Unincorporated Organisations / Constituted Groups

This structure is ideal for small groups with a membership, short-term goals, low incomes, and which do not intend to employ staff or acquire property. Unincorporated Associations are quick and cheap to set up. Unless a group is applying for charitable status, no other agency need be involved.

Also called Constituted Groups, they are ran by committees who often deliver the services / activities as well as run the organisation (but not always).  It is the committee that takes full responsibility for the running and liabilities of the group.  However, an unincorporated association has no separate legal existence and remains for most purposes a collection of individuals. Any property or contracts would have to be held by individuals on behalf of the group, or any legal proceedings taken against the group would, in reality, be against the individuals themselves, making them personally liable, as liabilities are held by committee members. Most voluntary organisations begin as unincorporated organisations and may stay that way, particularly if they are small.

In practice, it is worth agreeing on some basic rules and writing these down, so that everyone is clear about the aims for the organisation and how it will be managed. An unincorporated association is governed by its constitution accountable to members. If the voluntary organisation is developing into a larger organisation where they need to lease buildings or employ staff or enter into large contracts, they need to review their structure and look at a more appropriate structure.

Unincorporated organisations can take different forms such as Charitable Trusts, Friendly societies, registered charities, which are not registered as companies, and unregistered voluntary and community.

Unincorporated Association may be the best option for you if your group is small, has a limited or specific purpose, operates on a small budget, does not own property or need to employ staff or has no long term commitments or plans to enter into lease agreements for any equipment etc. It is a popular simple structure commonly used by small voluntary organisations.

Pros

• Can be set up quickly and cheaply (no setup fees unless you involve a solicitor)
• Cheap and relatively easy to run - no need to notify changes in office bearers to any public register
• Offers a democratic structure with reasonably flexible procedures
• If your group’s aims and purposes are considered ‘charitable’ (as defined by law) you can apply to the Charity Commission to be registered as a charity

Cons

• The group cannot hold property or enter into contracts in its own name
• Members may be held personally liable for the organisation's debts