Setting up a community club, the legalities

[CelestialBody]

Hello

I've recently been made secretary of our local astronomy group. It's a very small group, consisting of a shed and two floor mounted outside scopes. I've no experience with administrating this type of thing and wondered if anyone can please advise on the following:

1. At the moment visitors give a "suggested donation". If membership fees were introduced does this make the group profit making and subject to tax?

2. Should it be registered as a charity?

3. There is currently no public liability insurance in the grounds of "too expensive". Is it s legal requirement to have it? The equipment isn't insured either.

4. Is been suggested that paying a membership could entitle members to visit the observatory whenever they like to use the scopes for themselves. I'm concerned with this idea because of the lack of liability insurance. Is this indeed s concern?

5. Is there a limit on what monies can be held in the bank account for a community group?

6. The group is seeking a new home following the land they were on now being sold. A donor has come forward with land. Would they need planning permission to put a large shed and two telescopes?

Any advice much appreciated!

Thanks

[Stu]

Regarding liability insurance, if your group joins the Federation of Astronomical Societies (FAS), then you can get insurance (PLI) under their umbrella policy. It costs to join so you would need to gather that through membership fees I guess, but it is very affordable. The cost varies with number of members so small groups are treated fairly.

[KenG]

Regarding the shed and telescopes, the shed being a temporary structure should not require planning permission, but check this out with your local planning service, they'll give you an opinion over the phone. The telescopes definitely won't require any form of permission.

[mcolbert]

given that I'm not in the U.K. and don't know the 'local' ins and outs, the first thing that I would do is to contact the FAS and see what they can suggest.  The second thing would be to contact several (as many as possible), astronomical societies / groups and to see how they go about organising themselves.  Having been a secretary for a number of small groups over the years, I have found that having 'club' members face up to the legalities etc can focus the attention of people in the group leading to more enjoyment of meetings etc.  (The caveat being that don't let yourself be inundated with bureaucratic procedures and the like.)

The other thing to remember, is that as a secretary for the group you will be exposed to (what I think) is a whole new range of information regarding rules, forward planning, decisions regarding affiliations and membership fees, liaising with other organisations - councils for one, FAS for another - the list goes on and all of this is of benefit to you.

I wish you well!

michael

[CelestialBody]

Thank you for all the advice, will check it out. With membership fees, is that okto set those or does it involve any kind of tax implication?

[JonC]

Do not shove a large shed up without checking if its permitted development. They are not classed as temporary structures. 

[jambouk]

I'd phone the tax office in the week and ask them - they will know what records should be kept, and what consititues income and what is taxable etc. They'll also know how, if at all, this changes if you were to gain charity status.

James

[101nut]

1. At the moment visitors give a "suggested donation". If membership fees were introduced does this make the group profit making and subject to tax?

2. Should it be registered as a charity?

3. There is currently no public liability insurance in the grounds of "too expensive". Is it s legal requirement to have it? The equipment isn't insured either.

4. Is been suggested that paying a membership could entitle members to visit the observatory whenever they like to use the scopes for themselves. I'm concerned with this idea because of the lack of liability insurance. Is this indeed s concern?

5. Is there a limit on what monies can be held in the bank account for a community group?

6. The group is seeking a new home following the land they were on now being sold. A donor has come forward with land. Would they need planning permission to put a large shed and two telescopes?

One step at a time

1: potentially yes. At the very least you should already be keeping accurate accounts 'just in case'.

2: Yes ... or no! You have to perform 'charitable activities' to be a charity. Some advantages and some disadvantages to charitable status. Check the Charities Commission website for a long, long read before you decide on that one ...

3: If you are not admitting 'the public' there is no obligation to have PLI. However if you have a site and equipment and potentially have *any* activity involving the public you *should* be covered, if only for the financial security of all those involved. Are donating members 'the public'? Are non-donating members actually members? Who insures the perimeter of the site - for instance falling branches off trees? Who cuts the grass? With insurance there are so many complications ... :-)

4: It's up to the organisers how site access is granted. Members will not necessarily be covered by PLI directly (check policy wording) and you will potentially need insurance for the site/equipment.

5: No limit on monies in the bank but several rules, some regarding income levels, annual profit and formal account audits.

6: Depends - check with the council. If you put concrete down (eg for a telescope pad or shed base) you should check it isn't regarded as a permanent structure. A phone call to council planning will help.

In addition simple things to remember like who owns the site? Does it need to go to planning for change of use? Who pays the council tax/business rates?

Good luck

AndyG