Becoming a Charity (CIO) – How it effects us
Now that we are a registered charity, it means that when we get hold of a shop or other premises, we will be exempt from having to pay business rates. It also means that we will be able to apply for grants from the National Lottery and other grant-giving bodies. Both these things are essential for the project to be financially sustainable.
Being “Incorporated” means that, like a limited company, the EcoHub is now a legal “person” in its own right, so that the members and the Trustees (like the shareholders and directors of a company) would not have personal liability – for example for the organisation’s debts if it were to go bankrupt – unless they had behaved fraudulently or with illegal recklessness. (Members of an unincorporated association do not have this protection.)
The “Association model” means that the membership, as well as individual people, can also include groups and organisations, whether these are themselves unincorporated associations or any kind of formal organisation including not-for-profit companies, charities, NGOs and businesses. All such members will have one vote each in electing and holding the EcoHub management (the Trustees) to account.
What it means for us organisationally is that instead of being a loose “Unincorporated Association” of individuals, brought together by a common purpose but without any formal structure, we are now an organisation with a defined Constitution and rules (view HERE) and a defined membership with overall democratic control.
Now that we are duly registered, we have to hold a General Meeting for members to formally elect the Trustees who will be in day-to-day charge of the Charity. From now on the membership will decide policy and elect the Board of Trustees at General Meetings, and may also decide to remove any Trustee if the need arises.
The Board of Trustees will be responsible for the day to day running of the organisation, including its finances and the recruitment, appointment and management of volunteers and any future paid staff. The Trustees cannot themselves be paid staff or benefit financially from their roles in the Charity. The Board of Trustees will have to submit an Annual Report & Accounts to a General Meeting and to the Charity Commission for approval.