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?
Replies (7)
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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?
I would avoid a CIC
If choosing Ltd by Guarantee I would also register with Charities commision
But CIO is all that is needed
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.