RMR Partnership specialises in providing services to the Not for Profit Organisations such as:-
- Companies Limited by Guarantee
- Registered Charities both incorporated and unincorporated.
- Voluntary Community organisations
- Membership Clubs
Our Range of Services to this sector include
Formation of Companies Limited by Guarantee– these are companies which are incorporated under the Companies Act and do not have Share Capital. It is a corporate body, making it a legal entity in its own right.
With a company that is limited by guarantee, the financial liability of members, including the Management Committee is usually limited to a nominal amount ( i.e Members commit to pay a nominal amount usually £1, should the company face financial difficulties. It does not protect against fraud, negligence, etc
Such companies are suitable for large voluntary organisations, community group that owns premises, will deviver Charitable contracts and organisation that employs staff
Setting up a Registered Charity which is also a Incorporated– these types of Charities are registered as Charity with the Charity Commission and are also incorporated under the Companies Act. They have to prepare their accounts in accordance with the Companies Act and also comply with The Charities Accounting Standards (SORP).
The Management Committee members of a charitable company are usually the directors and the trustees. Charity law uses the term ‘trustee’ to describe the people who are responsible for the overall control of the organisation (i.e. the Management Committee); whereas company law refers to these individuals as ‘directors’. Generally the Management Committee members are both directors and trustees unless the Governing document specifies differently.
Setting up Registered Charity – these types of Charities are registered as Charity with the Charity Commission. They are often referred to as Unincorporated Charities. Such Charities are governed by Charity Act 2011and have to comply with the The Charities Accounting Standards (SORP).
In addition to setting up Charity and Companies Limited by Guarantee we also provide the following services:-
- Auditing the charity’s accounts and providing added value
- Preparing and independently examining the charity’s accounts to ensure that they comply with best practice (SORP)
- Advising on how best to keep the accounting records of the charity and develop financial policies
- Secretarial duties and meeting filing requirements of the Charity Commission and Companies House (if appropriate)
- Advising on governance and best practice
- Advising on tax efficient fund raising and trading issues
- VAT advice
Advantages of Setting up A Charity
Generally most charities are exempt from income tax, corporation tax and capital gains tax. Apart from the income tax associated with donations under the Gift Aid scheme, income tax deducted from certain other types of income attract repayment, for example bank interest, government stocks, royalties and estate income. There are also some advantages (though not blanket exemptions) in relation to Rates and Value Added Tax.
Also some Grants and funding’s are only available to Registered Charities.
Charity Accounts and Reporting Requirements
The accounting for charities are very detailed with different requirements for different sizes and types of charity. Click the link below for detailed guidelines provided by the Charity Commission
The reporting requirement are quite detailed and deciding which type of report Report it may require from Audit Report for Charities with an income of over £ 500,000 to Independent Examination report for Gross Income over £ 25,000. If the Charity is also a limited company than the Companies Act requirements will also need to be considered.
Please contact us for further advice and guidance on preparing your Charity’s accounts and Report. RMR Partnership LLP has vast experience in dealing with Charities of all types and sizes, including audit, accounting, taxation and payroll aspects. We also assist Trustees with setting up new Charities and ensuring existing ones are effectively run.