[cma-l] Charity limited company

[Phil Korbel]

Hi Claire

a few issues at play here.

You can talk to the Charity Commission about registering as a charity but be
aware that they seem reluctant to bestow charitable status on organisations
that seem to exist to 'entertain' regardless of your social aims - thus
Jaqui's comment about charitable aims in your existing Mem & Arts.  Indeed,
I'd recommend having the same front and centre of your constitution, web
site etc before approaching the Charity Commission.  We had recent
experience that suggests that, in spite of the precedents mentioned, there
is not an open door for community radio stations to become charities unless
they box clever from the outset.

Radio Regen was licensee for Wythenshawe FM and we're a charity - with
'education' as our charitable object - and the station was something that we
did to further that - along with a load of other training elsewhere.
PRESCAP, the licence holder for Preston FM, is a community arts
organisation.  So be very very clear that the furtherance of your charitable
aims is the primary activity/purpose of your company.

As other respondents have said - a co. limited by guarantee can be a
registered charity and that *should* be viewed as the same body corporate as
prior to that registration - unless e.g. you have a wholesale reshuffle of
the Board.

A charity, on its own, isn't legally a 'body corporate' - which is what
you've got to be to hold a licence - so having a parallel company limited by
guarantee is necessary.  There will however soon be a new body corporate to
make this unecessary - a Charitable Incorporated Organisastion - full
details here -
http://www.charitycommission.gov.uk/Start_up_a_charity/Do_I_need_to_register/CIOs/default.aspx.
But I'm not sure if anyone knows the timetable.

Best of luck!

Phil

On 10 September 2011 09:33, claire penketh <clairepenketh at yahoo.co.uk>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. Then they suggesed I ask the CMA what other members do, so here I
> am. However, I think a charity limited company is a body corporate? But, if
> the licence is held by Stroud community Radio limited, does that mean we
> still have to keep the company, or could the licence be transferred to the
> charity limited company?
>
> Yours, confused.
>
>  Claire Penketh, Stroud FM
>
>
>
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-- 
Phil Korbel
Director
0161 237 5454

Radio Regen is a community, media and urban regeneration charity
A company limited by guarantee and registered in England and Wales No.
3753832
Registered office: 12 Hilton Street, Manchester, M1 1JF
Registered Charity No. 1077763
www.radioregen.org
www.communityradiotoolkit.net
http://www.radioregen.org/consultancy/<http://www.communityradiotoolkit.net/consult/radio-regen-consultancy/>
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