|
When the givers stop giving
Sad though it is, Dodd Rescue have found themselves advising quite a few charity or other "not for profit" organisations in recent months. This has ranged from sizeable local charities with their own premises and workforces, down to volunteer-run playgroups.
We see this activity as a direct result of the economic downturn. If the family budget is tight, people simply don't want to give their money away.
Public spending cuts have made the position even worse, especially for council funded organisations.
Whilst there may be difficult decisions to be made and a variety of different bodies to deal with (eg local councils or the Charity Commission etc) those involved should not lose sight of the fact that not-for-profit organisations and charities may need to be wound up just like any other business, should the rules allow.
The starting point for any of our advice in this scenario is to look at the organisation's constitution. This can quickly tell us what sort of route we need to take - whether this is by rescue or formal insolvency.
If you are involved with any kind of organisation of this type that has fallen on hard times, then remember - the normal rules of business apply.
This means that if you are involved in an organisation which is constituted under a deed of trust, then you must be aware of your duties and responsibilities as trustee. Similarly, if your organisation is run as a company, you must be aware of your duties as a director and particularly those which are explicitly defined under company law.
Don't allow your organisation to struggle on if there's no prospect of ever paying the bills; don't do anything to jeopardise the cash reserves or other assets that you already have; and most importantly - don't wait too long to seek advice from Dodd Rescue.
For help with personal debt issues including a free initial consultation please contact Jeanette, Jackie or Carol on 0800 9540520.
|
