-
The intention is to register as a CIC which is a community interest company.
Summarised from Google:
The main differences between a charity and a community interest company (CIC) are their purpose, how they are perceived, and their tax treatment:
Purpose
Charities are established for charitable purposes and must provide public benefit. CICs are designed to benefit the community and have a social mission, but they can also engage in commercial activities.
Perception
Charities are often seen as providers of services without a commercial edge. CICs operate more like businesses, but with a clear social mission.
Tax treatment
Charities are not subject to corporate tax and are eligible for charitable tax reliefs. CICs are subject to corporate tax regulations and are not eligible for charitable tax reliefs.
Other differences
Ease of setup: CICs are quicker and simpler to set up than charities.
Fundraising: Charities are better for fundraising than CICs.
Income: Charities are typically reliant on grants, donations, and fundraising for a large proportion of their income. CICs can receive income from a variety of sources, including contracts, trading income, and grants.
Asset lock: CICs have an asset lock that ensures the company's assets can only be used for community benefit.
Dividend cap
CICs have a dividend cap that allows for the distribution of up to 35% of distributable profit each year.
You are reading a single comment by @jaitch and its replies.
Click here to read the full conversation.
jaitch
Reading through here, and I am not an expert, but is there not cause to register as a charity rather than a company?
Hell, the community here is a anchor point for many - I believe there might be less risk exposure that way