If you decide you need a formal structure for your community group, particularly if you wish to raise funds you may wish to form a Constituted Community Group. This will enable you to apply for funding, set up a bank account, buy insurance, rent property, own equipment and employ staff.
Things to think about:
• Adopting a constitution - a simple set of rules which make it clear how your group will work
• Name and purpose of the group
• Members of the group
• Decision making process and process for resolving disputes
• Assign Roles such as Chair, Treasurer and Secretary
• Annual General Meeting (AGM) and other meetings
• Polices that need to be drawn up
• Insurance to cover your activities
• Accounting - how the money is to be managed
• Activities - e.g. raising funds
• Dissolution or closure of the group
Liability:
You need to be aware that a constituted group is not a legal body in its own right, so individual members who enter into obligations, such as contracts, on behalf of the group are responsible as individuals for its debts and other liabilities. The central feature of unincorporated businesses or organisations is personal liability for the owner, partner or member of the management committee. If you are on the management committee of an unincorporated association your personal assets are at risk if the assets of the organisation are not sufficient to cover all the debts and liabilities.
Committee:
The committee is usually made up of members of the group and elected once a year at the Annual General Meeting.
It is usual to have a:
• Chair: The person who calls meetings and has overall responsibility for the group
• Secretary: The person who is responsible for correspondence and voting at meetings
• Treasurer: The person who is responsible for keeping records of income and expenditure
and making sure your accounts are ready for the AGM.
You can choose how many people are on your committee and for how long You can decide who has the right to vote at meetings and if it is just the committee or if you have a wider membership
AGM and other meetings:
You will need to hold an Annual General Meeting (AGM) once a year. This is when you inform your group’s members about the work the group has done, share financial information, and approve your annual accounts
• General meetings - These are meetings that all members can attend and take full part in
• Special General Meetings - A Special General Meeting is used to discuss important matters that need to be put before the whole membership, such as an amendment to the constitution
Finances:
• The bank account will be maintained on behalf of the group at a bank agreed by the committee
• There will be at least two signatories to the account
• Records of income and expenditure will be maintained by the Treasurer and a financial statement given at each meeting
• An annual statement of accounts will be presented to the Annual General Meeting
• All money raised by the Association will be spent solely on the objects laid out in the constitution
• You can apply for grant funding but will need to report on how this money is spent to the funder If you cannot open a bank account for your group, you could use a service called Accountable which offers to host and manage your group’s money.
Raising Funds:
Fundraising can be carried out in a number of ways, events and activities, sponsorship, crowdfunding, trading or applying for grants. Most local supermarkets will support community activities with donations of refreshments, go instore to ask!
HIVE Portsmouth can search a funder database to source relevant funders for your work. Below are some useful links to introduce you to applying for funds:
• Awards for All from the National Lottery offers grants of up to £10k
• Hampshire & Isle of Wight Community Foundation operates many funding programmes
• Partnership Foundation funds of up to £500 for new projects in Portsmouth
• Postcode Society Trust offers a range of grant funds from the People’s Postcode Lottery
• Portsmouth Crowdfunder offers match funding for eligible crowdfunder campaigns
• Portsmouth Community Lottery offers grant funding from players of the Portsmouth Lottery
Useful Resources:
You can use these links for templates for policies and constitutions, information on legal changes and news for your sector
NCVO Knowhow offers information, tools and resources for all types of VCSE organisations
The Resource Centre is a really useful place for community groups
My Community provides a central hub for information and support for community organisations
The Small Charities Coalition helps small organisations with a social purpose
Next Steps
Register with Companies House as a Community Interest Company
This allows you to trade and give financial liability protection
Register with the Charity Commission as a Charitable Incorporated Organisation
As above but also gives you charitable status and allows you to claim Gift Aid.