1. Governance Introduction

2. Session outline Structures for CLIs Pros and cons of different structures Must-do and who’s who Roles and responsibilities Meeting requirements

3. Structures for CLIs What are your needs? ◦ To be an employer ◦ To manage significant cash flow ◦ To have the potential for loans/overdrafts ◦ To take out leases or mortgages ◦ Enter contracts ◦ Manage public facilities  limit your liability: company limited by guarantee

4. Structures for CLIs What are your needs? – To apply for grants from trusts and foundations – To benefit from Gift Aid on donations – To ensure assets are transferred to a charitable organisation with similar aims on wind-up  apply for charitable status

5. Structures for CLIs What are your needs? – To be able to pay members for services – To share the profits for community or member benefit  consider establishing as a co-operative or company/social enterprise

6. Pros and Cons Start up costs – simplicity vs legal advice Accountabilities – reporting and accounting Flexibility – for present and future needs Democratic process – community engagement and sustainability

7. Must do and who’s who Annual report Accounts (format depends on size) Monitoring returns Records of meetings / decisions Records of expenditure / VAT Records of salaries / PAYE and NI

8. Must do and who’s who Office of the Scottish Charity Regulator Companies House Financial Services Authority (IPS) HMRC PAYE HMRC VAT HMRC Charities Team / Gift Aid

9. Roles and responsibilities Clear expectations Match Manageable workload Time limited Plan for the future Build skills throughout the community Learn from others

10. Meeting requirements Annual cycle Annual general meeting Annual report and accounts – OSCR – Companies House – FSA (IPS) Monitoring Return – OSCR