[cma-l] Charity limited company

[Phil Edmonds]

On 10/09/2011 09:33, claire penketh wrote:
 > Stroud FM, currently a company limited by guarantee, is thinking about
 > becoming a charity limited company. Had a quick chat with OFCOM re
 > implications for our licence, which is held in the name of Stroud
 > Community Radio Limited and they said that we will have to keep the
 > current ltd company and set up the charity alongside, because the
 > charity isn't a body coperate.

You just need to apply to register Stroud Community Radio Limited as the 
charity.
You may need to review your company's 'Memorandum and Articles of 
Association' to ensure that all the clauses are compatible with being a 
Charity.
Charities that are Companies Limited by Guarantee are a very common form 
for charities that are larger than a small local community group.

There are various rules regarding the amount of 'trading income' a 
charity is allowed to make. If you sell a significant amount of 
advertising on your station you would be best to take professional 
advice on this topic. Many large charities have separate 'trading 
companies' that are not charities in their own right, but are 
established in such a way that all profits are passed to the actual charity.

I don't think that vary many Community Radio stations are actually 
registered charities. Future Radio in Norwich, Preston FM and 
Wythenshawe FM are the only ones which come to mind. There may be 
others, but I suspect most community radio licences which are held by 
charities are where the radio station is just one of a wider set of 
activities that the charity runs.

Regards,
Phil Edmonds.