What exactly is a charitable Trust?

What exactly is a charitable Trust?

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Client is setting up a Trust for a charitable purpose.  They don't hold property in the Trust, it is just a bunch of people getting together to save a local amenity by putting pressure on the council, with a long term view to operate it with volunteers and seeking grant funding elsewhere. It is a local tourist attraction.  They are calling themselves a Trust.  But what do they mean? Surely they need to be setting up a charity limited by guarantee (i.e. just normal charity company, not a different type of entity). To summarise, what do people mean when they talk about charitable Trusts? Is it different from a guarantee co or CIC or CIO? Is it a different thing entirely with a different set of rules. Or they just putting the word in the name for the sake of it??? Thanks

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By WhichTyler
04th Oct 2013 13:07

A Trust is a Trust is a Trust...

... usually established by a Deed of Trust.

If you are not sure what that means, you may need to ask a lawyer.  There is advice on different structures here: http://www.charitycommission.gov.uk/start-up-a-charity/setting-up-a-charity/what-type-of-charity-to-set-up/

Trusts are easy to set up and run, especially if they are small, but the Trustees are all liable for the debts of the Trust, so its not always appropriate

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By johngroganjga
04th Oct 2013 13:45

A charitable trust is a trust whose purposes are charitable.

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By jpcc1
04th Oct 2013 13:59

If its not too late consider the options, which as you suggest include a company limited by guarantee and CIO.

If the objectives are purely charitable it is a charity whatever the form, but a CLG or CIO may offer more protection to the trustees.

Look at the Charity Commission website for guidance:

http://www.charitycommission.gov.uk/start-up-a-charity/setting-up-a-charity/what-type-of-charity-to-set-up/

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Image is of a pin up style woman in a red dress with some of her skirt caught in the filing cabinet. She looks surprised.
By Monsoon
04th Oct 2013 14:51

charitable trust

If you want a passable analogy, a charitable trust is a bit like a business partnership - all the members are liable for what goes on, but there is no corporate structure.

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By Chris Smail
08th Oct 2013 19:01

PM sent

"with a long term view to operate it with volunteers and seeking grant funding elsewhere." So I strongly suggest you set up a charitable company limited by guarantee or a CIO to run this

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By nick farrow
08th Oct 2013 18:13

just wondered

I just wondered if any of you CIC/ charity specialists are based in London - I have a client who wants to start a couple of CIC's charities etc. and we don't have the resources to deal with this type of thing

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By Chris Smail
08th Oct 2013 19:02

Manchester

PM if desperate

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