Accessibility Features
Accessibility | Skip to Search | Skip to Navigation Menu | Skip to Members Sign In
Legal Structures & Charitable Status
Most groups and organisations in the community and voluntary sector describe themselves as community groups, voluntary organisations, or charities. Whilst these are helpful everyday references, these categories do not explain the actual legal structure of an organisation.
What are Legal Structures?
All organisations have a legal form i.e. how they are defined and established in law. This legal structure is based on how your group or organisation has been formally set up or constituted, and impacts on:
- how your organisation operates;
- what a Management Committee is allowed to do;
- the role and responsibilities of a Management Committee;
- the rules for an organisation (e.g. constitution or governing document);
- the personal liability of Management Committee members.
During 2006, the Department for Social Development consulted on draft primary legislation relating to a proposal for an order in Council: The Charities (Northern Ireland) Order 2006. This legislation is likely to be enacted during 2007 and will bring substantial changes to legal structures for charities in Northern Ireland. Further information will be posted on this site as it becomes available.
In order for a Management Committee to function effectively, it must be familiar with all of these areas. This section provides guidance to help you understand the implications of your organisation's legal structure.
Types of Legal Structures
Forming a New Group
If your group or organisation is just starting out you may want some guidance on how to set up and options available that are appropriate to your particular circumstances.
The most common types of organisations formed within the community and voluntary sector include:
- Association (e.g. community association)
- Trust (e.g grant-making organisation)
- Company limited by guarantee (e.g. charitable company)
- Industrial and provident society (e.g. community business)
These groups each fit within an overarching legal structure that divides organisations into two categories:
- those that are unincorporated (i.e. association; trust)
- those that are incorporated (i.e. company limited by guarantee; industrial and provident society)
This distinction is significant particularly because it determines the personal liabilities taken on by individual Management Committee members.
Organisations, whether incorporated or unincorporated, may also be charities. Whilst being charitable is different from your legal structure, it restricts some activities under law, but brings a range of benefits such as tax exemptions.
| Topics covered: | Legal Structures |
| Charitable Status | |
| Governing Documents |
