Community Benefit Company - Charitable Status

by **cristomos** on Mon Nov 28, 2011 2:11 am

Hi
I volunteer as a Director of an Industrial Provident Society (IPS) with the aim of supporting local communities to produce allotment foods and local crafts. We have bought some old shed and building through setting the IPS up as a Community Benefit Cooperative and asking local people to buy a £200 share to set up and buy the buildings. We raised £210,000 and had a loan to clinch the building for £360,000. We had hoped the community benefit constitution IPS as registered with he FSA would grant us a charitable status but unfortunately we have had to pay the Stamp Duty on top of the purchase price. We do not give the share holders a dividend and shares cannot be transferred which we hoped would show that we were a genuine community organisation. There is a note that interest can be given to shareholder but then we pay interest to the bank for the loan element of the purchase. Any words of advice for a well supported community venture?
Thanks
C W T

by **section 44** on Mon Nov 28, 2011 12:33 pm

cristomos wrote:would grant us a charitable status

Who do you contemplate granting charitable status? The charity commission or somebody else (if so, whom)?

by **cristomos** on Mon Nov 28, 2011 8:54 pm

Hi
I would hope that HMRC would see that our community association have charitable aims of supporting local community shops and community allotment schemes.
Our surpluses are devoted to starting/enhancing further community and charitable activities.
Regards
CWT