We’ve recently written about the different types organisational structures within the not-for-profit sphere in our blogs, so if you are not yet made yourself familiar with their differences please feel free to take a look back through our breakdowns into incorporated organisations, unincorporated organisations and charitable organisations.
Once an organisational structure is decided upon, management must adhere to regulatory requirements set by UK Government.
What are the regulations for?
Regulations are set by UK Government to protect members of the public and ensure the safety of those associated with your organisation. These regulations help to protect the public and beneficiaries and allows for transparency and accountability through clear records and financial reporting.
Following regulations helps to prevent fraud and mismanagement of the organisation, ensuring that those in positions of authority are acting within the best interests of its members. Regulatory framework acts as a preventative measure by setting standards for financial reporting, auditing and conduct.
Companies House
Companies House is the UK’s official registrar of companies. It acts as an agency of UK Government responsible for incorporating and dissolving companies and maintaining accurate public records of company information.
Every company registered within the UK must, by law, submit annual financial statements and other key documents to Companies House. The agency plays a crucial role in the regulation of organisations, making company information such as ownership, financial performance, and legal status publicly available.
It is important to note that Companies House is a regulator, and not an enforcer. It ensures the accessibility of company information but is unable to act upon the behaviour of company directors or oversee governance.
Data Protection
Data protection is crucial for not-for-profit organisations, just as it is for any other company. It’s common for these organisations to handle a lot of sensitive personal information such as member records, financial information and volunteer records, which makes following robust data protection practices essential.
The UK Data Protection Act 2018 and General Data Protection Regulation (GDPR) outlines the requirements for all organisations in order to protect personal data and ensure the respect individual’s privacy rights.
Support
We understand that it can be difficult when first getting to grips with these fundamental aspects of business. At Cygnul we are seen as trusted advisors to the Board for our clients, offering support to associations around the UK.
If you want to explore how these services could help your organisation, please get in touch with us.
