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Ltd by guarantee - suitable for funding?

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I have a prospective client who wants to set up an organisation for an disability that affects her and wants to help others with the same disability

She has looked at various setups including unincorporated association, CIC and CIO.  Someone has suggested Ltd by guarantee, but she is concerned whether there would be extra difficulties in obtaining funding.  Would anyone know if there is there likely to be?

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By WhichTyler
06th Oct 2021 14:51

Depends on the funder.

LBG is a but redundant for new charities as the CIO does much the same thing but more easily, though lots of existing charities are LBGS

They must read this first https://www.gov.uk/guidance/check-if-a-new-charity-is-the-best-option?

then this: https://www.gov.uk/guidance/charity-types-how-to-choose-a-structure?

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By Paul Crowley
06th Oct 2021 14:56

I would avoid a CIC
If choosing Ltd by Guarantee I would also register with Charities commision

But CIO is all that is needed

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paddle steamer
By DJKL
06th Oct 2021 16:34

What sort of funding will be sought and from whom?

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Replying to DJKL:
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By CJS88
07th Oct 2021 09:31

This is the correct question. Don't ask us, ask the prospective funders.

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Replying to DJKL:
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By legerman
08th Oct 2021 00:46

DJKL wrote:

What sort of funding will be sought and from whom?

Don't know but it's a good question and one she should be asking the prospective funders before going ahead.

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By jonharris999
07th Oct 2021 10:41

It's a simple toss-up between suffering the relative complexity of CIO or charitable company (after LBG) registration, but then having the advantage of fundability from a much wider range of grant-making bodies; vs. simply incorporating an LBG overnight and accepting the lower range of fundability in exchange for the much less onerous scrutiny.

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By legerman
08th Oct 2021 00:42

Thanks for all the responses, much appreciated. Good suggestions to pass on.

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