Page 6 - handbook_EN
P. 6
SETTING UP A LOT
Your LoT can have one of many different organisational structures
or many different operating procedures. This section is split up
into sections to explain this.
Organisational Sctructure
Your LoT can take take one of many organisational structures. In
the UK you could register as a charity, provided you meet the
requirements. Your organisation would need to conduct all its
operations for the public benefit, and it must be entirely
charitable. You would also need to have a constitution and a board
of trustees. You would need to research this in your own country
to find out what is necessary. Sometimes there are legal
requirements on a charity, so this is important to understand fully.
You can find further information at the Charity Commission in
England and Wales and in Scotland, see Office of the Scottish
Charity Regulator.
You may want to become a Community Interest Corporation. This
type of formation is like a limited company, but with its profits
benefiting the community rather than shareholders. A CIC is not a
charity. The definition of a charity is more narrow than a not-for-
profit. A CIC looks more like a business than a charity. You can limit
you CIC by shares or by guarantee. By guarantee is the most
common as it can be converted to a Charitable Incorporated
Organisation (CIO). Again, it is your responsibility to ensure you
understand the terms and implications of this type of orgaizational
structure.