If you're thinking about setting up a new voluntary or community group or wishing to review your groups current status, then you will need to consider the type of legal structure your organisation adopts. Each type has its advantages and disadvantages.
This page provides information on the different types of legal structures to help you decide which is most suitable for your organisation. It is not intended to comprise specific legal advice, which, if required, needs to be sought from an appropriate source.
Just want a straightforward community group?
Many community groups are run entirely by volunteers, to benefit their own members, improve their local neighbourhood, or run campaigns.
If you are simply a group of people wishing to get together to organise something on a small budget, and don’t plan to employ staff or lease premises, you probably don’t need to read the whole of this page!
You are likely to find that an unincorporated association is the structure for you. This is a simple structure which you can set up yourself, without registering with anyone. All you need to do is write and agree a constitution.
Before you decide on a structure
There are a few things to think about:
- Have you done some research and local networking to see if there are any other groups with similar aims to yours?
- Have you contacted any local or national organisations that may support the goals of your group?
- How have you evidenced the need for your group?
Decide your structure
When deciding which structure best suits your group, you will need to consider whether your organisation is Incorporated or Unincorporated.
Incorporated organisations
An incorporated organisation has "legal personality" which means it can enter into contracts, buy or lease property, and employ people in its own right. Any debts or obligations belong to the organisation, rather than to the individuals running it. This gives the trustees, directors or committee members some protection, although they still have some liability.
Take a look at the following incorporated structures:
Unincorporated organisations
An unincorporated organisation is, in legal terms, a collection of individuals. Any debts or obligations are the responsibility of the trustees or management committee. Although this might sound scary, many small organisations actually have very few financial obligations. They often do not employ staff or run premises, and there is little money involved in running the group’s activities. This means the risk is often very low.
Take a look at the following unincorporated structures:
Get support
If you need support on what is right for you, you can contact the Deal for Communities Team who will be happy to offer advice and guidance.