RUNNING A PTA – Unincorporated associations


FAQs


UNINCORPORATED ASSOCIATIONS


It’s flexible and simple. Staying unincorporated is an ideal way for a small group of volunteers to raise money, says Ian McLintock


I


f you’re a new PTA or a small group that doesn’t expect to raise more than £5,000 a year, there’s no obligation to register with the Charity Commission.


Remaining unincorporated will keep admin to a minimum, leaving you more time to plan events. You can even open a bank account and claim Gift Aid.


How can I set up an unincorporated association? It’s quick and straightforward. All you need is a written constitution


and three people willing to be trustees. Unlike a registered charity, an unincorporated association doesn’t have limited liability, so trustees may be personally liable if anything goes wrong. Good insurance is therefore a must.


Is there a difference in law between charities registered


with the Charity Commission and unincorporated associations? No, in law a charity is an organisation which has charitable


purposes and is exclusively for the public benefit. Trustees must act in the charity’s best interest at all times and ensure that no individual derives personal gain from its work.


Can an unincorporated association open a bank account? Yes. The bank will probably want to see your constitution first. Having


a bank account will reassure people who interact with you, and you’ll need it if you start applying for grants.


Does an unincorporated association need to file any documents? No, but it’s good practice to make everything publicly available. Add


your constitution to your Facebook page and your school website.


Does an unincorporated association need to file accounts? No, but you should still keep records of your income and expenditure. A


cash book would be sufficient.


Should an unincorporated association hold an AGM? Yes, you must hold an AGM at which the accounts and annual report should be presented, and trustees elected.


Does an unincorporated association need to


have insurance? If you’re running events, you’ll still need


public liability insurance. You might consider adding any officers and directors to indemnify them.


Can an unincorporated association claim Gift Aid? An unincorporated association can still register with HMRC and claim


Gift Aid. HMRC won’t register you if you raise more than £5,000 and aren’t registered with the Charity Commission.


Can an unincorporated association still apply for grants? It’s commonly understood that only registered charities can apply


for grants. But grant givers can fund anyone they choose to. If a grant states that only registered charities can apply, you won’t be eligible. But phrases such as ‘constituted’ or ‘local community groups’ usually mean you can go ahead.


Does incorporation affect licensing applications? Your association can apply for any licences it requires to legally hold


events and fundraisers. But the trustees need to apply on their own behalf.


Are people less likely to donate to an unincorporated association? Inside your school community, everyone knows the good work you


do, so it’s unlikely to make much difference. Once you start to look outside the school gates, people are more likely to donate to a registered charity.


At what point must we register with the Charity Commission? All charities with an annual income above £5,000 must register.


You’re allowed to register if your income is lower and you wish to do so.


READ


A longer version of this article at pta.co.uk


l Ian McLintock is the founder of the Charity Excellence Framework, a free online toolkit that connects charities to resources and people who can help.


charityexcellence.co.uk


Resources


l How to set up a charity: gov.uk/set-up-a-charity l Download a model constitution template. We recommend the model constitution for a small charity (Word version) : gov.uk/government/ publications/setting-up-a-charity-model-governing-documents l Charity bank accounts: charityexcellence.co.uk/Home/ BlogDetail?Link=Open_Charity_Bank_Account


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