Swardeston Cricket Club – Proposed Change to Charitable Incorporated Organisation
Current Legal Structure
The Club is currently a members’ club.
The advantages are:
1. Very little administration is required.
2. Lots of flexibility.
The disadvantages are:
1. The Club has no separate legal entity, so cannot own assets or enter into agreements in its own right.
2. Members are personally liable.
Proposed Change to Charitable Incorporated Organisation
Following advice from Leathes Prior, the Committee is proposing that the Club becomes a Charitable Incorporated Organisation (CIO).
The advantages are:
1. A CIO is a legal entity and can enter into contracts and own property in its own right.
2. Trustees and members have limited liability.
3. It will be easier to seek grants because the Club is a charity, regulated by the Charity Commission.
4. There are tax advantages in relation to donations, taxable profits and VAT exemptions.
The disadvantages are:
1. More administration, especially setting up the CIO.
2. Our accounts would be available online.
3. We could not become a members’ club again should we want to.
4. The Committee (or some of them would need to become charity trustees.
Recommendation
The Committee recommend that the members approve the proposal to become a CIO.
