How To Close Down A Group
The guidance set out by the Charity Commission regarding dissolving a charity applies to the following:

•    Charitable groups whose income in the last full accounting period was less than £5 million and whose net assets were less than £100 million.

•    Unincorporated groups whose income in the last full accounting period was between £10,000 and £10 million and whose net assets were less than £100 million.

•    Charitable companies

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How To Close Down A Group

How To Close Down A Group

Charitable Companies
Charitable companies must be removed from the Companies House Register before being removed from the Charity Commission register.  Guidance on how to do this can be found at www.companieshouse.gov.uk.

The trustees are then responsible for notifying the Charity Commissioner of the dissolution and removal from the Companies House register.  This can be done in two ways:

•    Send the declaration form CSD 1077 (available from the Charity Commission website) or,
•    Send a copy of the charity’s final accounts, showing a nil balance and where the assets have gone, together with a certified copy of the minutes of the meeting at which the decision to dissolve the charity was taken, or the certified copies of the relevant resolutions.
Unincorporated charities
For unincorporated charities the guidance is split into three distinct areas:

1.    Inclusion of a dissolution clause in the governing document

•    The procedure set out in the governing clause must be followed by the trustees.
•    They must ensure all liabilities have been settled.
•    The remaining assets have been used for charitable purposes and in accordance with the dissolution clause.

Once this has been done the trustees must notify the Charity Commission using the same procedure as already explained for charitable companies.

2. No specific power to dissolve but all the charity’s assets can be spent.

•    The trustees can bring the charity to an end by spending all the assets to further its purposes, or
•    By donating any remaining assets to another charity with a similar purpose.

Once this has been done you must notify the Charity Commission.

3. No specific power to dissolve but there are permanent endowment assets.

•    A charity cannot be dissolved legally if it has assets representing a permanent endowment.
•    The objects, however, can be changed to fulfil a more useful purpose, providing that prior approval is obtained from the Charity Commission.

•    The Charity Commission can also approve an amalgamation with another charity if it is felt this would be in the best interests of the charity.
Voluntary registration

•    If a group was registered voluntarily then it may be removed from the register.
•    The Charity Commission will, on request, remove the group after checking that the registration was indeed on a voluntary basis.
•    If a voluntary registered group are planning to dissolve or wind up, then it can seek to be removed from the register as a first stage in the process.

This avoids the need to provide the Charity Commission with the additional information named above.