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Need some advice, we've been an semi-formal volunteer group working closely with the FC trail building for years (covered by FC insurance etc.). We have a bit of money that was held by another group on our behalf. That other group has now folded and we want to set up a bank account to transfer the money into. What's the minimum we need to do to get this setup and what sort of bank account do we need?
Any advice on what documents we need or the process to formally create the group will be really helpful as I've no idea where to start. Might use our formal status in future to apply for match funding alongside the FC so need to stay separate from the FC.
For a group/club I think you need a constitution and evidence of a committee - which I think as a minimum is a chairperson, secretary and treasurer (which then also ensures more than 1 signature on any cheques.
For a group/club I think you need a constitution and evidence of a committee – which I think as a minimum is a chairperson, secretary and treasurer (which then also ensures more than 1 signature on any cheques.
that would be normal - but multiple signatures isn't necessarily a requirement, e.g. it may be "cheques" < £100 you'd be happy for one signature. One thing to beware of is in 2022 nobody uses cheques - so you probably want to make sure the mobile app is easy to use for multiple approvers. Possibly they all are now, but a while back some couldn't cope with it so forced you to bank like it was 1985!
The officeholders will have to all go through the usual banking ID checks which means its probably easier to do this with a branch that is local, unless you all happen to use the same bank anyway.
you will find constitutions online etc - couple of things to think through:
- what happens if the groups is disbanded (where do any money/assets go), you don't need to name the organisation but it can be helpful to say "to other organisations working to promote cycling" or "to another body supporting the use of the outdoors in XYZ woods" or "as determined by the committee/members at the time provided it is not for the personal benefit of those members" etc.
- how a quorum is defined. Often it is either a %age of the membership or a minimum number of people. The former works better for small numbers, the latter for large numbers. One group I am in now has 250 members and an AGM/EGM required 25% of the members... try getting 63 people to come to an innocuous AGM! The rules was written when there were 30 people involved! Changing the rule required an AGM/EGM!! You probably actually want something like
- you may want to allow proxy voting, simple constitutions don't usually mention it, but again easier to get someone to fill in a form than turn up! Similarly electronic meetings & AGMs are now the norm - so I'd write it in the rules or someone in a few years time will be an ass and insist you have to book a room!
- it can be helpful to the committee to have certain powers delegated to them, but also to be clear on what they cannot do without the full organisation approval. e.g. the can take out insurance, open a bank account, make operational expenditure (including paying consultants, seek professional advice etc) - but they cannot employ anyone, initiate any court proceedings, cancel an insurance policy mid year, close a bank account etc. without a resolution agreed by an AGM/EGM [those may or may not be good ideas to permit/restrict - depends on the organisation]. As the founder you are usually going to be on the committee when it starts - but imagine in 3 years time you are no longer on the committee - what should they be allowed to do.
- some organisations like to actually set up as Ltd Co's to protect the liability of the office holders and members. It's not a bad idea but does give you some extra costs/admin.
Cheers both, exactly the sort of info I was after. Will do some Googling now I know what I'm looking for. Poly thanks for the extra points to consider as well.
As above constituted group is about the simplest option. However if you're looking to apply for match funding from places then you really need to check out what their requirements for funding partners are to be sure you'll be able to do so.
Ride Sheffield said it doesn't need to be as complicated as you might think. Drop them a line? They say they're happy to help folks with stuff like this.
You can do it as a community interest company
Advantage is limited liability
Disadvantage is the annual return to companies House
If you are organised it's not that onerous, there are plenty of people who specialise and don't charge a lot
Banks do accounts for third sector groups, ideally choose one which a few of you use for personal banking as it makes the I'd checks easier and you can electronic bank. They also help with big cheques for photos for press releases etc
Is the PMBA organisation folding?
Folded, our funds are currently with Rossendale Road club, with a change of FC personal upcoming it makes sense to get a bit more organised.
You can set up an Unincorporated Association run by a Management Committee. To do so you will need to have a constitution. As an Unincorporated Association the members of the management committee will not have limited liability. This is a typical structure for sports clubs etc. with no employees or premises.
You can register as a charity with the Charity Commission if the organisation has charitable aims and is run for public benefit, and if your group is charitable you must do this if you have an income exceeding £5,000 per year.
Some details about bank accounts - https://www.resourcecentre.org.uk/information/bank-accounts-for-community-and-voluntary-organisations/
Some guidance around setting up a constitution - https://www.resourcecentre.org.uk/information/constitutions/
As you dig trails I would go for a limited liability community interest company, it's also a more established setup for grant applications etc, some running costs but not significant.
Thank you all, some really useful info and offers of help. I shall digest and talk with the others. Should have asked for advice sooner.