Changing to non profit

yomchi

Hi guys,

I hope this thread fits here, I couldn't find any other relevant forum for such a question.

Has anyone here any experience in registering a sports club as a not for profit organisation?

I have googled the life out of it but can't find anything and the revenue site only talks about registered charities.

Any info would be appreciated!

Jon

silent_spark

What's your legal structure at the moment? I think you probably want to be a CLG - company limited by guarantee. Previously not for profits would have just been a regular LTD company without share capital distribution, but with the new companies act they've transitioned over to the CLG format. You'll need a memorandum and articles of association - you can search for these online, but you probably ought to get someone to help draft them for you as there are particular requirements for charitable tax exemption from Revenue (separate to being a 'registered' charity).

yomchi

Cheers for that. I started the club in 2007 and registered it for tax. At the time the only advice I got was to register as a sole trader which I have been since 07. At the moment the club has quite large over heads due to our location (professional building etc) and it actually makes very little in profit but covers itself well financially over the month. I was advised that I should make the club non profit and keep myself as a sole trader hence keeping both separate.

I'll talk to the accountant about it, but thanks for the info so far.

Cheers!

silent_spark

From what I know, you'll also need a board of directors (voluntary), who will manage/oversee the organisation. If you plan to be employed/subcontracted by the organisation you can't sit on the board, so you would effectively be signing the organisation over to them. Have a look at the Revenue guidelines for charitable tax exemption, they're quite useful. Best of luck.

yomchi

silent_spark wrote: »

From what I know, you'll also need a board of directors (voluntary), who will manage/oversee the organisation. If you plan to be employed/subcontracted by the organisation you can't sit on the board, so you would effectively be signing the organisation over to them. Have a look at the Revenue guidelines for charitable tax exemption, they're quite useful. Best of luck.

Yes that was plan alright, good advice there really appreciate that mate.

Thanks a lot

CIARAN_BOYLE

yomchi wrote: »

Yes that was plan alright, good advice there really appreciate that mate.

Thanks a lot

Some things to bear in mind.
There has to be multiple directors.
They can't be 'connected' to each other or to you.
Accounts and CRO returns may have to be filed. There may be a cost related to this in excess of what you currently pay for personal income tax returns.
If you are late getting returns in you may be subject to audit. Can your current accountant do audits.
As a non profit would you seek charitable status? Charities may be subject to Audit.
Your creditors may be relying on the fact that you personally have assets in case you damage your rented premisses your property may be on the hook at present. Will they deal with you if you are no longer on the hook.
In some areas you may need to double up on insurance, the company and you as a subcontractor may need separate insurance.