Question on CIO Status

[SMS Network Coordinator]

I have a message from George Palmer (HAMESH Shed) , that he has asked me to post.



I would like to know the status of other men's sheds in the region and whether they had registered as Foundation or Association CIOs.

The reason I  asked is because it is my belief that we registered wrongly as a foundation CIO given its parameters.

I would like to peruse this in our shed but hoped to get some guidance from yourselves.
Regards


Therefore: My Question is -

I am researching CIO status and would like to find out how many sheds have achieved it and whether they became Association or Foundation CIOs.  

Can people email me on [e-mail] to let me know.

Regards,

George Palmer

[Mike Brading]

Basingstoke Shed registered as an association CIO.

It seems that, where you have members who join the organisation to get the benefits and they should have some influence on what their organisation does, then the Association model is the right one. To me it is totally in keeping with the culture of most Sheds I have come across.

If, though, you were a charity that didn't have members, then you go for the Foundation model. Here the trustees take all the decisions and the beneficiaries receive what is decided. A grant making charity would be an example of this - people ask for money and the trustees decide whether or not to give it.

Hope that helps
Mike

[SMS Network Coordinator]

A copy of an Email Reply from Graham Gowman

Hello George,
Sensible question you are asking there “which is the right status, Foundation of Association”?
To clarify there are two models of Charitable Incorporated Organisation (CIO)

The difference is that the Association model allows for all members of the organisation to have a say and a vote in the proceedings of the Charity, mainly at the AGM and a three yearly interval to vote on who the Trustees will be. It still remains the Trustees responsibility to run the Charity legally and  in accordance with its Articles.

The Foundation model only allows for votes from Trustees, but any sensible Charity would of course sample views and involve members in the progress of the organisation.
Charities can change their status if they prefer at a later date.
There are a number of reasons for a Charity using the Foundation model, for instance where there is another organisation involved with a project, and the Charity is bound by certain criteria, say, conditions of occupation (of premises) or lease, or possible condition from funding sources. In this case there may be a requirement or undertaking from Trustees that could be at risk from the more ‘democratic' Association model.

In any event it is worth remembering that Charities (including Sheds) are not a democratic organisation, someone is responsible and that is the Trustees. Being a Registered Charity gives protection to the Trustees much as Directors of a Ltd company are protected form some liabilities, so CIO is a sensible thing to be. Trustee insurance is available and is worth considering whatever model of constitution you use.

The UKMSA preferred form is the Association model, and the UKMSA is itself a CIO on the Association model.

Hope this helps.

Regards Graham Gowman
UKMSA Shed Ambassador