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AIBU?

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Original poster

Have you set up a non profit?

60 replies

nonprofitorgs · 13/07/2025 14:10

I am thinking of setting up a non profit the aim of which would be to provide specific resources free or base cost (informative website and books), and I believe there would be public benefit so would qualify as a charity. A lot of work would be required to set up the resources and I would like to be paid for this and also to be able to pay for expertise and services, and payment would come from grants/donations and this would all be set up with transparency. Has anyone done anything similar and if so which structure did you use? I am thinking that a charity with trustees might be inflexible and the admin element might become very time consuming and I am wondering if a company limited by guarantee might be more straightforward? But could that be seen as sufficiently not-for-profit to enable grants to be given?

Thanks!

OP posts:
DumbbellIdiot · 13/07/2025 16:45

spannasaurus · 13/07/2025 15:54

One point that many people overlook in not for profit companies is that if the company makes a profit then it will be subject to tax.

Only registered charities have a tax exemption.

Not if the company was limited by guarantee.

EsmeNoteSpelling · 13/07/2025 16:40

I work with a number of CICs that operate nationally - the ‘community’ can be a community of interest rather than a geographic one. I’d say it’s definitely worth a look.

www.gov.uk/government/publications/community-interest-companies-how-to-form-a-cic/community-interest-companies-guidance-chapters

spannasaurus · 13/07/2025 15:54

One point that many people overlook in not for profit companies is that if the company makes a profit then it will be subject to tax.

Only registered charities have a tax exemption.

Original poster
nonprofitorgs · 13/07/2025 15:49

spannasaurus · 13/07/2025 14:23

If you were to set up a charity and became a trustee of the charity it would not be possible for you to be paid for your time or services as trustees cannot receive payment.

If you set up a charity and did not become a trustee then you would have no control over the charity and the trustees could decide your services were no longer required

This is my worry! Thank you

OP posts:
Original poster
nonprofitorgs · 13/07/2025 15:47

OldLondonDad · 13/07/2025 14:40

Why setup a new charity? It just fragments efforts to help people further.

Unless it truly is something unique or otherwise unavailable in your area, is there an existing charity you can work with?

I can't find anything which does what I am wanting to do. There is a charity whose name relates to a similar thing, but I have spoken to them and they said that although their name might lead one to think differently, in fact the things they are permitted to do under their objectives are very limited.

OP posts:
Original poster
nonprofitorgs · 13/07/2025 15:41

EsmeNoteSpelling · 13/07/2025 14:17

Yes, I have. I’m not a governance expert but believe if you use any company (limited by shares / guarantee) structure you will need an asset lock to be eligible for any grants (which btw are hard to get and getting harder…)

Have you looked at CICs - community interest companies? They sit between companies and charities and are used a lot for this kind of thing.

Thanks for this, re asset blocks, exactly what I needed to know.

I think the CICs are for local rather than national causes and if so wouldn't be suitable.

OP posts:
OldLondonDad · 13/07/2025 14:40

Why setup a new charity? It just fragments efforts to help people further.

Unless it truly is something unique or otherwise unavailable in your area, is there an existing charity you can work with?

R0llingOverTumble · 13/07/2025 14:32

I saw one on Dragons Den where books & educational resources were free

No idea how they did it !

spannasaurus · 13/07/2025 14:23

If you were to set up a charity and became a trustee of the charity it would not be possible for you to be paid for your time or services as trustees cannot receive payment.

If you set up a charity and did not become a trustee then you would have no control over the charity and the trustees could decide your services were no longer required

EsmeNoteSpelling · 13/07/2025 14:17

Yes, I have. I’m not a governance expert but believe if you use any company (limited by shares / guarantee) structure you will need an asset lock to be eligible for any grants (which btw are hard to get and getting harder…)

Have you looked at CICs - community interest companies? They sit between companies and charities and are used a lot for this kind of thing.