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Running an organisation: the essentials

"I’m just about to set up my organisation. What do I need to do about things like accounting and insurance?"
"I’m starting a CIC or charity. What do I need to have in place?"

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If you’re setting up an organisation there’s a bit of admin that goes with it to make sure it’s all running shipshape and professional like. When I’ve been supporting new organisations, these are the most common things they ask about so here are my tips for each.


4 things you’ll need as a new organisation


  1. Registered Address You will need to choose an address in order to be able to register your company or charity. If you don’t have an office this can be your home but as this information is publicly available (for example on the register at Companies House), you may not be comfortable using your home address. You can use a company formation agent, a business address service, your accountant, or an organisation you work closely with, who are happy to do you a favour.


    Some of these services include post forwarding but if not you’ll need to think about how you can regularly and securely access your post. If Companies House or HMRC send anything out by post, for example, this is the address they would use. And funders will occasionally send a grant offer letter by post to your registered address and you wouldn’t want to miss that one!


  1. Bank Account When setting up an organisation, having a separate bank account in the name of the organisation means you can separate personal and organisation finances. It will also allow you to have more than one person who can access or administrate your organisation finances. Many funders require an organisation account to have at least two signatories on the account so choose an account that allows for this. Online banking means in reality that you’re not having to chase around the country to get two signatures on a cheque or whatever, and you can set up financial management systems where one person sets up payments and another approves them.

    Many high street banks offer a business bank account service, which is designed for companies and other organisations. Quite a few also offer charity, community or treasurer accounts which have the functionality of a business account but without the charges associated with a business account. You might want to consider the ethics of the bank- do they support the type of organisation you are and share your values? Banks like Unity, Triodos and Cooperative have ethical investment policies and understand the not-for-profit sector. Some funders have specific conditions for organisation accounts, for example some will only pay banks which are listed as regulated, on this list.


  1. Accounts You will need to send your accounts to Companies House and/or the Charity Commission annually. When applying for funding, you will also often have to send a copy of your organisation’s most recent accounts. You might be really confident with this, but otherwise it’s worth getting an accountant who can do it quickly and easily. Unless your finances are particularly significant or complicated this will usually be in the hundreds rather than the thousands, but do get quotes to compare. You may be able to get someone on your board with finance experience who can do this as part of their role, or find someone who can do it pro bono (for free) as they’re keen to support your organisation. Using software such as Quickbooks or Xero to manage your day to day finances makes the annual accounts preparation much quicker and easier and therefore can be cheaper. It’s worth taking time to find an accountant who you are comfortable working with, and where you understand what they’re asking for. Some send you emails like “it’s vital that you reconcile the purchase ledger and draw down the accruals to carry over the aging accounts receivable so make sure you do this correctly or you’ll go to prison” and that doesn’t help anyone. 

    You need to understand your own accounts and your accountant should ensure they communicate with you in a way which helps you to do that. It’s also important you work with an accountant who understands the type of organisation you are. Charities have particular accountancy regulations and the nature of grant funding or not-for-profit can be completely alien to some accountants. Find someone who specialises in this.


  1. Insurance As an organisation you will usually need public liability insurance, and many contracts will ask you to have this in place for a minimum of £5 million. Depending on the activity you are doing you may also need employers’ and contents, products or buildings insurance. Even if you are only working with freelancers or volunteers, you often still need employers’ liability insurance. Have a conversation with the insurance company and they can advise. As with accountancy, find an insurer who understands the kind of work you do. There are brokers that specialise in charity, community, youth, sports etc., for example. Many unions or umbrella/ support organisations also offer tailored insurance for the sector they support. Get quotes from several to compare.

What next?


For all of these services ask organisations similar in type and scale for recommendations, or on Facebook groups for CICs and small charities. If you join any of these groups, do a search and you’ll see these questions asked over and over, with lots of useful suggestions.

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