LBA changing from CIC to Charity
Since the London Basketball Association (LBA) started in 2012 it has grown from strength to strength helping communities unite by using the power of the basketball. As with all organisations the LBA is always trying to grow itself to reach more communities across London and even further. While being a Community Interest Company (CIC) has given the organisation good opportunities to perform its duties, we feel that being classed as a Charity will provide more opportunities for us. Becoming a charity will suit our needs more and was always a part of the business plan to make this transition.
It’s important to understand why we feel that being a charity can help us improve. One of the benefits is the status that being named a charity can give to an organisation. This is because of the positive perception that the label has towards it. This perception can in turn help with increased fundraising to allow for the improvement in the activities that we provide. Also the donors can receive 100% tax relief and the government will add an extra 25% on top of the donation. Another benefit is that the status will be the increased access to gain funding that would not be attainable as a CIC.
As a CIC it has its limitations, such as it is not well recognised by society as it is a relatively new initiative by the government. Also a CIC is sparsely limited in the amount of funding it receives when compared to a charity. However for a non-profit organisation to be established it is a great stepping stone.
A change that will occur from the charitable status is that there will be a committee introduced to the organisation. To ensure that trustees on the committee have similar views to the organisation’s aims we decide that the committee will consist mainly of members that have been part of the organisation.
We would like to send a special thank you to Philippa Keith from MSP Chartered Secretaries for the pro bono work she provided LBA in order to help us put together our constitution and charitable purposes statement.
By Yemi Buraimoh