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Changing From A Private Business To A Charity


klc106
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Hi

 

We have recently opened a playgroup and are really struggling to rasie funds and get children in.

 

Do you think we may benefit from changing to a charity instead of a private business?

 

Also, what is involved in changing to a charity and what to we need to do to be considered as a charity.

 

Thanks

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Hi,

 

We/I started a early years charity and plan to open a nursery/presschool through that model. To us it is the best model because of the access to charity funding. also you pay less business rate and taxes, get donations and gift by aid. recently we got given a £1000 worth of unsold xmas stock from homebase! for nothing! hire staff on a temp contract and rotate, make them pay their own taxes so you don't have pay their PAYe, it is totally legal and less on the business pocket.

 

However it takes alot of work to become a registered charity. Read the charity commissions website it will give u better understanding than me. Weve had loads of help and will do for a while. I am unsure how you change a business to a charity tho seek some advice on that bit. Charity usually means that you are providing a free service of some kind (a project) for the benefit of a group of individuals ( children) (single parents) (asylum seekers) this would be stated on your constitution. in your case the project would be your nursery; the project would then be funded by another organisation that fits the requirements of what you are aiming to deliver. ohhh iam rambling! let me know if ive been of any help, i will check out some stuff and get back to you! :unsure:

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Thanks tonib11, I will take a look at that website. It's just an idea as we are a new pre-school and really struggling to get people in and make ends meets with regards to wages and rent- I'm the manager/owner and haven't seen a penny since we started in September but have lost quite a few! :1b

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hire staff on a temp contract and rotate,

 

 

 

I find that quite a sad statement.............. One of the main reasons we are full every day and have a huge waiting list - is the fact we do have a very stable team!

We are able to offer keyperson continuity through whole families, and our parent/carers really value this.

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I agree with Louby Loo regarding staff team, ours has been stable for years except for a couple of pregnancies and I see that continuity as one of our strengths.

Being a charity wont mean more children though so be careful you dont go to all the trouble of changing your status for nothing. We're a charity, we have very little money, few children on the waiting list for September, still have to pay rent, insurance, staff wages and buy resources so I'm not sure being a charity helps a whole lot. Being non-profit making is easy!

Having said that, we've never been a private business so I'm not aware of all the pitfalls there.

Edited by Rea
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Ok it seems I am causing controversy on this forum.

 

Let me make my comment clearer, Temp contracts for legal reason however you would renew their contracts no a prob and obviously aim to keep those staff, 16 hours a week rotation of those 8 people means that those people are also able to work somewhere else if need be, and also mothers in London need part-time work as it suit them better! 8 members of staff on rotation the children will get to know those 8, they will work as a team to meet the needs of the children. There is nothing sad about my comment I just make it clear enough. The 8 staff would be lead by a EYP/QTS i think would be perfectly fine.

 

Key people are the most important thing with in a setting to a child I wrote my dissertation on this and experienced it first hand when I put my 12 week old son in nursery to finish university :( . But to me it is equally as important to have a buddy system in place as staff leave or go sick. building healthy relationships with all staff and children dramatically helps. I hope ive clear my comment up xD

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I dont think anyone would view your statement as controversial Tonib11.

Your opening post was a little unclear regarding staff, I certainly took it that your staff are temporary, I have worked for an agency doing temporary work and know it can be different staff throughout the week.

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But i have cleared it up now tho right? controversial................may be not but louby was saddened by the comment! I only sort to make myself clear. Yes I too worked for an agencies but this is not what i mean it would be the same people every week.

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I agree with Louby Loo regarding staff team, ours has been stable for years except for a couple of pregnancies and I see that continuity as one of our strengths.

Being a charity wont mean more children though so be careful you dont go to all the trouble of changing your status for nothing. We're a charity, we have very little money, few children on the waiting list for September, still have to pay rent, insurance, staff wages and buy resources so I'm not sure being a charity helps a whole lot. Being non-profit making is easy!

Having said that, we've never been a private business so I'm not aware of all the pitfalls there.

 

So if we were to call ourself a non-profit making setting, what would that mean? Would it still mean myself, my staff members and the rent for the premises get paid, but anything left over (if there was) would go back into the setting? and how do you become a non-profit making setting? or do you just call yourself one?

 

I'm so confused??

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I dont know how it all gets started because our group is 40 odd years old. Any profit (stop laughing) after wages, rent etc goes back into the group. You could contact the PLA for advice about starting as a charity, they are sometimes very useful. If not the charity commission are great.

This site looks good too http://www.knowhownonprofit.org/basics

And this one http://www.smallcharities.org.uk/starting-new-charity/?gclid=CITfn7uN7K4CFcYntAod4hVvLQ

Hope they're useful, I havent done more than glance at them so far, :1b

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Hi

 

We have recently opened a playgroup and are really struggling to rasie funds and get children in.

 

Do you think we may benefit from changing to a charity instead of a private business?

 

Also, what is involved in changing to a charity and what to we need to do to be considered as a charity.

 

Thanks

 

Actually, after reading your post properly changing to a charity might not help. Your problem is lack of customers. Have you leafleted the local area? GP surgeries, library, shops, church notice board, health visitor? We bought a banner from vistaprint, it cost £85.00 but within the first half term two funded children arrived purely because of the banner so it was well worth the money.

Are you known to your local school because we've had people who have been directed to us from there. Does your area have a family information service? Tell them where you are, get some business cards printed to hand out at the park and the local stay and play, we had 500 free from vistaprint. Being a charity means I dont usually have to pay to put flyers n shops bu if they want money it wont be much and you have to speculate to acumulate, or so I've heard :rolleyes:

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Hi we are also committee run for some 44 years now and are members of the PSLA. We are now an incorporated company with charitable status, all monies left after all outgoings must be signposted for specific projects. I think apart from the enormous benefit in working together with parent/carers is that more people are likely to support you because of your charitable status. But also be careful as this is not a guaranteed income and should not be treated as such.

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Thanks both. i think we will probably stay as we are. Rea, we have done leafleting and have got a banner from vistaprint. The local school did send out a leaflet in all the children's bookbags in September but I have yet to formally introduce myself to them.

 

Thanks again

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