Is a charity the correct legal structure for this organisation?

Is a charity the correct legal structure?

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Hi Guys,

I am working with a organisation that is set up as a charity. Their main objectives revolve around religious education and their income is 95% based on a fixed fee pricing structure which varies depending on the number of children from each household that attend. Each child spends an average of 5 hours per week outside of mainstream education where they learn about their religion and read / understand the associated religious books / scriptures. The other 5% of income is general donations from the community.

Clearly there are associated costs mainly property and wages. However any surplus is used on other charitable projects. So the secondary objective can only be achieved through the funds created from the primary objective.

All students are from the local community along with most of its staff (paid and volunteers).

Having looked into the definitions of charities, I am not 100% sure this is the correct structure. On the basis of the income being fixed fee charges, not donations, and the primary objective is religious teachings, not the adhoc charity support, should it really be registered as a charity? It is certainly a not for profit organisation but is there a more appropriate setup for this? I know there are set ups for comunity interest groups but need some guidance on which route to take.

Your help is appreciated!

 

 

 

Replies (4)

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By User deleted
21st Aug 2016 17:43

I would presume by 'set up as a charity' you mean to say it has been registered as a charity. In that case you ought to check with the CC if they are hapy to continue with the registration.

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By khalm0
21st Aug 2016 18:58

Yes I plan on doing this but was wondering if others have experience in this sector and their views.

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7om
By Tom 7000
22nd Aug 2016 10:40

I guess if its not a charity, its a private school and you ought to be paying tax on it?

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By steve.hughes@seftoncvs
25th Aug 2016 12:26

Its the objects in the Mem & Arts or Constitution which determine whether or not it is a charity, not the source of its income. Based on what you have said if the objects refer to the advancement of religion or advancement of education, then so long as it meets the public benefit test, it is a charity, whether you want it to be or not.

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