Support For Charities in Transition
Are You a Charity Ceasing Operations? Here’s What You Need to Know
Ceasing operations as a charity can be a complex and challenging process. At Achieve Foundation, we understand the intricacies involved and are here to support you through every step. Whether your charity is closing due to the fulfilment of its mission, financial challenges, or strategic changes, it’s crucial to handle the process correctly to ensure all assets and obligations are managed appropriately.
Steps to A Charity Ceasing Operations
1. Review Your Governing Document
Key Action:
Your charity’s governing document outlines the procedures for dissolution, including how to handle remaining assets. Ensure you follow these instructions carefully, as required by the Charities Act 2011.
2. Settle Debts and Liabilities
Key Action:
Before distributing any assets, pay off all outstanding debts and obligations, including creditors, staff salaries, and taxes, in compliance with the Insolvency Act 1986.
3. Notify the Charity Commission
Key Action:
Inform the Charity Commission of your decision to cease operations. You’ll need to submit a final set of accounts and a final report, as stipulated by the Charities (Accounts and Reports) Regulations 2008.
4. Transfer or Sell Remaining Assets
Key Action:
Remaining assets should be transferred to another charity with similar purposes or sold, with proceeds benefiting other charitable activities. This must be done transparently and according to the Charities Act 2011.
5. Prepare Final Accounts and Reports
Key Action:
Complete and submit final accounts and a report detailing the handling and distribution of assets. This ensures transparency and accountability, as required by charity law.
6. Communicate with Stakeholders
Key Action:
Notify your beneficiaries, donors, and stakeholders about the closure and how the assets will be used. Clear communication helps maintain trust and integrity.
Choosing the Right Charity for Asset Transfer
When transferring assets, it’s essential to choose a charity that aligns with your mission and values. Look for organisations with:
- Compatible Objectives: Ensure their goals and activities align with your charity’s mission.
- Proven Track Record: Select charities with a history of effective project delivery and financial accountability.
- Transparency: Partner with organisations that maintain high ethical standards and transparency in operations.
How Achieve Foundation Can Help
At Achieve Foundation, we offer comprehensive support to charities in transition. Our services include:
- Consultation and Guidance: Expert advice on navigating the legal and administrative steps involved in ceasing operations.
- Asset Management: Assistance with the transfer or sale of remaining assets to ensure they continue to benefit the public.
- Stakeholder Communication: Support in communicating with stakeholders to ensure a smooth transition and maintain trust.
Need Help Navigating the Process?
Ceasing operations doesn’t have to be overwhelming. If your charity is closing and you need support to ensure a smooth and compliant transition, contact Achieve Foundation today. Our team of experts is here to help you navigate the complexities and ensure your charitable legacy continues.
