1.3 TrustsA trust can exist with or without charitable status and is typically established as a means of controlling how assets are to be used or distributed. For example, a village hall trust will own the hall and ensure that it is applied for public benefit as directed by its trust deed. Similarly, a trust may also make donations or awards from its monetary assets to support the beneficiaries stated in its trust deed. As an unincorporated legal structure, meaning that the trustees incur personal liability (please see section 1.1), and with limited powers in achieving its purposes, the trust has become somewhat of a redundant structure. In fact since January 2016, the number of registered charities adopting the trust structure has reduced by 244 (July 2018).
With incorporated alternatives available such as the Scottish Charitable Incorporated Organisation (SCIO) and company limited by guarantee, careful consideration should be given before selecting the trust structure. Although you may want to use the word ‘Trust’ in your organisation’s name, it doesn’t mean that your organisation has to be a trust; most community development trusts are in fact companies limited by guarantee. The key characteristics of a trust are detailed in the below table. Key Characteristics of a Trust
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TOPICS1.0 Getting Started
1.1 Legal Structures 1.2 Unincorporated Association 1.3 Trusts 1.4 Scottish Charitable Incorporated Organisation 1.5 Limited Company 1.6 Community Interest Companies 1.7 Developing a Governing Document 1.8 Writing your Organisations Purposes 1.9 Applying for Charitable Status 1.10 Applying for Company Status 1.11 Applying for CIC Status 2.0 Developing and Growing 3.0 Taking on an Asset 4.0 What is Social Enterprise 5.0 Volunteering 6.0 Funding 7.0 Dissolving an Organisation |
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Registered Office: 20-22 King Street, Bathgate, EH48 1AX