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Hi, I work for a not for profit organization, in the last year we have had our workforce reduced by 2, and 2 members of staff have gone part time. We were told about 6 months ago that these measures were necessary as takings were down. We have just found out that our directors (of which there are 2) awarded themselves over £400,000 in 2 years as back pay as they were not being paid enough. This they have admitted to us when a member of staff requested the details of our company from companies house. We are back up to taking the same amount of money as we were last year, albeit with less and reduced staff hours, this has caused a detrimental effect on the rest of the staff, who are finding the stress of doing more work very difficult, and also feel the running of the company is not right. Could anyone tell us the best way to approach this situation, I am thinking Acas. Also we want to join a union, would this be possible as we are non profit org. We do not have any trustees and the 2 directors have to answer too no one. Thank in advance for any help.

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In what sense is it a not-for-profit organisation if the directors answer to no-one? If there are no trustees then who owns the organisation or what type of organisation is it?

 

Its a recycling company, we pick up any items, or they are donated, we clean, restore etc and sell in a shop. We have a discount for oap's, people on benifits and students. We work with dhss when someone needs a house furnished etc. As far as I know there are no shareholders. Could I also ask, if there are directors of a company should there be board meetings? and who should attend them? Thanks in advance.

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So where does the money from the shop go? Somethings not right here.

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Hi dempseydog,

 

it may help clarify things for you if you were to find out the legal structure of your organisation, i.e. (a community interest company, CIC, a company limited by guarantee, CLG [which it might be given the terminology you have used], or a charitable incorporated organisation, CIO, [these are fairly new legal forms]).

 

In theory not-for-profit organisations are there to help their beneficiaries/service users, not for the directors to help themselves.

 

A social enterprise which is in the legal form of a CLG is run by directors and it should be regulated by Companies House. If a CLG is also a registered charity then the CLG will also be regulated by the Charity Commission.

 

You could check out the Charity Commission website to see if your organisation (a) a registered charity and (b) has supplied a copy their annual accounts (which can be viewed online on the Charity Commission website).

 

http://www.charitycommission.gov.uk/find-charities/

 

I'm not sure what you actually seeking to resolve.

 

If it is the back-pay issue you could possibly refer that to the regulatory bodies - but you need to be reasonably sure you have the right information before going down that route.

 

If it is the present work load/conditions it seems a good idea to sign up with a union who will be able to advise you.

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Just to add - you should be able to find out what type of legal entity the organisation is by checking your employment contract. If the employer has "Limited" in its name you are dealing with a company, if not you are probably dealing with a charity.

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Just to add - you should be able to find out what type of legal entity the organisation is by checking your employment contract. If the employer has "Limited" in its name you are dealing with a company, if not you are probably dealing with a charity.

 

That is a common misconception I'm afraid. There are many social enterprises who are companies limited by guarantee and are registered charities. They may, or may not, use 'limited' in their documentation.

 

Some large charities (such as Action for Children) may have a subsidiary trading company (Action for Children Services Ltd) which belongs within the overall charity.

 

We also have industrial and provident societies which use limited in their title (such as the MCCH Society Limited).

 

There are many overlaps between the public, private and third sector organisations these days. Not everything is as it might seem at first glance.

 

Just saying. :yo:

Edited by SweetLorraine
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