What business model to use for an international fundraising/humanitarian aid organisation?
Dear all,
I am involved with an international fundraising organisaation and intend to have it registered in Scotland. I will be the main director/administrator.
The aims of the organisation will be to provide medicines and funds to local healthcare centres in Nepal, Thailand and the Philipines.
I had been considering registering with Companies House as a Company Limited by guarantee. As I understand it, no profits at all can be made using this model.
Does anyone know what other options there are for running such an organisation, whether it be non-profit or for-profit and what the good points and bad points of each model are?
1 Answer
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VentureNavigator, thanks to sponsorship from the UK Government's Department of Business, Innovation and Skills and the Transformation Fund, have built a series of social enterprise asssessments which query the objective of your organisation and make recommendations on which structure might best suit (login required). There are four assessments, but I suggest that you start at the first one:
- Assessment 1: For-profit business, a charity, non-profit or a social enterprise?
- Assessment 2: Social Enterprise or a For Profit business
- Assessment 3: Company Limited by Share and Company Limited by Guarantee
- Assessment 4: Cooperatives
In addition, please see this list of resources, links and additional information for social enterprises, charities, cooperatives etc. In particular, please see the section on Legal Resources.
Practically, many charities set up trading arms which are wholly owned by the charty. The trading arm(s) undertake revenue generating activities and the profit is disbursed by the (parent) charity.
Finally do report back on your progress, so many people will be interested in following your footsteps.
Best wishes!
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