There are many reasons why you may be considering winding up your charity.
Funding may no longer be available; you may be merging your organisation with another non-profit, or the original purpose and mission of your organisation may have been achieved
Even if you are changing the legal structure of your charity, moving from an unincorporated structure to a company, for example, then you will need to wind up the original organisation as part of that process.
Regardless of the reason why you are at the point of winding your charity up, you need to be fully aware of your legal and financial obligations throughout the cessation process. You should first consult your constitution which will set out the powers that trustees have in this area and any particular considerations around winding up.
The Charities Regulator requires all charities that are winding up to notify them. The Regulator will act to protect the assets and charitable purpose of the charity, and will re-distribute any remaining charity funds to an organisation with a similar purpose. You should note the particular requirements of the “winding up” clause in your charity’s constitution.
Practical guidanceThe Revenue Commissioners have also published guidelines in this area, for charities that have registered for the Charitable Tax Exemption.
View the guidanceYou may need to get specialist advice as you work through the process – the list of reduced cost and pro bono legal resources on this page might be useful.
View all resourcesFind out how you can cut your costs, and maybe even avail of FREE membership, by joining The Wheel today.