I am treasurer for schools work charity, currently operating in 3 schools. We are registered charity. A new area/school expressed an interest to join with us and we understood to come on board fully, finances and all. After hearing nothing I now hear that the new area are coming on board to utilise all our policies and our name but intend to remain financially seperate (I.e. Run their own finances, seperate bank accounts etc)
Asides losing the benefit of our gift aid registration, and other missed opportunities, does anyone know where we stand legally/charity law wise if the new area "appears" to be part of our charity (including having a very very similar name - our name with a 2 after it) but we are not reporting their income/expenses in our accounts?
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How can
another organisation become part of your charity where it intends to become 'financially separate' (whatever that means) and therefore your trustees have no control over how it is managed?
What if it is mismanaged and carries your name as far as the public is concerned?
The new group is either run by your charity or it isn't - DO NOT ALLOW some half way house situation to develop - the trustees may well find themselves liable for a situation they have no control over yet allowed to happen.
If it controls its own funds it's independent from your charity and will have to register with the charity's commission in its own right if its income is over £5.
It will get its own charity number which it must display on all official documents (including fundraising documents, website etc) and this will differentiate it from your charity.
It must not choose a charity name that is too similar to another charity and could therefore mislead the public - the charity's commission have power to make it change its name if it does, although it prefers such matters to be resolved by negotiation.
There's plenty of info online from the Charity Commission, most now transferred to the .government. UK website, including www.gov.uk/how-to-choose-a-charity-name, or contact them.