an incorporated organisation, with the ability to act as a single entity, or an unincorporated association, which relies on individuals to carry out transactions.

While for most organisations, the choice is between an unincorporated association and a company limited by guarantee, there are a number of other structures available, which we will now summarise:

Unincorporated association or trust: this is particularly suitable for small organisations, as it is easy and cheap to set up and run, with a lower level of regulation from an external regulator
Industrial and Provident Societies: these are classed as exempt charities, but have corporate status and can have share and loan capital. These are however regulated by the Financial Services Authority
Company limited by guarantee: while these are regulated by Companies House and the Charity Commission, they offer limited liability and so are useful for organisations that employ staff, own assets and enter into contracts
Community Interest Companies: these are designed for social enterprises with a continual need to meet the interests of the community and retain their profits for such purposes
Charitable Incorporated Organisation: such organisations can reap the benefits of incorporation with a reduced regulatory burden, as they are only regulated by the Charity Commission

While it is possible to change the status of a charity, incorporation is a complex process and professional advice should be sought before taking any action.

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Welcome to MT Charity and Not for Profit Services

Charity structures

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