RE: [kFW] Kendra Foundation: Forming and Funding Company...

[Daniel Harris <daniel@xxxxxxxxxxxxx>]

Hi All,

Got this info from James Cronin regarding non-profit entities and what type 
of company they need to be. Very useful to know...

Cheers Daniel

At 21:42 12/07/2002 +0100, James Cronin wrote:
>> Correct me if I'm wrong but isn't FaxYourMP just a normal commercial Ltd
>> company? Granted running as non-profit. It's not limited by guarantee like
>> Nominet, right?
>
>There are two relevant types of company. A company limited by shares or
>a company limited by guarantee. No one is more or less not for profit or
>commercial than the other.
>
>Our memorandum and articles of association prevent the distribution of
>any surplus to any shareholder. In the same way that some companies
>limited by guarantee prevent the distribution of surpluses to members.
>
>> So, you don't need trustees.
>
>No, you need shareholders. There's not really much difference. It's just
>a difference in how you limit the liability.
>
>> Sounds like a much easier route. If I were to do this with Kendra
>> Foundation would it make people less likely to give me funding?
>
>I doubt it would make any difference. Other than possibly people are
>less familiar with companies limited by guarantee.
>
>Thought about a charity? The audit overheads can be expensive, but they're
>can be more clearly not for profit.
>
>J.