Unincorporated associations are often the starting point for small, community‑led charities.
They are quick to set up, relatively inexpensive and highly flexible. An unincorporated association is governed primarily by its constitution, with minimal statutory formality, allowing trustees to shape decision‑making and administration around the charity’s needs.
However, that flexibility and simplicity come at a cost. An unincorporated association does not exist as a separate legal body. As a result, the charity cannot enter into contracts or own property in its own name. Instead, trustees (and sometimes members) must do so personally, exposing them to potential personal liability if things go wrong.
This can create practical difficulties as a charity grows. Employing staff, leasing premises, entering into funding agreements or managing assets can all carry risks that sit uncomfortably with a structure that offers no legal separation between the organisation and the individuals running it.
For these reasons, unincorporated associations are generally best suited to small, low‑risk charities with limited financial commitments. Many charities that start life as unincorporated associations eventually choose to incorporate (most commonly as a SCIO or company limited by guarantee) as their activities and responsibilities increase.
How we can help
If you are considering setting up a charity, reviewing your existing legal structure or planning for growth, please get in contact with our Charities and Third Sector team.