{"id":145,"date":"2025-09-30T13:20:12","date_gmt":"2025-09-30T13:20:12","guid":{"rendered":"https:\/\/help.actionfunder.org\/non-profits\/?post_type=ht_kb&p=145"},"modified":"2025-09-30T13:20:12","modified_gmt":"2025-09-30T13:20:12","slug":"choosing-your-organisation-type-and-legal-structure-on-actionfunder","status":"publish","type":"ht_kb","link":"https:\/\/help.actionfunder.org\/non-profits\/help\/choosing-your-organisation-type-and-legal-structure-on-actionfunder\/","title":{"rendered":"Choosing your organisation type and legal structure on ActionFunder"},"content":{"rendered":"\n

When you register your organisation on ActionFunder, you\u2019ll need to select two things:<\/p>\n\n\n\n

    \n
  1. Your organisation type<\/strong> \u2013 a broad description of what kind of non-profit you are.
    <\/li>\n\n\n\n
  2. Your legal structure<\/strong> \u2013 the formal way your organisation is set up and recognised in law.
    <\/li>\n<\/ol>\n\n\n\n

    Getting this right ensures that funders understand who you are, and that the correct due diligence checks can be carried out before funding is awarded.<\/p>\n\n\n\n

    Step 1: Choose your organisation type<\/strong><\/h2>\n\n\n\n

    Start with the option that best describes your organisation:<\/p>\n\n\n\n

    1. Community Group or Other Informal Group<\/strong><\/h3>\n\n\n\n
      \n
    • You\u2019re a small or local group set up to support your community.
      <\/li>\n\n\n\n
    • You might not be formally registered with the Charity Commission or Companies House.
      <\/li>\n\n\n\n
    • You may use a fiscal host<\/strong> (another organisation) to manage funding on your behalf. (However, to be eligible for funding through ActionFunder, your organisation will need its own bank account, as we are only able to make payments directly to the applicant organisation.)<\/em><\/li>\n<\/ul>\n\n\n\n

      2. Registered Charity<\/strong><\/h3>\n\n\n\n
        \n
      • You\u2019re recognised by the Charity Commission for England and Wales, OSCR (Scotland), or the Charity Commission for Northern Ireland.
        <\/li>\n\n\n\n
      • You have a charity number and follow charity law.
        <\/li>\n<\/ul>\n\n\n\n

        3. Social Enterprise or Community Business<\/strong><\/h3>\n\n\n\n
          \n
        • You run as a business but your main purpose is social or environmental benefit.
          <\/li>\n\n\n\n
        • You reinvest profits back into your mission rather than distributing them to shareholders.
          <\/li>\n\n\n\n
        • Examples include CICs (Community Interest Companies), Co-ops, and Community Benefit Societies.
          <\/li>\n<\/ul>\n\n\n\n

          Step 2: Choose your legal structure<\/strong><\/h2>\n\n\n\n

          Once you\u2019ve selected your organisation type, you\u2019ll then choose your legal structure<\/strong>. This describes the exact way your organisation is set up and operates.<\/p>\n\n\n\n

          Here are the options you\u2019ll see on ActionFunder:<\/p>\n\n\n\n

            \n
          1. Charitable Incorporated Organisation (CIO)<\/strong>
            <\/strong>\n
              \n
            • A charity that is incorporated, giving trustees limited liability.
              <\/li>\n\n\n\n
            • Recognised only in England and Wales.
              <\/li>\n<\/ul>\n<\/li>\n\n\n\n
            • Charitable Trust<\/strong>
              <\/strong>\n
                \n
              • A charity run by a group of trustees under a trust deed.
                <\/li>\n\n\n\n
              • Often set up to manage assets or funds for charitable purposes.
                <\/li>\n<\/ul>\n<\/li>\n\n\n\n
              • Co-operative Society<\/strong>
                <\/strong>\n
                  \n
                • A business owned and run by its members, who share decision-making and benefits.
                  <\/li>\n\n\n\n
                • Must operate for the benefit of its members or the community.
                  <\/li>\n<\/ul>\n<\/li>\n\n\n\n
                • Community Amateur Sports Club (CASC)<\/strong>
                  <\/strong>\n
                    \n
                  • A club registered with HMRC to provide community sports.
                    <\/li>\n\n\n\n
                  • Must meet certain requirements around participation and affordability.
                    <\/li>\n<\/ul>\n<\/li>\n\n\n\n
                  • Community Benefit Society (BenCom)<\/strong>
                    <\/strong>\n
                      \n
                    • A type of co-operative set up to benefit the wider community (not just members).
                      <\/li>\n\n\n\n
                    • Registered with the Financial Conduct Authority (FCA).
                      <\/li>\n<\/ul>\n<\/li>\n\n\n\n
                    • Scottish Charitable Incorporated Organisation (SCIO)<\/strong>
                      <\/strong>\n
                        \n
                      • The Scottish equivalent of a CIO.
                        <\/li>\n\n\n\n
                      • A legal form designed specifically for charities in Scotland.
                        <\/li>\n<\/ul>\n<\/li>\n\n\n\n
                      • Company Limited by Guarantee (including CICs)<\/strong>
                        <\/strong>\n
                          \n
                        • A company without shareholders; instead, it has members who guarantee a small amount if the company closes.
                          <\/li>\n\n\n\n
                        • Many charities and social enterprises choose this model.
                          <\/li>\n\n\n\n
                        • CICs (Community Interest Companies) are a specific type of company limited by guarantee with additional community benefit protections.
                          <\/li>\n<\/ul>\n<\/li>\n\n\n\n
                        • Unincorporated Association or Club<\/strong>
                          <\/strong>\n
                            \n
                          • A simple structure often used by small volunteer-run groups.
                            <\/li>\n\n\n\n
                          • No separate legal identity, so members are personally responsible for decisions and finances.
                            <\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n

                            Which should I pick?<\/strong><\/h2>\n\n\n\n
                              \n
                            • If you\u2019re a small, volunteer-led group with no formal registration<\/strong> \u2192 Community Group \/ Informal Group<\/em> and likely Unincorporated Association or Club<\/em>.
                              <\/li>\n\n\n\n
                            • If you\u2019re a registered charity<\/strong> \u2192 Registered Charity<\/em> and choose the legal structure you\u2019re officially registered as (e.g. CIO, Charitable Trust, SCIO).
                              <\/li>\n\n\n\n
                            • If you\u2019re a social enterprise or community business<\/strong> \u2192 Social Enterprise \/ Community Business<\/em> and then select your legal structure (e.g. CIC, Co-operative, Community Benefit Society).
                              <\/li>\n<\/ul>\n\n\n\n

                              If you\u2019re unsure, check your governing documents or registration details (Charity Commission, Companies House, FCA).<\/p>\n\n\n\n

                              \u2705 Tip:<\/strong> If you\u2019re still not sure which option to choose, don\u2019t worry. Just pick the one that best matches your set-up, and the ActionFunder team will reach out if we need more details.<\/p>\n","protected":false},"excerpt":{"rendered":"

                              When you register your organisation on ActionFunder, you\u2019ll need to select two things: Getting this right ensures that funders understand who you are, and that the correct due diligence checks can be carried out before funding is awarded. Step 1: Choose your organisation type Start with the option that best…<\/p>\n","protected":false},"author":7,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"footnotes":""},"ht-kb-category":[2,6],"ht-kb-tag":[],"class_list":["post-145","ht_kb","type-ht_kb","status-publish","format-standard","hentry","ht_kb_category-getting-started","ht_kb_category-award-process"],"_links":{"self":[{"href":"https:\/\/help.actionfunder.org\/non-profits\/wp-json\/wp\/v2\/ht-kb\/145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/help.actionfunder.org\/non-profits\/wp-json\/wp\/v2\/ht-kb"}],"about":[{"href":"https:\/\/help.actionfunder.org\/non-profits\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/help.actionfunder.org\/non-profits\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/help.actionfunder.org\/non-profits\/wp-json\/wp\/v2\/comments?post=145"}],"version-history":[{"count":0,"href":"https:\/\/help.actionfunder.org\/non-profits\/wp-json\/wp\/v2\/ht-kb\/145\/revisions"}],"wp:attachment":[{"href":"https:\/\/help.actionfunder.org\/non-profits\/wp-json\/wp\/v2\/media?parent=145"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/help.actionfunder.org\/non-profits\/wp-json\/wp\/v2\/ht-kb-category?post=145"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/help.actionfunder.org\/non-profits\/wp-json\/wp\/v2\/ht-kb-tag?post=145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}