Our organisation is running, but its not 'up'... Help!

sean-og3

Hello,
I, and a number of friends, have started an organization. Basically our aim is to provide a low cost means for people working with individuals with disabilities to make and adapt physical activity equipment. We have already implemented our idea in a number of centres and it has proved successful.

However we are all from the adapted physical activity field and our business knowledge is very weak.. we have read and read but remain confused about what we are? So, if I am may tell you our aim and beliefs and future plans for our org, it would be wonderful if someone could provide some advice on what we should register as....
Thanks you so much.

Our aim is not to make a profit. Our aim is to spread the knowledge of how to make and adapt equipment to as many individuals with disabilties as possible. We will have to have expenses covered and a low stipend for workshop providers but everything extra made will be put back into providing more oppurtunities for more people with disabilities. For example, when giving a workshop to an centre in dublin, we charged a fee (because we felt they could afford it) but now we are putting forward a proposal to do some work in the Carribean to help some schools make and adapt equipment for the many children there with disabilities. We hope to have money ourselves to put into this project and avail of funding also.

But what should we register as? A charity? a non for profit? A business?
If anyone could shed some light on this for us it would be greatly appreciated.

Thank you very much,
Sean

YouBuyLocal

Put very simply, you are a social entrepreneur. A social entrepreneurialism is half-way between charity & business, in that you know you have to be financially sustainable, but you are non "for-profit". Being dependent upon philanthropy or charity can be as bad as a for-profit because you are not dependent upon the people you are serving, which causes lack of clarity and divergent interests.

You should set up as a Not-for-profit. http://www.wheel.ie/ is a great resource. Also, check out socialentrepreneurs.ie.

Good Luck :-)

antoinolachtnai

You cannot register as a 'not for profit'.

You might incorporate a company without share capital. You really need to take accounting advice on this. The Wheel might be a starting point, but I don't know if they'll be great to get individual advice.

You need to think carefully about the word 'profit'. The vast majority of businesses do not have the shareholders take the profit out of the company and spend it. Most of the profit is typically reinvested. Allowing reinvestment and development is a large part of what making a profit is for. In practice, you need to make a profit from your activities to allow reinvestment and development.

YouBuyLocal

antoinolachtnai wrote: »

You cannot register as a 'not for profit'.

You might incorporate a company without share capital. You really need to take accounting advice on this. The Wheel might be a starting point, but I don't know if they'll be great to get individual advice.

You need to think carefully about the word 'profit'. The vast majority of businesses do not have the shareholders take the profit out of the company and spend it. Most of the profit is typically reinvested. Allowing reinvestment and development is a large part of what making a profit is for. In practice, you need to make a profit from your activities to allow reinvestment and development.

You don't technically register as a "not-for-profit", but you do register as a charity of some kind which implicitly means "not-for-profit". Its in the A1 and there are concrete stipulations, like you can't be affiliated strongly with a for-profit organisation unless it is purely for sponsorship and not based upon revenues. This is a well-worn path, talk to people in SEI or The Wheel, they'll tell you exactly what you need to do immediately. Its almost the exact same process as a normal company.

antoinolachtnai

You should certainly get proper professional advice.

The Revenue Commissioners get to decide whether you are a charity. You cannot simply register as one. The grounds are reasonably narrow. On the face of it, the work described does not have a clear charitable object and the Revenue are likely to refuse to register it.

A 'social enterprise' is not necessarily a charity.