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We are currently a CIC which is expensive and has to have directors has anyone had experience of setting up their shed as a Registered Charity?
I’m not surprised that you’ve found being a CIC is not a good option for a Shed. Doing the accounts can be difficult for those unfamiliar with the legal requirements and paying someone to help can be expensive.
We’ve identified nearly 200 Sheds registered as Charities, so yes there are quite a few. Charities with an income below £5,000 a year do not have to register, so there could well be many more.
A charity does have to have trustees and that’s similar to a company having to have directors.
A charity can however either be an unincorporated association or a Charitable Incorporated Organisation. The choice will depend upon the size of your Shed and the financial risk to the members.
Roughly how much is your income per year? and what are the main costs? (Rent, insurance?)
I believe that Association is the more appropriate model.
A Foundation CIO is run by the trustees who will be the only voting members. A Foundation CIO is therefore a closed membership charity run by a small group of people who make all key decisions.
An Association CIO has a wider membership including voting members other than the charity trustees. The voting members appoint the trustees by election.
In a Men’s Shed I would expect everyone to be members but not all of them to be trustees.
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