1. STRUCTURES IN VOLUNTARY ORGANISATIONS

2. Introduction Look at the problems of voluntary organisations Outline the defining features of a company Distinguish between sole-traders, partnerships and companies

3. INTRODUCTION Outline the tax advantages and disadvantages of incorporation for voluntary organisations Consider the implications of being a Charity

4. The problems of Voluntary Organisations The lack of a clear and written constitution Difficulties with the succession of control Financial problems principally to do with fundraising, borrowing and taxation

5. The problems of Voluntary Organisations Problems with Control itself Problems with Liability and Insurance. Problems with Supervision.

6. The Defining Features of a company Limited Liability Transferable shares Perpetual Succession Assets, rights, liabilities, etc.

7. The Defining Features of a company Capital Management Written constitution Supervision

8. Comparison of Company and non corporate bodies No Separate Legal entity Joint and Several Liability No Succession Assets, rights, liabilities, etc.

9. Comparison of Company and non corporate bodies No Capital Restrictions Participative Management No Written Constitution Required No Statutory Supervision

10. Taxation factors in favour of Incorporation –Eligibility for incentive reliefs –A lower rate of Corporation Tax –Opportunities for raising finance on favourable terms –Greater scope for investment in pension schemes –Opportunity to sell shares in exchange for shares –Ability to take advantage of tax-favoured share incentive schemes to pay employees

11. Taxation factors against Incorporation Double capital gains tax effect on liquidation of a company Drawings Losses

12. Charities The relief of poverty The advancement of education The advancement of religion Other purposes beneficial to the Community

13. Revenue Requirements –Written constitution suitably modified Prohibition of employment of directors Prohibition of distribution of money for any reason Prohibition of modification without Revenue approval Undertaking to distribute surplus to a similar organisation –Names and details of all proposed directors

14. Revenue Requirements –Corporation Tax Number –Accounts of Predecessors –Literature and other promotional materials